U.S. Agriculture is leading the recovery from the recession.

While most services and manufactured products are discretionary purchases for consumers and businesses, FOOD is MANDATORY. This mandatory purchase retains economic viability in EVERY economy, even in the depths of recession. Only water is more essential to human life.

The United States agricultural industry is America's foremost source of food. (A modest percentage of U.S.-consumed food is imported).

In addition to its essential role in Ameican life , the United States agricultural industry is also the WORLD's foremost source of exported/imported food.

With its decisive role as America's chief reliable export -- and its resulting role as America's most reliable commercial resource for improving the U.S. balance of trade, and empowering domestic economic recovery -- U.S. Agriculture is one of the most dominant powerful, productive and positive forces in the current U.S. Economy.

Ag Market Demand:
  Key factors of production:
    Bulk Fluids & Energy

Bulk fluids and energy consumption (often connected) are key factors of production in U.S. agriculture, and provide one of the principal areas most ripe for development of entrepreneurial activity in agriculture-support industries.

U.S. Agriculture is one of the nation's chief consumers of bulk liquids -- particularly for energy, fertilizing and crop protection.

Bulk fluid distribution is one of the major activities in agricultural support industries (particularly ag-supply co-ops) -- especially in the supplying of :

• Fuels [motor]:
  • diesel
  • gasoline
  • ethanol / E-85
• Propane / LP gas
• Heating oil (Eastern U.S.)
• Lubes & Oils for machinery.

Energy Input Expenses
as Share of Total Operating Costs:

[Energy] expenses, from direct and indirect energy use, make
total energy expenditures 15%
of U.S. agriculture's operating costs. ...

• Beef cattle operations consume large amounts of fuel nationally,
  -- but have small energy expenses per farm.

• The potential impacts, on farm profits, from changes in energy prices,
  are greatest for feed grain and wheat producers.

• Crops with the highest energy input costs per acre
  generally do not have the highest share of
  [total] operating costs from energy inputs. For example:

  • the high energy costs for rice producers
    accounted for 42% of total operating costs.

  • In contrast, energy input costs for wheat production
    accounted for 52% of total operating costs in 2004.

  • Other commodities with a high share (44% or more) of operating costs from energy inputs are wheat, corn, grain sorghum, and oats.

• Rising energy prices make cotton and soybeans more attractive alternatives
  to other crops (for which energy represents a higher share of total operating costs).

  • Per-acre Energy input costs are lowest for soybean production ($18),
    which comprised 22% of total operating costs in 2004.

  • Energy input costs for cotton, at $64 per acre,
    were among the highest of major field crops ...

* * *

Variation in the regional distribution of energy input costs suggests that
changes in energy prices would most affect producers
in regions where irrigation is indispensable for crop production.

Corn, soybean, wheat, cotton, grain sorghum, and peanut producers
in the Prairie Gateway
have a higher share of total operating costs from direct energy costs
than do producers in other regions
-- partly due to irrigation expenses.

The higher energy input costs in this region are mainly due to
additional fuel costs associated with irrigation.

* * *

(From the article "Agriculture and Rural Communities Are Resilient to High Energy Costs," in the journal "Amber Waves" of the Economic Research Service, USDA, April 2006)

Bulk fluids as energy inputs:

For a basic grasp of the extent to which bulk fluids, for energy alone, dominate the world of agriculture, consider the following collection of information from a detailed report by the U.S. Dept. of Agriculture (USDA):

In the agricultural sector, energy expenditures for gas, diesel, electricity, and other inputs have increased over time and vary by major commodity produced.

* * *

Energy consumption,
Direct & Indirect:

Direct energy consumption in the agricultural sector includes use of

 gas[oline],

 diesel,

 liquid petroleum (LP),

 natural gas, and

 electricity.

Indirect energy use involves agricultural inputs , which have a significant energy component associated with their production -- such as nitrogen fertilizer, and, to a much lesser extent, pesticides.

Direct Energy Consumption:

Since 1992, direct fuel and electricity expenses for U.S. farms have averaged around 7% of total operating costs.

Diesel fuel and gasoline are widely used for tillage, planting, transportation, and harvesting.

Electricity, LP, gas, and natural gas are primarily used in drying; irrigation; operation of livestock, poultry, and dairy facilities; and onfarm processing and storage of perishable commodities.