1 Direct Farm Fuel Expenses, Results from a Large Farm Survey Robert W. Dubman Survey and Data Coordinator USDA/Economic Research Service

2 Which farms are most vulnerable from rising prices of fuels? Direct immediate impact Excludes effects on fertilizer expenses or other inputs Excludes product price changes Assumes farmers may be purchasing in bulk or from cooperatives

3 USDA’s Agricultural Resource Management Survey (ARMS) Roughly 10,000 samples annually Phase III –Collects farm financial data –Produces Income statements, balance sheets, and measures of financial performance –Personally enumerated

4 Details asked in most years Gasoline Diesel Natural gas LP gas Other fuels Electricity Questions on whole farm fuel expenses asked annually

5 Since 1991, about 5 cents of every dollar of cash expenses went to purchased fuels (gas, diesel, natural gas, LP gas, lubes, and other fuels) Source: 1991 to 2002 ARMS/FCRS

6 Diesel fuel appears to have gained favor. In average diesel expenses were twice average gasoline expenses Source: 1991 to 2002 ARMS/FCRS

7 Region/State Size of operation Major commodity produced Farm operator typology Survey can categorize farms many ways

8 In 2002, average diesel expenses were highest in Northern Plains. Average gasoline expenses were highest in the mountain region Source: 2002 ARMS

9 Gasoline as part of total cash expenses was highest for farms in the Delta region Diesel as part of total cash expenses was highest for farms in the Southern Plains Source: 2002 ARMS

10 Larger farms, based on sales, spent more on diesel fuel than gasoline in 2002 Source: 2002 ARMS

11 Diesel and gasoline expenses as a percentage of total cash expenses are lower for the larger farms Source: 2002 ARMS

12 Rice, Cotton, Peanut, Vegetable, and Dairy farms had the highest average diesel and gasoline expenses Source: 2002 ARMS

13 Rice, wheat, peanuts, and soybeans specialized farms have the highest proportion of diesel expenses to total cash expenses On average, specialized crop farms show higher diesel and gasoline expenses compared to total cash expenses Source: 2002 ARMS

14 USDA’s Agricultural Resource Management Survey has a wealth of data on farm fuel expenses. Much more than can summarized in a presentation. Multiple years, more breakdowns of fuel types, different categories, and links to the financial performance of the farm operations are available. Expenses can be translated into physical units and into BTUs. Please contact me at ERS if this data could help your research.