There is no "cheap" way to get into pellets unless you happen into a good used machine.
The link will die soon, but they are out there:
http://columbiamo.craigslist.org/bfs/3919774320.html
The catch with that machine is it is 3-phase power, which if you don't have it already would be very expensive to add.
I ran the numbers on the small mills, and the fuel/power/time/capital to run them made it more expensive than just buying the feed and fuel. And I have unlimited free sawdust at my disposal.
"You must be the change you want to see in the world." "First they ignore you, then they laugh at you, then they fight you, then you win." --Mahatma Gandhi
"Preach the Gospel always, and if necessary, use words." --Francis of Assisi.
"Family farms work when the whole family works the farm." -- Adam Klaus