American agricultural production is the most heavily mechanized of any nation in the world. Consequently, the energy to operate farm equipment and machinery is a critical input to continued farm production. In 1983, fewer than 2 quads (quadrillion Btu) of energy were used in farm production. Energy represents 7.5 percent of farm production costs. With decontrol of the petroleum industry completed in 1981, farmers no longer have priority for fuels. They must compete for fuels with others in the marketplace with price as the allocator. Since farming is an industry composed of small, widely dispersed firms, the cost of supplying energy to farmers is higher than that required to serve urban customers. In times of thight supply, fuel likely will cost farmers more than urban customers and its supply is less assured. With few customers per square mile, many manor oil companies have elected to forego serving some of the farming community, leaving as the principal suppliers the farmers themselves, through cooperatives, and small independent distributors. These suppliers have limited fuel resources.

Media Info

  • Pagination: p. 55

Subject/Index Terms

Filing Info

  • Accession Number: 00395622
  • Record Type: Publication
  • Source Agency: Energy Research Abstracts
  • Report/Paper Numbers: CONF-840229
  • Files: TRIS
  • Created Date: Jul 31 1985 12:00AM