LUBBOCK, TEXAS (RFD NEWS) — Rising electricity demand tied to data centers is emerging as a major driver of long-term energy markets, with implications for agriculture through increased demand for fuel, fertilizer, and biofuels.
According to the U.S. Energy Information Administration’s Annual Energy Outlook 2026, overall U.S. energy consumption is expected to remain flat or decline slightly through 2050 due to efficiency gains, even as the economy grows. However, electricity demand is projected to increase steadily, largely driven by the expansion of data center infrastructure.
To meet that demand, generating capacity is expected to rise 50-90 percent by 2050. Natural gas, wind, and solar are projected to supply the majority of that growth, while coal continues to decline under most policy scenarios. Natural gas production is expected to increase significantly, supporting both domestic use and exports.
For agriculture, energy trends remain closely tied to input costs. Higher demand for electricity and natural gas can influence fertilizer production costs, while stable oil production may help moderate diesel prices over time.
Ethanol and other biofuels remain part of the broader energy mix, particularly as policy and technology evolve.
Farm-Level Takeaway: Shifts in energy demand will influence fuel, fertilizer, and input costs.
Tony St. James, RFD News Markets Specialist
In part six of his blog series,"Top 10 Developments in Ag Law and Tax in 2023,” farm legal expert Roger McEowen tackles issue #2, foreign ownership of ag land.
February 02, 2024 08:00 AM
·
In part four of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen tackles issue number four, the Employment Retention Credit.
January 31, 2024 09:00 AM
·
In part three of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen covers the Corps of Engineers’ mismanagement of Missouri River water levels.
January 30, 2024 02:29 PM
·
Two more key developments in ag law and taxation from 2023, a crackdown on biodiesel fraud and developments in self-employment taxation (#7 and #6), are the topic of today’s Firm to Farm blog post, the second in a series by RFD-TV agri-legal expert Roger McEowen.
January 18, 2024 12:44 PM
·
The start of the review of the most important ag law and tax developments of 2023—that is the topic of today’s Firm to Farm blog post by RFD-TV agri-legal expert Roger A. McEowen
January 04, 2024 12:20 PM
·
Just how much are probate fees? How are they determined? That is the topic of today’s Firm to Farm blog post by RFD-TV’s Agri-Legal Expert Roger A. McEowen.
December 12, 2023 11:23 AM
·
