Isaac Orr talks California’s ban on gas engines on Justice in the Morning
Yesterday, Isaac Orr joined Jon Justice to talk about California’s ban on gasoline and diesel engines and how it affects Minnesota.
The article below is from the U.S. Energy Information Administration’s Today in Energy series. It was published in October of 2014, but it reinforces the points I made earlier this week about how higher gas taxes will disproportionately hurt rural Minnesotans. The second graph in this post is especially interesting because it shows that diesel fuel, is the largest energy source used in agriculture because it works. Admittedly, I am not certain if the proposed fuel-tax increase would increase the taxes for off-road diesel, but this is something agriculture interest should pay close attention to. If raising the gas tax is needed for building roads, we shouldn’t have to increase the cost of off-road fuels.
Source: 2013 Agricultural Resource Management Survey (ARMS)
The U.S. agriculture industry used nearly 800 trillion British thermal units (Btu) of energy in 2012, or about as much primary energy as the entire state of Utah. Agricultural energy consumption includes energy needed to grow and harvest crops and energy needed to grow livestock. Crop operations consume much more energy than livestock operations, and energy expenditures for crops account for a higher percentage of farm operating costs.
Agricultural energy consumption includes both direct and indirect energy consumption. Direct energy consumption includes the use of diesel, electricity, propane, natural gas, and renewable fuels for activities on the farm. Indirect energy consumption includes the use of fuel and feedstock (especially natural gas) in the manufacturing of agricultural chemicals such as fertilizers and pesticides.
Energy makes up a significant part of operating expenditures for most crops, especially when considering indirect energy expenditures on fertilizer, because the production of fertilizer is extremely energy-intensive, requiring large amounts of natural gas. For some crops like oats, corn, wheat, and barley, energy and fertilizer expenditures combined make up more than half of total operating expenses. The proportion of direct to indirect energy use varies by crop. For example, corn, which is also used as an energy input for ethanol production, has relatively low direct fuel expenditures but has the highest percentage of fertilizer expenditures.
Source: U.S. Energy Information Administration, Annual Energy Outlook 2014
The energy consumed in livestock operations is almost solely direct energy consumption and is relatively low compared with crop operations, both as a percentage of total operating expenditures and on a total energy basis. Livestock operations consume direct energy for ventilation systems, refrigeration, lighting, heating, watering, motors, and waste handling, whereas crop operations use energy to plant, harvest, irrigate, and dry crops. The energy consumed in the production of livestock feed is not included in this analysis of livestock energy consumption.
Distillate fuel is the dominant fuel for direct energy consumption for both livestock and crop operations. Distillate is used for crop tilling, harvesting, weed control, and other operations that require heavy machinery. Crop drying is another fuel-intensive farm activity, and the amount of fuel used varies by the type of crop and its moisture content. High-temperature dryers are powered by either electricity or propane.
Supplying water can also be an energy-intensive task. Although some farms have access to public water supplies, most farms pump water from wells and groundwater sources. Most pumping is done with electricity, but pumps in remote locations may use diesel or propane.
The chemicals used by the agricultural industry are a subset of the bulk chemical industry and include fertilizers and pesticides. Nitrogenous (ammonia-based) fertilizers require large amounts of natural gas as a feedstock and provide heat and power for processing. EIA’s 2010 Manufacturing Energy Consumption Survey estimates that the U.S. nitrogenous fertilizer industry consumed more than 200 trillion Btu of natural gas as feedstock in 2010 and another 152 trillion Btu for heat and power.
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