If you like food, then you should like natural gas Image By Dan Romito The relationship between natural gas and agricultural productivity is a vital yet often overlooked aspect of modern farming. In short, we are now producing far more with far less. Over the past century, the U.S. has seen remarkable agricultural output growth, largely thanks to technological advancements and the use of nitrogen-based fertilizers, which rely heavily on natural gas. In 1920, the United States had approximately 965 million acres of farmland and 6.4 million farms. By 2023, these numbers had declined to about 895 million acres of farmland and fewer than 2 million farms. Despite this reduction in farmland and farms, agricultural productivity has grown by more than 500% over the last century. This transformation highlights the increasing efficiency of American agriculture. How natural gas fits in A striking example of this productivity is the improvement in crop yields. Corn yields have increased from 20-30 bushels per acre a century ago to 170 bushels per acre today. Similarly, wheat yields have grown from 12 bushels per acre to 50 bushels per acre, while soybean yields have risen from 11 bushels per acre to 50 bushels per acre. These advancements would not have been possible without the widespread adoption of nitrogen-based fertilizers. Nitrogen-based fertilizers are indispensable in modern agriculture because they provide essential nutrients for plants to thrive. These fertilizers significantly boost crop yields by enhancing soil fertility and promoting healthy plant growth. However, the vast majority of people fail to realize that the production of nitrogen-based fertilizers is deeply dependent on natural gas. Natural gas is critical in producing the hydrogen and ammonia required for nitrogen-based fertilizers. The Haber-Bosch process, which industrialized the ability to synthesize ammonia necessary to facilitate the expansion of nitrogen-based fertilizers, is mainly responsible for this feat. This process relies heavily on natural gas as a feedstock and an energy source. Approximately 70-90% of the hydrogen used in global ammonia production is derived from natural gas, making it an indispensable resource for fertilizer manufacturing. The reliance on natural gas is not merely a matter of convenience but of efficiency and cost-effectiveness. Natural gas provides the most practical and economical means of producing the large quantities of hydrogen needed for fertilizer production. This reliance ensures that fertilizers remain affordable for farmers, which helps keep food prices stable for consumers. More importantly, food demand will continue to rise as the global population increases. The world will increasingly look to the United States for even more types of security, including food and agriculture. A critical ingredient The connection between natural gas and food production underscores the importance of this energy source in sustaining global agriculture. Without natural gas, agricultural output would become significantly more expensive and less efficient, reducing productivity, increasing food costs, and adversely expanding food insecurity. In a world where the demand for food continues to rise due to population growth, the role of natural gas in agriculture cannot be overstated. It is a cornerstone of modern farming practices, enabling farmers to achieve high yields and ensure food security. For those who value the availability and affordability of food, understanding the critical role of natural gas in agriculture is essential. By supporting the infrastructure and technologies that facilitate using natural gas in fertilizer production, we can continue to advance agricultural productivity and meet the needs of a growing global population. Dan Romito is managing director overseeing the Consulting & Advocacy practice at Pickering Energy Partners. He previously worked at Nasdaq, and his writing has been published in Harvard Business Review, Bloomberg and CNBC. *The opinions expressed in this column are those of the author and do not necessarily reflect the views of EnergyPlatform.News.
