The Impact of Rising Energy Costs on Representative Farms
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Recent increases in natural gas and fossil fuel based energy sources have had a negative impact on the financial condition of agricultural producers across the nation.
• In addition to higher fuel costs for trucks, equipment, and irrigation motors, the cost of nitrogen fertilizer is closely linked to energy prices and has also increased significantly.
• This study quantifies the impacts of these increases on the economic viability of representative farms located throughout the United States for the years 2005 and 2006.