Energy in Every Bite: How Rising Energy Costs for Farmers Show up at The Grocery Store
When you take that first bite of your meal, energy is probably not the first thing crossing your mind – but it is the reason that bite exists in the first place.
Growing and harvesting food is not an easy feat – it requires more than just soil and sunlight. No matter the size of the farm, energy is the cornerstone for ensuring that families get clean, fresh, and tasty food in every kitchen.
Energy – it’s the back bone of farming
The agriculture industry keeps our country going – which is why farmers need access to affordable and reliable energy. Without it, farmers cannot afford to stay in business, and our grocery trips will start to look a lot different.
For family-owned farms, energy makes up anywhere from 19% to 37% of total operating costs, depending on the crop and region of the farm.
Think about it: natural gas and diesel provide the energy needed for tractors, irrigation pump systems, food processing equipment, and even the trucks that distribute the crops to your local grocery store.
When energy costs rise, farmers feel the effects
For many farms – especially family-owned farms – budgets are already tight. This means rising energy costs can have long-lasting effects on these family operations.
To put it in perspective: the average family farm is about 466 acres. If natural gas increases by $2 per MMBtu and diesel by $2 per gallon, you’re looking at costs rising by $14,000 to $31,000 per year.
This can be the difference between farms continuing to produce food – and closing down operations entirely.
The ripple effect: how this shows up at the dinner table
Farmers aren’t the only ones who struggle from high energy prices.
Less crops from farmers = higher food prices in the grocery store.
The World Bank has found that high energy prices are the leading driver for high food prices. These effects trickle down from the farms all the way to the checkout line – hitting hardest for fixed income families who already face tight budgets.
CEA Bottomline:
When you support affordable and reliable energy, you help farmers with what they do best – grow healthy and tasty food for families across America. Farmers can afford to stay open, and families can afford to stay fed.
Energy policy means more than just politics – it shapes how family-owned businesses run and if families can afford this week’s grocery bill.