Energy Efficiency in Agriculture: A Review of the Role of the Federal Government and State and Private Entities

This paper explores how federal, state, and private programs have encouraged efficiency in the agricultural sector.

Click on the PDF link above to view the full report.

Agricultural Efficiency Programs: Farm Bill and Beyond

Agriculture is one of the most important sectors in the U.S. economy. Energy inputs are found in every stage of production – from applying chemicals, to fueling tractors that harvest crops, to supplying electricity for animal housing facilities. This significant energy consumption has left farmers vulnerable to high energy costs, as well as volatile energy market fluctuations that impact fertilizer costs. However, energy efficiency measures can help agricultural producers save energy without harming productivity. In fact, farmers can enhance their operations with effective energy efficiency programs, such as educational training and incentives for energy efficiency improvements.

This paper will review some measures that have already been adopted to make agricultural processes less energy-intensive and thus less costly to farmers. Some existing programs and policies include:

• Rural Energy for America Program (REAP), which is the only program in the energy provisions in the Farm Bill that directly helps agricultural producers and small rural business owners make energy efficiency improvements and implement clean energy.
• Sustainable Agriculture Research and Education Program (SARE),administered by the National Institute of Food and Agriculture, provides grants and educational materials on a broad range of sustainable agriculture topics as well as outreach to farmers on how to conserve energy.
• Conservation Stewardship Program (CSP) is part of the farm bill conservation title and administered by USDA’s Natural Resources Conservation Service (NRCS). It provides technical and financial assistance to agricultural producers to promote resources conservation and enhancement of working farmland and encourages measures to achieve environmental stewardship goals for applicants’ respective regions.
• Environmental Quality Incentives Program (EQIP) is also administered by the NRCS and provides funding for agricultural producers to implement conservation practices for energy, soil and water. Unlike under CSP, farmers are not required to address conservation practices before applying for funding, and EQIP also provides funding for national programs, not just individual farms, to accomplish its goals.
• State, Local, and Private Programs and Organizations can contribute to promoting energy efficiency in the agricultural sector through initiatives such as Rural Electric Cooperatives (RECs), which are customer owned electric utilities that can target energy efficiency in rural areas, and companies that work specifically on agricultural energy efficiency like Ensave.