Agriculture and energy are at the heart of Pennsylvania’s economy, and natural gas plays a foundational role in the farming sector’s ability to modernize and provide a more sustainable, secure food supply.
In addition to making the material used to preserve, store and cook food, natural gas is also used in the production of essential crops both as an energy source (think powering equipment, tractors, refrigerators) and a feedstock to manufacture ammonia, a core fertilizer ingredient.
U.S. agriculture’s five largest subsectors alone consume more than 2 trillion cubic feet (tcf) of natural gas per year, the American Gas Association (AGA) analyzed in their latest report. That’s roughly the same amount as the entire state of California consumes.
The use of abundant and clean natural gas optimizes production with far less environmental impact. Using affordable, domestic resources reduces overall costs and enhances access to affordable food.
“There is a direct line from the availability of low-cost natural gas to the cost of food on grocery store shelves,” AGA notes.
With the direct impact natural gas has on the affordability, as well as the efficiency, of the U.S. food supply, removing barriers that may hinder agricultural use of domestic natural gas should be prioritized.
Put simply, “the viability of our agricultural sector, as in any other region of the country, is reliant upon access to abundant and affordable energy resources,” Congressman GT Thompson (PA-15) and Chair of the U.S. House Committee on Agriculture, wrote in the Washington Times last month.
In Pennsylvania, these leading industries have a longstanding history of working as one to advance opportunities across the Commonwealth. And as a key supporter of Pennsylvania agriculture, the growth of natural gas supplies boosts the long-term outlook for farms across the state.
Royalty and bonus income payments to landowners – oftentimes farmers – enable families to upgrade equipment, renovate or replace essential farm structures, expand operations, and provide more for their family and employees. Well over $8 billion was paid to Pa. landowners in royalty payments between 2010-2018, according to the Independent Fiscal Office (IFO). While such added incomes spur economic growth in rural pockets of the state, revenue generated by the state’s impact tax on natural gas also helps preserve farmland and fund environmental conservation programs. More than $86 million was awarded last year specifically for these statewide environmental initiatives.
As PennLive reported last year, “times have changed for the better when it comes to royalty payments for property owners in the Marcellus Shale region of Pennsylvania with natural gas well leases.”
Operators in the region also support youth education organizations promoting a thriving local agriculture industry like 4H and Future Farmers of America (FFA), as well as nonprofits that help address food insecurity across the state:
- “Special thanks to conference sponsors…Seneca Resources…for investing in the future of agriculture and the young men and women who will be the future of agriculture at all levels.” (Huntingdon Daily News)
- “Feeding Pennsylvania and its nine-member food banks solicited sponsors to kick-start the 2023 [Fill A Glass With Hope] campaign, raising a record of over $201,000. Funds will be used to purchase fresh milk at a reduced price from their local dairy processors. Sponsors included four $25,000 Keystone sponsors: Columbia Gas and the NiSource Foundation, Coterra Energy, FirstEnergy Foundation [and] Southwestern Energy.” (Milton Standard Journal)
- “Since 1991, [Hunters Sharing the Harvest] has channeled more than two million pounds of deer meat…to food banks, soup kitchens, and churches for distribution to those in need. These donations have provided more than 10 million servings of lean, high-protein venison to food-insecure Pennsylvanians.” Sponsors include: CNX Resources, Range Resources, National Fuel Gas / Seneca Resources. (Farm and Dairy)
- “Greene County landowners with a lease with EQT Production Co. and/or its affiliates have the option to withhold a certain percentage of their monthly royalties to be sent directly to the Community Foundation of Greene County toward the GIVE Greene County Fund.” (Observer-Reporter)
As a former Southwestern Pa. dairy farmer wrote in the Trib, “American natural gas has been a godsend for many farmers. It has brought down fuel costs considerably, helped make some farmers very prosperous and even helped reduce carbon emissions. The evidence is plentiful in the commonwealth.”