Impacts of Higher Energy Prices on Agriculture and Rural Economies

<p>Agricultural production is sensitive to changes in energy prices either through energy consumed directly or through energy-related inputs such as fertilizer. A number of factors can affect energy prices faced by U.S. farmers and ranchers including developments in the oil and natural gas markets and energy taxes or subsidies. Climate change policies could also affect energy prices as a result of taxes on emissions regulated emission limits or the institution of a market for emission reduction credits. Here we review the importance of energy in the agricultural sector and report the results of a case study on the economic implications for the farm sector of energy price increases that would arise from plausible constructed greenhouse-gas-emission reduction scenarios. Higher energy-related production costs would generally lower agricultural output raise prices of agricultural products and reduce farm income regardless of the reason for the energy price increase. Nonetheless farm sector impacts were modest for the scenarios and time periods examined. We demonstrate the unique distribution of effects resulting from price (or cost) increases for different types of energy due to pricing their carbon content as well as the relative use of energy in production of different agricultural commodities.</p><p>This work has been selected by scholars as being culturally important and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact and remains as true to the original work as possible. Therefore you will see the original copyright references library stamps (as most of these works have been housed in our most important libraries around the world) and other notations in the work.</p><p>This work is in the public domain in the United States of America and possibly other nations. Within the United States you may freely copy and distribute this work as no entity (individual or corporate) has a copyright on the body of the work.</p><p>As a reproduction of a historical artifact this work may contain missing or blurred pages poor pictures errant marks etc. Scholars believe and we concur that this work is important enough to be preserved reproduced and made generally available to the public. We appreciate your support of the preservation process and thank you for being an important part of keeping this knowledge alive and relevant.</p>