Increasing Farm Profitability Through Energy Efficiency

Mike MorrisNational Center for Appropriate Technology

About NCAT

National non-profit organization, founded in 1976

Programs: Sustainable Agriculture, Energy, Communities Butte & Missoula, MT Fayetteville, AR Davis, CA Lewis, IA

NCAT does renewable energy and energy conservation projects.

•Wind•Solar

•Biofuels•Green

Design

•Home or farm energy audits

•Consumer information

The big picture:

Where is the energy going?

U.S. food system: 15-20% of all U.S. energy consumption

Home Refrigeration &

Preparation

31%

Agricultural Production

21%

Transportation

14%

Processing

16%Restaurants

7%

Food Retail 4%

Packaging 7%

Source: Heller & Keoleian, 2000

U.S. agriculture: 1-3% of all U.S. energy consumption

Fertilizer Production

29%

Herbicide/Pesticide Production 6%

Irrigation 7%Diesel Fuel

(Non-Irrigation) 25%

Gasoline 9%

Natural Gas(Non-Irrigation)

1%

Liquid Petroleum Gas 5%

Electricity (Non-Irrigation) 18%

Source: Heller & Keoleian, 2000

• Energy-related expenses are about 14% of total US farm expenses. (1)

• U.S. farms have roughly doubled direct & indirect energy efficiency since 1978. (2)

• Many producers find themselves on a treadmill, with shrinking profit margins.

(1) USDA Energy Policy Office, 2005; (2) Hawken, Lovins, & Lovins 1999

Big Picture (cont’d)

So why is farm energy efficiency important?

1. Some of the cheapest energy farms can harvest.

2. Some of the cleanest energy farms can harvest.

3. Some of the energy farms can harvest most quickly.

4. Crucial to farm survival and food security in times of high energy costs.

5. The responsibility of every industry, in order to reduce imported energy and greenhouse gases.

Energy efficiency is…

What are some good opportunities to improve farm energy efficiency?

1. Reduce the use of fertilizer, herbicides, and

pesticides• Natural gas = 90% of the cost of nitrogen fertilizer production.

• Production costs increased from $80 per ton in 1980s to $300 per ton in 2005.

• Over half of nitrogen fertilizer used in the U.S. is now coming from overseas.

Strategies• Cover crops and manures (green &

animal).• Nitrogen-fixing crop rotations.• Composting and compost teas.• Integrated pest management, organic

farming.Non-energy benefits

• Human health

• Water quality• Wildlife

health• Soil health

2. Reduce tillage to reduce fuel use• Conservation tillage, no-till, reduced

tillageNon-energy benefits

• Reduced soil erosion• Increased organic

matter

• Optimizes soil moisture

• Improves water quality

3. Reduce “food miles”

• Dramatic increases in truck transport (vs. more energy efficient rail or water) since 1970.

• Produce in the US travels, on average, 1300 – 2000 miles from farm to consumer.

• Community supported agriculture (CSA)

• Farmer’s markets• Farm-to-school

Strategies: local food systems

Non-energy benefits

• Fresher, better-tasting, more nutritious food

• Higher profits for producers• Money stays in rural

communities

4. Improve irrigation efficiencyNon-energy benefits

• Water conservation

• Improved crop yields

Strategies• Energy audits and equipment

improvements

Strategies (cont’d)• Educational publications

Strategies (cont’d)

• Soil moisture monitoring

The M. K. Hansen AM400 Soil Moisture Data Logger

Soil moisture monitoring (cont’d)

Soil moisture monitoring (cont’d)

Where can I get more help?

NCAT’s ATTRA Project: The National Sustainable Ag Information Service

•>200 free publications

•Funded by USDA Rural Business-Cooperative Service

•Free customize research

• Farm energy: efficiency and renewable energy

• Pest management

• Organic farming

• Soils and compost

• Water management

• Livestock

• Marketing, business, and risk management

• Challenge us!

ATTRA offers expertise & FREE research on

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“an amazing source of information”

- New Hampshire NGO

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impressed and pleased with ATTRA’s service.”

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North Carolina educator

www.ncat.org

ATTRA National Sustainable Agriculture

Information Service

www.attra.ncat.org 1-800-346-9140 (English)

1-800-411-3222 (Spanish)