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Agricultural production is sensitive to changes in energy prices, either through energy consumed directly or through energy-related inputs such as fertilizer. A number of factors can affect energy prices faced by U.S. farmers and ranchers, including developments in the oil and natural gas markets, and energy taxes or subsidies. Climate change policies could also affect energy prices as a result of taxes on emissions, regulated emission limits, or the institution of a market for emission reduction credits. Here we review the importance of energy in the agricultural sector and report the results of a case study on the economic implications for the farm sector of energy price increases that would arise from plausible, constructed greenhouse-gas-emission reduction scenarios. Higher energy-related production costs would generally lower agricultural output, raise prices of agricultural products, and reduce farm income, regardless of the reason for the energy price increase. Nonetheless, farm sector impacts were modest for the scenarios and time periods examined. We demonstrate the unique distribution of effects resulting from price (or cost) increases for different types of energy due to pricing their carbon content, as well as the relative use of energy in production of different agricultural commodities. Our analysis focuses on relatively short-term adjustments to higher energyrelated costs and does not include potential financial benefits from sequestering carbon or reduced climate change. Finally, we find that agricultural sector impacts on farming-dependent counties would not be substantial but would be potentially largest where education and employment levels are relatively low, while effects on rural communities due strictly to energy production adjustments would be concentrated in the few U.S. counties with significant employment in energy extraction industries.
Agricultural production is one of the cornerstones of Nebraska's economy and acts as a driver for the state's economy. Nebraska's geography, infrastructure, and industry all support agriculture, and many industries within the state depend on the labor and goods from agricultural producers. In recent years, prices for agricultural commodities have become increasingly volatile, with fluctuations rising and falling much more intensely than in previous years. Global supply and demand for agricultural commodities continues to increase, especially major commodities produced in Nebraska such as corn, soy, and cattle, and it is likely that price volatility will continue to occur. The impacts of this price volatility are being felt across the state, especially as agricultural commodity prices trend downward. Nebraska's agricultural producers are increasingly unable to break even on their operations, and Nebraska lawmakers are facing a budget shortfall caused in large part by the reduced income received from agricultural production and its ancillary effects. The problem facing Nebraska is incredibly complex, as negative downstream effects are being caused by low commodity prices received by agricultural producers. Policy mechanisms are available to Nebraska lawmakers to manage this problem, but have the ability to exacerbate things if the careful planning and implementation of these policy mechanisms is not conducted. This thesis aims to help define some of the dynamic impacts being felt in the state of Nebraska from global volatility of agricultural commodity prices, and think about these impacts long term. This thesis approaches these issues from a systems thinking perspective, attempting to capture a holistic viewpoint of the major impacts felt in the state now and the potential impacts in the future. An exploratory system dynamics model has been created to explore these dynamic issues and the impacts that different policy mechanisms might have on the state. This thesis by no means provides the "answer" for how to insulate the state of Nebraska from these negative impacts, but offers a first step towards long term systems thinking on the issue.
This comprehensive overview of local food systems explores alternative definitions of local food, estimates market size and reach, describes the characteristics of local consumers and producers, and examines early indications of the economic and health impacts of local food systems. Defining ¿local¿ based on marketing arrangements, such as farmers selling directly to consumers at regional farmers¿ markets or to schools, is well recognized. Statistics suggest that local food markets account for a small, but growing, share of U.S. agricultural production. For smaller farms, direct marketing to consumers accounts for a higher percentage of their sales than for larger farms. Charts and tables.
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