National Farmers’ Day provides an opportunity to celebrate the hardworking individuals who are feeding the world – and to recognize the invaluable role of natural gas in boosting American agriculture production.
Due to advanced technology and the availability of domestic natural resources, including natural gas, the American farmer is responsible for producing more food than ever before. As global population is expected to surpass 9 billion, access to natural gas’ versatile capabilities ensures stability and reduces costs across the food supply chain, which is critical to helping make groceries and everyday necessities affordable for consumers.
Economic Benefits
Farming is hard work, and the success of any farmer’s efforts is often dependent on factors beyond their control. Unpredictable crop yields, not to mention international events like Russia’s war against Ukraine (the breadbasket of Europe) means that farmers often operate on narrow profit margins. Access to stable and reliable energy resources is critical to giving our farmers a fighting chance to succeed. The U.S. agriculture sector accounts for roughly 15% of total commercial and industrial natural gas consumption, according to the American Gas Association. Natural gas is the most affordable fuel available, and increased domestic production in Appalachia will help maintain a reliable, abundant supply for farmers and ranchers to utilize across operations.
Supporting 17.2 million jobs, U.S. agriculture contributes roughly $1.75 trillion to the country’s GDP—all of which are reliant upon cost effective, stable natural gas supply. Appalachia’s natural gas industry is working diligently to ensure a secure energy supply, while providing family-sustaining and community-sustaining careers.
In fact, new economic data from the Marcellus Shale Coalition finds approximately $6.3 billion was paid in royalties to Pennsylvania landowners, oftentimes farmers, and others in 2022.
“Royalties to landowners have been used to change the trajectory of local farming operations…Particularly with the effects of inflation and supply chain constraints, agriculture operations would be less prosperous if it weren’t for shale development – threatening food security for millions,” Williamsport-area Foxdale Farms owner and operator Matt Henderson wrote to the Sun-Gazette.
Member-driven efforts, such as EQT’s GIVE fund with the Washington County Community Foundation (WCCF), are encouraging landowners to give back to local communities by matching up to $10,000 per land lease from royalty payments.
“My husband and I were thrilled to learn about the GIVE Washington County Fund, which allows EQT leaseholders to double their WCCF donation dollars with matching funds provided by EQT. With the WCCF managing the funds, we also know our donation will be used to the greatest possible benefit across our community,” landowner Kris Drach told the Observer-Reporter.
Food Production
Across the food supply chain, natural gas is utilized in crop cultivation, livestock farming, and food production. From the fertilizers used in crop production, the harvesting tools made from plastic and steel, and the fuel used to transport food across the globe, natural gas products are vital to supporting the world’s food supply chain.
Fertilizer, which relies on natural gas for ~80% of its production, is essential to increasing crop yield, allowing for a more efficient operations.
“Natural gas is a key feedstock in a variety of items needed to maintain a productive and affordable agricultural sector, and because we can produce those items domestically with natural gas, we are able to shield our farmers from supply chain bottlenecks around the world,” explained American Gas Association President and CEO Karen Harbert.
Reduced Emissions
Natural gas provides an avenue to lower carbon and other emissions across hard-to-abate industries, including agriculture. For example, farmers use natural gas-powered equipment to lower operational emissions. The University of California found natural gas-powered irrigation engines reduce greenhouse gas emissions by 80%.
Agriculturalists and energy producers are partnering to implement environmentally sustainable operations across the value chain. The American Gas Association reports over 16,000 farms already employ natural gas in their operations—which reduces greenhouse gas emissions, as well as helps farmers save on fuel costs.
As we celebrate National Farmers Day, it is essential to recognize the pivotal role of natural gas in modern agriculture. Natural gas powers essential equipment, reduces environmental impacts, and supports the economic viability of farming operations. While the agricultural sector continues to innovate and explore sustainable practices, natural gas remains an essential part of feeding the world’s growing population, while minimizing the industry’s environmental impact.
