Share Of Electricity Expenses Vary By Farm Size And Principal Commodity

Oct 14, 2016

Farms rely on electricity to power many essential systems, including irrigation, ventilation, and heating and cooling. Sometimes, due to seasonal demand, farms pay high prices for electricity. How much farms spend on electricity as a percentage of total expenses in a given year varies with farm size and principal commodity. In 2014, the highest share of electricity expenses by commodity were on farms concentrating on the production of peanuts (5.5 percent).

By farm size, small poultry producers had the highest share of electricity expenses, 12.8 percent—about 8 times more than large poultry producers. With the exception of peanut producers, large farms had the lowest shares of electricity expenditure among all farm sizes.

Large peanut producers likely had a higher share of electricity expenses compared to small producers because irrigation and on-farm drying of harvested peanuts were more economical on large farms.

Share of electricity expenses vary by farm size and principal commodity

Source:usda.gov

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