The value of oil and gas production on farmland amounted to $226 billion in 2014, or about two-thirds of total production

The value of oil and gas production on farmland amounted to $226 billion in 2014, or about two-thirds of total production

Oil and gas production disproportionally occurs in areas where large shares of land are operated by farmers and ranchers. In 2014, the value of oil and gas production on land operated by farms amounted to $226 billion, or about 67 percent of the total $338 billion in oil and gas production in the contiguous United States. Oil and gas production on farmland was concentrated in California, in a band from North Dakota to Texas, and in the Marcellus Shale, which reaches into Pennsylvania, West Virginia, and Ohio. Most nonoperator landlords (who rent out the farmland they own to farmers) and most farm operators do not own the oil and gas rights associated with their land and are thus unable to receive payments. In the 1,080 counties with oil and gas production in 2014, only 13 percent of nonoperator landlords and 10 percent of farm operators reported receiving oil or gas payments. Payments to farmland owners (operators and nonoperator landlords) amounted to $7.4 billion—but ERS estimates this could have been as high as $40 billion if all farmland owners had also owned the oil and gas rights associated with their farmland. This chart appears in the June 2018 ERS report, Ownership of Oil and Gas Rights: Implications for U.S. Farm Income and Wealth.


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Last updated: Friday, October 12, 2018

For more information contact: Claudia Hitaj