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Recent ERS Research on Pesticide Issues

"Phasing Out Registered Pesticide Uses as an Alternative to Total Bans: A Case Study of Methyl Bromide," Journal of Agribusiness, Vol. 15, No. 1, 1997. (Walt Ferguson, Jet Yee) This article examines how a phase-out strategy, in place of an immediate ban on all crops, would affect consumers and producers and still achieve much of the human health and environmental benefits of an immediate and total ban.

Agricultural Chemical Usage, 1995 Fruits Summary (Ag CH1 96), July 1996. This report continues a series of biennial reports of chemical use on most fruit commodities produced in the United States. This summary contains state estimates of primary nutrients and pesticide active ingredients use in the on-farm production of these commodities.

Agricultural Chemical Usage, 1995 Field Crop Summary. (Ag CH 1 96), March 1996. This report continues a series of annual field crop summaries since 1990 that estimate on farm fertilizer and pesticide use on U.S.-produced corn, cotton, potatoes, soybeans, and wheat. This summary contains State estimates of the primary nutrients and pesticide active ingredients used in the production of these commodities.

Pesticide Residues, Reducing Dietary Risks. AER-728, Jan. 1996. (Fred Kuchler, Katherine Ralston, Laurian Unnevehr, Ram Chandran) New data on pesticide residues, food consumption, and pesticide use are used to analyze the sources of consumers' dietary intake of pesticide residues and the benefits of research to develop safer alternatives to pesticide use. This study reports that canceled but persistent chemicals appear among the highest risk indicators; postharvest uses account for the largest share of dietary intake of residues; residue levels vary among domestic and imported commodities; and consumption patterns, especially those of children, influence risks from pesticide residues.

Regulation, Innovation, and Market Structure in the U.S. Pesticide Industry. AER-719, 1995. (Michael Ollinger, Jorge Fernandez-Cornejo) This report examines how EPA regulation affects new chemical pesticide registrations, new chemical pesticide safety and use, industry composition, and technology choice.

"The Effect of Feedgrain Program Participation on Chemical Use." Agricultural and Resource Economics Review, Oct. 1995. (Marc Ribaudo, Robbin Shoemaker) This journal article addresses whether commodity programs create economic incentives and conditions that result in higher per-acre use of chemicals than would occur under free-market conditions. The feedgrain program appears to provide incentives for participants to apply more fertilizer and herbicides than nonparticipants.

Agricultural Chemical Usage, 1994 Vegetable Summary. (Ag CH1 95), July 1995. This report continues a series of biennial reports of chemical use on most vegetable commodities produced in the United States. This summary contains State estimates of primary nutrients and pesticide active ingredients used in the on farm production of these commodities.

Pesticide and Fertilizer Use and Trends in U.S. Agriculture. AER-717, May 1995. (Biing-Hwan Lin, Merritt Padgitt, Len Bull, Herman Delvo, David Shank, Harold Taylor) Trends in fertilizer and pesticide use since 1964 along with economic analysis of factors influencing agricultural chemical use are contained in this report.

Adoption of Integrated Pest Management in U.S. Agriculture. AIB-707, Sept 1994. (Marc Ribaudo, Robbin Shoemaker) This report summarizes information on the extent of adoption of integrated pest management (IPM) techniques in the production of fruits, vegetables, and major field crops. Levels of IPM vary widely among crops and regions, but about half of all fruit, vegetable, and major field crop acreage uses some IPM techniques.

Atrazine: Environmental Characteristics and Economics of Management. AER-699, 1994. (Marc Ribaudo, A. Bauzaher) This report presents the costs and benefits of an atrazine ban, a ban on pre-plant and preemergent applications, and a targeted ban to achieve a surface water standard. A complete atrazine ban is hypothesized to be the costliest strategy, while the targeted strategy is the least costly.

Economic Effects of Banning Methyl Bromide for Soil Fumigation. AER-677, 1994. (Walt Ferguson, A. Padula) This report estimates the consequences for producers and consumers of banning the use of methyl bromide for agricultural uses.

(Contact to obtain reports: Merritt Padgitt, (202) 219-0433 [mpadgitt@econ.ag.gov])

PRODUCTION INPUTS

3.3 Energy

Agriculture uses energy directly for operating machinery
and equipment on the farm and indirectly in fertilizers
and pesticides produced off the farm. Since a 1978
peak, total energy use in agriculture (excluding
electricity) fell by 25 percent to 1.6 quadrillion British
thermal units (Btu) in 1993, due to improved energy
efficiency. An additional 1 quadrillion Btu of energy is
used by the food processing industry. Agriculture also
supplies renewable energy in the form of biomass for
electricity generation and as feedstocks, mostly corn, for
production of alternative fuels such as ethanol.

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different activities in food production. Energy used to produce food is classified as either direct or indirect. Direct energy, mostly refined petroleum products, is used on farms for planting and harvesting, fertilizer and pesticide application, and transportation, while electricity is used for irrigation and other purposes. Dairies require a major input of electricity for cooling milk, operating milking systems, and supplying hot water for sanitation. Indirect energy, on the other hand, is consumed off the farm for manufacturing fertilizers and pesticides. In addition, substantial amounts of energy, including natural gas, oil, electricity, and coal, are used in manufacturing or processing of food after it leaves the farm. Most food processing firms use energy to provide steam, hot water, and process heating.

The agricultural sector also supplies energy. The Clean Air Act Amendment of 1990 (CAA) has increased the demand for ethanol-already used as a fuel extender and octane enhancer-by requiring oxygenates in about 35 percent of the Nation's gasoline. Ethanol primarily uses corn as a feedstock, but can use other biomass as well. On a larger scale,

biomass from agricultural and forestry sources is used directly as fuel for electricity generation.

Energy Use in Agricultural Production

Agricultural energy use peaked at 2.2 quadrillion Btu
in 1978. However, oil price shocks during the late
1970's and early 1980's forced farmers to become
more energy-efficient. Many farmers have switched
from gasoline-powered to fuel-efficient diesel-
powered engines, adopted energy-conserving tillage
practices, shifted to larger multifunction machines,
and adopted energy-saving methods of crop drying
and irrigation. Between 1978 and 1993, energy
(excluding electricity) used by agriculture declined 25
percent, primarily due to a reduction in the direct use
of energy (gasoline, diesel, liquefied petroleum or LP
gas, and natural gas); energy used to produce
fertilizers and pesticides declined only slightly.
(Separate electricity expenditures in agriculture have
not been available since 1991.)

In addition, the composition of energy use has changed significantly. Gasoline use has dropped from 42 percent of total energy use in 1965 to only 11 percent in 1993, while diesel's share of diesel fuel has risen from 13 percent to 29 percent (fig 3.3.1). This

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Demand for refined petroleum products such as diesel fuel, gasoline, and LP gas in agricultural production is determined mainly by the number of acres planted and harvested, price of energy, and weather. Farm fuel use in 1994 was greater than in 1993. Diesel fuel use, at 3.5 billion gallons, was up 6 percent from 1993 while LP gas, at 0.9 billion gallons, increased 3 percent (table 3.3.1). This increase was due principally to lower fuel prices and a slight increase in the number of acres planted and harvested. Gasoline consumption, at 1.4 billion gallons, was unchanged from the 1993 level.

Farm fuel prices in the United States are heavily influenced by international market conditions, particularly crude oil supplies by the Organization of Petroleum Exporting Countries (OPEC). Historically, each 1-percent increase in the U.S. price of imported crude oil has translated into a 0.7-percent rise in the farm price of gasoline and diesel fuel. Following the Arab Oil Embargo of 1973-74, world oil prices rose rapidly. They escalated again due to the Iranian crisis in 1979, peaked in 1981, then fell

1 Excludes Alaska, Hawaii, and fuels used for household and personal business.

Source: USDA, ERS, based on NASS, Farm Production
Expenditures Summaries, and unpublished data.

steadily until 1985, and fell sharply in 1986 due to a glut of oil in the world market. Oil prices rose sharply again in 1990 and 1991 following the Persian Gulf war and have since been falling gradually. Farm gasoline prices mirrored world oil prices, rising, for example, from 47 cents per gallon in 1974 to $1.29 in 1981. Between 1992 and 1994, gasoline prices fell steadily, then rose slightly in 1995 (table 3.3.2). During the first half of 1996, gasoline prices were on the rise due to increased seasonal demand.

Farm fuel expenditures represented 3.5 percent of total farm production expenses in 1994, down from 3.6 percent in 1993 (table 3.3.3). In 1994, farm fuel expenditures totaled $5.55 billion, an increase of less than 1 percent from 1993. An increase in the number of acres planted and harvested in 1994, even with lower energy prices, accounted for this slight increase in total expenditures. The Corn Belt, at $1.02 billion, was the farm production region with the highest total energy expenditures, followed by the Northern Plains at $704 million (fig. 3.3.2). Farm expenditures for

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Source: USDA, ERS, based on NASS, Farm Production Expenditures, 1980-1994 Summaries. Data for 1992-94 are from the NASS, unpublished data.

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1 Only the eight largest subcategories of food and kindred products are shown.

2

"Net electricity" is the sum of purchases in and generation from noncombustible renewable resources, minus quantities sold and transferred out. 3 Includes Nos. 1, 2, and 4 fuel oils and Nos. 1, 2, and 4 diesel fuels.

4 Includes natural gas obtained from utilities, transmission pipe lines, and any other supplier(s) such as brokers and producers.

* Estimate less than 0.5.

Q = Withheld because of relative standard error greater than 50 percent.

W = Withheld to avoid disclosing data for individual establishments.

Source: USDA, ERS, based on U.S. Department of Energy/Energy Information Administration, 1994.

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