Want to Boost the Ag Sector?
Build New Pipelines
Elaine Kub
Agriculture relies on affordable energy to stay
competitive. The cost of crude oil and natural gas
directly impacts farmers’ ability to maintain a healthy
bottom line, driving the costs of necessary expenditures
like diesel fuel, irrigation, fertilizer, lubricants and more.
In the past five years, crude oil production in the U.S.
has skyrocketed, bringing a surge of economic activity.
Our country will surpass Saudi Arabia and Russia as the
world’s most prolific producer of fossil energy in 2015.
For the first time in decades, the once vaporous concept
of American “energy independence” is within reach.
The boom has been good news for farmers, helping
to keep energy prices and operating costs under control.
But it has also brought some growing pains – especially
in the Midwest – due in large part to the strain that
greater production has placed on the region’s freight
transportation infrastructure. The increase in crude
oil trains has reduced the freight capacity available to
transport grain and other commodities. Without action,
the future of shipping agricultural goods will be defined
by delays, price spikes and uncertainty.
I recently partnered with the American Farm Bureau
Federation to attempt to quantify the financial impact of
regional transportation strain on farmers in the Midwest.
We found that the surge in crude oil traffic – combined
with other factors, – caused millions of dollars of losses
see Pipelines, page 22
West Virginia Farm Bureau News 15