ERS Charts of Note

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Large family farms receive the highest payments from energy development

Monday, September 30, 2024

Energy payments, such as for leasing land for wind, oil, or natural gas development, are higher on average for large-scale family farms. Among those receiving payments from 2011 to 2020, large-scale family farms (those with gross cash farm income of $1 million or more), received an average annual energy payment of $152,285. By comparison, small family farms, whose gross cash farm income is less than $350,000, received an average annual energy payment of $18,088. Although the payments for midsize farms (those with gross cash farm income between $350,000 and $999,999) were similar to nonfamily farms, the portion of midsize family farm landowners receiving payments was more than twice as high at 6.82 percent versus 3.23 percent. This indicates that nonfamily farms may have different objectives and face different trade-offs when evaluating whether to lease land for energy development. Between 2011 and 2020, 3.5 percent of farm operations received energy payments, and the average annual payment to the operators was more than $30,000 in 2020 dollars. Read more about the size, frequency, trends, and relative contribution of energy payments to farm operator income in the USDA, Economic Research Service report The Role of Commercial Energy Payments in Agricultural Producer Income, released in April 2024.

2022 Census of Agriculture: California, Texas, and Iowa lead Nation in most farm operations with renewable energy systems

Thursday, September 12, 2024

Across the United States, 8 percent of farms and ranches (153,101 out of 1.9 million) had renewable energy systems in 2022, according to data from the 2022 Census of Agriculture. This was an increase from 7 percent of farms and ranches reporting renewables in the 2017 Census of Agriculture. Renewable energy systems include everything from small-scale systems, such as rooftop solar and small hydro systems, to large-scale systems, such as solar and wind farms, as well as methane digesters, and geothermal systems. Nationally, 11 percent of all farms and ranches in the United States with renewables are in California. Texas is second with 10 percent of the U.S. total, which are located on 6 percent of the farms and ranches in Texas. States in the Southeast have the lowest share of farms and ranches with renewable energy systems, many with less than 1 percent of the U.S. total. States where more than 20 percent of farms and ranches in the State had renewable systems include Hawaii (34 percent), California (26 percent), Massachusetts, and Vermont (both 23 percent). For more Census of Agriculture data, see the USDA, National Agricultural Statistics Service’s 2022 Census of Agriculture page.

Larger farms received highest annual energy development payments between 2011 and 2020

Tuesday, August 13, 2024

Energy payments to farm operations increased with the number of acres owned. These payments are compensation received by landowners for energy development such as from oil, natural gas, wind, or solar that occurs on their farmland. Researchers with USDA, Economic Research Service (ERS) used USDA’s Agricultural Resource Management Survey data to find the average annual payment made for energy development between 2011 and 2020 to farm operators based on acreage owned. Those who owned more than 1,000 acres received an average yearly payment of $56,797. Those who owned fewer than 100 acres received an average of $12,351, less than a quarter of payments made to the largest farms. Higher payments to larger farms are associated with owners having large tracts of land preferred for energy development. More than 13 percent of farm landowners with greater than 1,000 acres received energy payments between 2011 and 2020, compared with less than 2 percent of landowners with fewer than 100 acres. Read more about the size, frequency, trends, and relative contribution of energy payments to farm operator income in the ERS report The Role of Commercial Energy Payments in Agricultural Producer Income, released in April 2024.

Wind energy development located mostly on cropland, pasture

Monday, August 5, 2024

Researchers with USDA, Economic Research Service (ERS) studied the land cover associated with 34,073 wind turbines installed on rural land between 2012 and 2020. Nationwide, they found that around 96 percent of wind turbines were installed on cropland (56 percent) or pasture-rangeland (40 percent). In the Midwest, 94 percent of wind turbines were installed on cropland. In the Plains, sites were almost equally split between cropland (49 percent) and pasture-rangeland (50 percent). In the West, 69 percent were located on pasture-rangeland and 27 percent on cropland. The Atlantic was the only region with a large share on nonagricultural land; 75 percent were located on forest land. However, only a small share of turbines was in the Atlantic (3 percent), and fewer than 1,000 turbines were on land categorized as forest. Read about the expansion of wind and solar in rural areas of the contiguous United States, the regional distribution of renewable energy development, and the land cover change associated with development in the ERS report Utility-Scale Solar and Wind Development in Rural Areas: Land Cover Change (2009–20), released in April 2024.

Solar projects were located mostly on agricultural land between 2012 and 2020

Monday, July 22, 2024

More than 70 percent of large-scale, commercial solar development in rural areas occurred on agricultural land, either cropland or pasture-range land. Of the 3,177 solar projects installed between 2012 and 2020, the largest share was on cropland (43 percent). Another 28 percent of solar projects were installed on pasture-range land. Among regions studied, the Midwest had the highest share of solar installations on cropland at 70 percent, followed by the Atlantic at 43 percent and South at 37 percent. In the West and Plains, installations occurred mostly on pasture-range at 60 and 65 percent, respectively. The Atlantic region had the highest share of solar sites on forest land at 23 percent, while the Atlantic and South both had the highest share of solar installations on developed land at 6 percent. Sites in the South were the most diverse of all regions, with 37 percent categorized cropland, 17 percent as forest, 19 percent as pasture-range, and 21 percent categorized as other. Read about the expansion of solar and wind in rural areas of the contiguous United States in the USDA, Economic Research Service report Utility-Scale Solar and Wind Development in Rural Areas: Land Cover Change (2009–20), released in May 2024.

Wind energy development varies by region

Wednesday, May 29, 2024

As of 2020, large-scale, commercial wind energy development in the contiguous United States has been concentrated in areas with consistent, high wind speeds. Wind turbines are most prominent in the Plains, followed by the Midwest and West. While the regional distribution of wind energy development is influenced by State-level energy policy, one of the most important factors for development is the wind potential in a region. Some regions, such as the South, lack sufficient wind potential for large-scale development. USDA, Economic Research Service (ERS) researchers found that 90 percent of wind turbines in rural areas were installed on agricultural land (crop, pasture, or range land). Because the amount of land cover directly affected by wind turbines was small relative to the amount of farmland, and because farmers and ranchers can typically continue agricultural production near wind turbines after they are installed, land cover changed on only 4.8 percent of sites after installation. Some of this change was from one agricultural use to another, such as from cropland to pasture. The estimated footprint for wind farms was roughly 88,000 acres in 2020. For more about the expansion of wind and solar in rural areas of the contiguous United States, the regional distribution of renewable energy development, and the land cover change associated with development, see the ERS report Utility-Scale Solar and Wind Development in Rural Areas: Land Cover Change (2009–20), released in May 2024.

Following the Sun: solar energy development varies by region

Thursday, May 23, 2024

Solar energy development has been concentrated in the Atlantic and West regions of the United States, especially in California, North Carolina, and Massachusetts. These States are among those with policies that have promoted renewable energy development—much of it occurring in rural areas. Between 2016 and 2020, utility-scale solar capacity in rural areas more than doubled, increasing to 45 gigawatts, 3.7 percent of U.S. electric power capacity, and the number of solar projects increased from 2,316 to 3,364. Roughly 70 percent of the solar projects installed between 2009 and 2020 in rural areas were located on agricultural land. About 336,000 acres of rural land were estimated to have been directly affected by solar development. For more about the expansion of solar and wind in rural areas of the contiguous United States, the regional distribution of renewable energy development, and the land cover change associated with development, see the USDA, Economic Research Service report Utility-Scale Solar and Wind Development in Rural Areas: Land Cover Change (2009–20), released in May 2024.

Energy development payments to farmers vary by region

Wednesday, May 8, 2024

Energy markets experienced significant shifts beginning in the early 2000s, with price increases and technological improvements leading to a dramatic increase in oil and natural gas production, as well as wind energy development. Research by USDA, Economic Research Service shows that the Plains region had the largest share of farm producers receiving energy payments from energy developers for on-farm energy production, 7.40 percent, and the largest average annual payment, $39,087, between 2011–20. This region includes States with significant oil, natural gas, and wind energy production, such as Texas and Oklahoma, as well as a high proportion of farmers who own the oil and gas development rights to their land. The West and Atlantic regions have a far lower share of producers who received payments on average, 2.18 and 2.82 percent, respectively. Significant oil and gas production in the Atlantic is limited to Pennsylvania and West Virginia, and many producers in the West do not own their land’s oil and gas mineral rights, which can be legally separated from land rights. However, for those receiving payments, the average annual payments in the West and Atlantic regions were $31,821 and $29,015, respectively. These payments were near the national average of $30,482. The lowest proportion of farmers receiving energy payments was in the South, at 1.45 percent. Most Southern States have low potential for large-scale wind energy development and little onshore oil and natural gas development. In the Midwest, where there is little oil and gas production and more wind power, payments were less common, 2.34 percent, and producers received the lowest average payment, $10,953. Read more about the size, frequency, trends, and relative contribution of energy payments to farm operator income in the ERS report The Role of Commercial Energy Payments in Agricultural Producer Income, released in April 2024.

Energy payments to farmers rise and fall with oil prices

Monday, May 6, 2024

The amount of money farmers receive for leasing their land for the production of energy, such as oil, natural gas, or wind, varies significantly from year to year and has typically followed the price of oil. According to data analyzed by USDA, Economic Research Service (ERS) researchers, payments grew from an average of $38,788 in 2011 to $62,944 in 2013, when the price of oil averaged about $110 per barrel (adjusted for inflation), but then fell as low as $14,032 in 2020, when oil was near $40 per barrel. Not all farmers receive energy payments since many farm operators do not own their land, and even for those who do, subsurface mineral rights might have been separated from surface rights so that the farmer would not receive payments from on-farm energy production. For farmers who have historically benefited from energy, development of oil and natural gas have been a more common source of income than wind power, which is a younger industry. In the United States, about 3.5 percent of farm operations received energy payments between 2011 and 2020. Read more about the size, frequency, trends, and relative contribution of energy payments to farm operator income in the ERS report The Role of Commercial Energy Payments in Agricultural Producer Income, released in April 2024.

Agriculture accounted for an estimated 10.6 percent of U.S. greenhouse gas emissions in 2021

Tuesday, February 27, 2024

Farming activities in the United States accounted for 10.6 percent of U.S. greenhouse gas emissions in 2021. From 2020 to 2021, agricultural greenhouse gas emissions remained nearly constant but decreased from 11.1 percent to 10.6 percent as a share of total U.S. emissions because of changes in other industries. The U.S. Environmental Protection Agency estimated that in 2021, agriculture emitted 312.6 MMT as nitrous oxide (N2O), 278.4 MMT as methane (CH4), 44.7 MMT as on-farm carbon dioxide (CO2), and 35.7 MMT emitted indirectly through the electricity that the agricultural sector uses. Emissions include activities that emit nitrous oxide, such as fertilizer application and manure storage and management, and methane from enteric fermentation (a normal digestive process in animals). Of the common economic sectors in the United States defined by the Energy Information Administration, industry accounted for the largest portion of total greenhouse gas emissions (30.1 percent), followed by transportation, commercial, residential, agriculture, and U.S. territories (no specific consumption data can be attributed within the territories, so they are listed as a group). Total U.S. greenhouse gas emissions in 2021 were 2.3 percent lower than they were in 1990. This chart appears in the USDA, Economic Research Service topic page Climate Change.

Emergency Relief Program payments aiding U.S. crop producers concentrated in North Dakota and Texas

Wednesday, January 24, 2024

In 2020 and 2021, the United States experienced 42 disaster events that each resulted in damages of at least $1 billion, including hurricanes, drought, and wildfires. The Emergency Relief Program (ERP) provides funds to assist commodity growers who suffered losses from natural disasters in 2020 and 2021. As of January 2023, cumulative payments made through the ERP totaled $7.3 billion. USDA disbursed a large portion of this total, $1.16 billion, to North Dakota producers of corn ($322 million), soybeans ($309 million), and wheat ($268 million) who experienced flooding in 2020 and drought in 2021. Texas producers also received a sizable portion of payments, with cotton farmers receiving $510 million of the $909 million disbursed in that State. Producers in North Dakota and Texas received most ERP payments for losses in revenue, quality, or production as a result of moisture and drought that occurred during the 2020 and 2021 crop years. The remaining top States receiving ERP payments were South Dakota ($567 million), Minnesota ($463 million), and Iowa ($408 million), which, together with North Dakota and Texas, represented approximately 48 percent of the total ERP payments disbursed as of January 2023. In early 2023, USDA launched a second phase of the ERP program, but disbursements from this phase are not included in these totals. This chart first appeared in the USDA, Economic Research Service report U.S. Agricultural Policy Review, 2022, published in November 2023.

Irrigated agricultural acreage has grown, shifting eastward, while western irrigated acreage has declined

Wednesday, September 27, 2023

U.S. irrigated agriculture has seen regional changes in the past two decades, influenced by a variety of factors. From 1997 to 2017, total U.S. irrigated agricultural acreage increased by 1.7 million acres. Irrigated acreage grew primarily in the eastern United States, where agriculture production is historically rain-fed, and declined in the West, where a generally arid climate necessitates irrigation for most crops. In the East, increased frequency and severity of drought have driven farmers to move from rain-fed to irrigated production. In the West, farmers have begun to take irrigated land out of production as surface water supplies dry up, and they face increasing competition for water from growing urban centers. This chart was drawn from the USDA, Economic Research Service report Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity, published in December 2021.

Hurricanes in 2017 cut Puerto Rico’s agricultural sector revenue by 19 percent

Thursday, April 27, 2023

In September 2017, Hurricanes Irma and Maria caused major destruction across Puerto Rico’s agricultural sector. The destruction of infrastructure, operations, and crops led to an exodus of farmworkers, which further hampered the farm sector’s ability to recover. Data from the USDA, National Agricultural Statistics Service (NASS), Census of Agriculture, conducted every 5 years, show how the hurricanes impacted Puerto Rico’s farm income and expenses. Between 2012 and 2018, the number of farms declined by nearly 38 percent. Gross cash receipts—the sum of the sale of agricultural commodities, cash from farm-related income, and participation in Government farm programs—fell 19 percent in inflation-adjusted dollars from $718 million to $585 million. Cash expenses for Puerto Rican farms also decreased, falling 16 percent from $594 million to $500 million. Puerto Rico Planning Board’s data for net agricultural farm income, which includes non-cash income and expenses such as inventory changes, show a similar decline over the span of time that includes years not captured by NASS census data. From 2012 to 2020, net agricultural farm income (not adjusted for inflation) fell by $101 million. This chart first appeared in the USDA, Economic Research Service report, Puerto Rico’s Agricultural Economy in the Aftermath of Hurricanes Irma and Maria: A Brief Overview, April 2023.

Use of recycled and reclaimed water sources for irrigation varies across the United States

Wednesday, March 22, 2023

Water scarcity and water quality concerns in the United States have resulted in using nontraditional water sources, including recycled and reclaimed water, for irrigation. In 2018, producers used recycled and reclaimed water to irrigate crops on about 1.5 million acres in the United States, the most recent year for which data are available. Some acreage may use both recycled and reclaimed water for irrigation. California, Arkansas, Wisconsin, Ohio, North Carolina, Connecticut, and Massachusetts had the highest proportion of acreage where producers applied recycled or reclaimed water. In all these States, at least 3 percent of irrigated acreage relies on recycled or reclaimed water to meet crop irrigation needs. Reclaimed water for use on farms comes from sources such as industrial, municipal, and off-farm and on-farm animal operations. Municipal and on-farm animal operations were the most common sources of reclaimed water of the farms using reclaimed water in 2018. This chart was drawn from data collected by the USDA, National Agricultural Statistics Service.

Agriculture, including electricity use, accounted for an estimated 11.2 percent of U.S. greenhouse gas emissions in 2020

Monday, July 11, 2022

Farming activities in the United States accounted for 11.2 percent of U.S. greenhouse gas emissions in 2020. From 2019 to 2020, agricultural greenhouse gas emissions declined from 699 to 670 million metric tons of carbon dioxide equivalent but increased from 10.6 percent to 11.2 percent as a share of the U.S. economy. The Environmental Protection Agency estimated that in 2020 agriculture produced 5.6 percent as nitrous oxide (N2O), 4.2 percent as methane (CH4), 0.8 percent as on-farm carbon dioxide (CO2), and 0.6 percent emitted indirectly through the electricity that agriculture consumes. Emissions come from cropping activities that emit nitrous oxide, such as fertilizer application and manure storage and management, and enteric fermentation (a normal digestive process in animals), which produces methane. Of the economic sectors in the United States defined by the Energy Information Administration, industry (excluding agricultural emissions) accounted for the largest portion of total greenhouse gas emissions (30.3 percent), followed by transportation, residential, commercial, agriculture, and U.S. territories (no specific consumption data can be attributed within the territories, so they are listed as a group). This chart appears in the USDA, Economic Research Service data product Ag and Food Statistics: Charting the Essentials.

Irrigated cropping patterns in the United States have evolved significantly since 1964

Friday, March 25, 2022

Irrigated cropping patterns have shifted significantly in the United States during the past 50 years. In 1964, alfalfa hay and cotton were the most widely irrigated crops, but acreage under those crops has stayed relatively constant since then. Meanwhile, irrigated acres planted in corn for grain and soybeans have increased substantially. In 1964, farmers planted less than 2 million acres of irrigated land in corn for grain. By 2017, irrigated acreage planted in corn grew to more than 12 million acres, making corn for grain the most commonly irrigated crop. Over the same period, irrigated acreage planted in soybeans also increased substantially, from fewer than 1 million acres to nearly 10 million acres. The growth in irrigated corn and soybean acreage reflects, in part, increasing demand for these crops as feedstock sources for bioenergy production and feed for livestock operations, both domestically and abroad. Irrigated corn and soybean expansion also reflects a broader eastward shift in irrigated production acreage over the past five decades. This chart was drawn from the USDA, Economic Research Service report “Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity,” published December 28, 2021.

Use of surface or groundwater for irrigation depends on regional water availability, legal institutions, and infrastructure investments

Monday, March 14, 2022

Surface and groundwater are the two primary water supply sources for irrigated agriculture. Groundwater is pumped from aquifers, while surface water is diverted from natural streams, rivers, and lakes. The predominance of surface versus groundwater use varies regionally. Groundwater is the most common source of water applied for irrigation in the Mississippi Delta, Northern Plains and Southern Plains regions. The prevalence of groundwater-fed irrigated agriculture in the Northern and Southern Plains relates to the regions’ historically abundant groundwater resources. The High Plains Aquifer, the largest aquifer in North America and also known as the Ogallala Aquifer, underlies significant portions of the Plains regions. The Mississippi Delta region also has abundant groundwater resources that are relatively shallow, making groundwater-based irrigation less expensive. Irrigated agriculture relying on surface water is most prevalent in the Mountain and Pacific regions. The extent of surface water use for irrigation in these regions reflects past Federal, State, and local investments in water conveyance and storage infrastructure, as well as characteristics of the regions’ legal institutions which grant water rights based on historical beneficial use rather than ownership of land along streams and rivers. This chart was drawn from the USDA, Economic Research Service report “Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity,” published December 28, 2021.

Use of irrigation systems vary by crop

Wednesday, March 2, 2022

Irrigation methods vary by crop because of differences in production practices, crop value, water source, and soil characteristics. Irrigation application methods can be broadly categorized as either gravity or pressurized systems. Pressurized irrigation systems apply water under pressure through pipes or other tubing, while gravity irrigation systems use field slope to advance water across the field surface. In general, pressurized irrigation systems are more efficient than gravity irrigation systems under most field settings, as less water is lost to evaporation and seepage. Rice has the largest share of acres irrigated by gravity systems, which is related to the flooding requirements of most rice production systems in the United States. Peanuts have the largest proportion of acres irrigated by pressurized systems. Peanut cultivation is concentrated in the Southeastern United States (i.e., Alabama, Georgia, and Florida), where the prevalence of sandy, well-drained soils makes gravity irrigation methods generally unsuitable because of seepage losses. Pressurized systems are also prevalent among high-value specialty crops, such as vegetables and orchards. Pressurized irrigation systems, particularly low-flow micro irrigation systems, are generally more expensive than gravity irrigation systems, precluding their use among lower value crops. Pressurized systems are also more prominent among crops concentrated in regions more reliant on groundwater, including irrigated corn across the Eastern and Central United States. This chart was drawn from the USDA, Economic Research Service report “Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity,” published December 28, 2021.

Per acre water use in irrigated farmland shows a declining trend

Wednesday, January 19, 2022

The importance of irrigation for the U.S. agricultural sector has evolved significantly over the past century. Irrigated acreage in the country has grown from fewer than 3 million acres in 1890 to more than 58 million acres in 2017. The expansion of irrigated acreage during this period reflects Federal, State, and local investment in irrigation infrastructure to deliver surface water to farms and ranches. Additionally, this expansion is partly due to advancements in well drilling and pumping technologies, which have facilitated growth in groundwater-based irrigated agriculture. Since 1969, the amount of water used per acre irrigated has decreased substantially. The average water use per acre irrigated was more than 2 acre-feet (1 acre-foot = 325,851 gallons) in 1969, which declined to nearly 1.5 acre-feet by 2018. Efficient water application technologies, such as the transition from gravity-based to pressurized irrigation systems, have driven the reduction in water use per acre of irrigated land. This chart was drawn from the USDA, Economic Research Service report “Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity,” published December 2021.

The distribution of U.S. irrigated acreage has shifted eastward since mid-20th century

Tuesday, January 4, 2022

Regional distribution of U.S. irrigated acreage changed significantly from 1949 to 2017. Trends in irrigated cropping patterns, technological advances, water availability, and changing growing-season weather drove this evolution. The arid Mountain and Pacific regions consistently irrigated the most farmland until 2007, when irrigated acreage in the Northern Plains region surpassed acreage in the Pacific region. Irrigated acreage in the Mountain and Pacific regions remained relatively constant over the 70-year period, despite increasingly limited opportunities for additional water development and increasing competition for water from non-agricultural sectors. The Northern Plains region has experienced the most substantial increase in irrigated acreage, expanding from less than 2 million acres in 1949 to nearly 12 million acres in 2017. The expansion of irrigated acreage in the Northern Plains is related to advances in groundwater pumping technologies, the diffusion of center pivot irrigation application systems, and the region’s abundant aquifer resources. The Southern Plains region experienced similar growth in irrigation until the 1980s, when dwindling groundwater supplies resulted in irrigated acreage declines. The Mississippi Delta and Southeast regions also have expanded irrigated acreage since 1949 reflecting, in part, changing cropping patterns, abundant aquifer water supplies, and producer responsiveness to changing precipitation levels during growing seasons. This chart was drawn from the USDA, Economic Research Service report Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity, published December 2021.