Energy Problems and Alternatives: Implications for the South

Though agriculture in the United States has been looked upon as being technically efficient in terms of output per unit of labor, it is not nearly as efficient in terms of output per unit of liquid fuels consumed (Debertin, Pagoulatos, and Boadu; Pagoulatos and Timmons). In this article, we examine the potential for substituting other inputs for liquid fuels in the agricultural production process. Studies of elasticities of substitution between energy and other inputs are reviewed. On the basis of these studies, we suggest possibilities for using other inputs instead of liquid fuels in agriculture. We present recent research results relating fuel use to tractor prices and horsepower. We compare Kentucky counties in terms of their energy use in relation to their mix of agricultural enterprises and mechanization levels. Finally, we speculate on the potential impacts of significant increases in real fuel prices on the major agricultural enterprises in the South.