Farms spend More On Indirect Energy Inputs Like Fertilizer Than Direct Energy Inputs Like Fuel

Feb 13, 2015

The agricultural sector uses energy both directly (in the form of fuel and electricity) and indirectly (through use of energy-intensive inputs, such as fertilizers and pesticides). Data from the Agricultural Resource Management Survey show that on average, the share of operator expenses for indirect energy (about 17.1 percent) exceeds the share of expenses for direct energy (about 8.5 percent) among U.S. farm businesses, across all farm sizes.

Small farm businesses have the highest share of direct energy expenditures (about 12 percent of all small farm production expenses), while medium-sized farm businesses have the highest share of indirect energy expenditures (about 22 percent of expenses).

Large farm businesses have the lowest share of energy-based expenses, since large farms typically have higher expenses for labor than smaller farms, reducing energy’s share of total expenses.

Source:usda.gov

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.