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The Agriculture Energy Alliance (AEA) represents a broad-based coalition of farm organizations and agribusinesses that face a crisis because of public policies that have created a demand for natural gas while at the same time restricted access to supply sources.

The farm sector depends on significant amounts of natural gas for food processing, irrigation, crop drying, heating farm buildings and homes, and production of crop protection chemicals and nitrogen fertilizers.

By far, the most intensive use of natural gas by the farm sector is in the production of nitrogen fertilizer, which is used on virtually every crop produced in this country. The food that we grow, consume and sell to the world depends on a ready supply of fertilizers like ammonia, urea and diammonium phosphate. An estimated 40 percent of U.S. crop production is directly attributed to the use of commercial fertilizers. 

High natural gas prices remain the most serious threat to the fertilizer sector and to farmers since the energy shocks of the 1970s.   American farmers and agribusiness need an increase in supply and a resulting reduction in price to ensure an adequate and stable domestic supply of nitrogen fertilizer into the future. 

 

The AEA works to inform and educate Congress, the Administration and state-elected officials about the challenges facing our sector. We also work to encourage elected and appointed officials to continue the good work begun in the Energy Policy Act of 2005 and take further measures to reduce gas demand and increase gas supply.