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The Impact of Rising Energy Costs on Agricultural Production and the Regional Economy: A Case Stufy of Saskatchewan

Author

Listed:
  • Kulshreshtha, S. N.
  • Tewari, D. D.
  • Johnson, T. G.

Abstract

Higher energy prices, particularly those for crude oil, have been a worldwide reality since the creation of the Organization of Petroleum Exporting Countries (OPEC). Since many of the inputs in agriculture are either petroleum products or largely petroleum based, the agricultural industry has faced an unprecedented rise in input costs. Canada is no exception to this trend. By the third quarter of 1981, fertilizer prices had increased to 387.1 percent of their 1971 price level. Similarly, the price of fuel jumped to 279.3 percent of its 1971 level. Trends in the future may be even more dramatic. According to the Alberta Agreement,2 the price of oil will increase from $21.25 per barrel in October 1981, to $57. 75 by October 1986--an increase of 172 percent. For Saskatchewan, primarily because of the predominance of grains in the total agricultural production, 3 rising energy costs appear to be a threat to the future viability of the industry.

Suggested Citation

  • Kulshreshtha, S. N. & Tewari, D. D. & Johnson, T. G., 1983. "The Impact of Rising Energy Costs on Agricultural Production and the Regional Economy: A Case Stufy of Saskatchewan," 1983 Occasional Paper Series No. 3 197308, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaaeo3:197308
    DOI: 10.22004/ag.econ.197308
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    References listed on IDEAS

    as
    1. Dhillon, Pritam S., 1981. "Impact of Increased Energy Costs on Greenhouse Tomato Production," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 10(2), pages 1-5, October.
    2. Debertin, David L. & Pagoulatos, Angelos, 1980. "Energy Problems and Alternatives: Implications for the South," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 12(1), pages 47-56, July.
    3. David Holland, 1980. "Energy and the Structure of Agriculture: A Political Economic Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(5), pages 972-975.
    4. Casavant, Kenneth & Whittlesey, Norman K., 1974. "Increasing Energy Prices: The Impact on Transportation Costs and the Regional Location of Agricultural Production," WAEA/ WFEA Conference Archive (1929-1995) 323809, Western Agricultural Economics Association.
    5. Carter, H.O. & Youde, J.G., 1974. "Some Impacts Of The Changing Energy Situation On U.S. Agriculture," 1974 Annual Meeting, August 18-21, College Station, Texas 284571, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Dhillon, Pritam S., 1981. "Impact of Increased Energy Costs on Greenhouse Tomato Production," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-5, October.
    Full references (including those not matched with items on IDEAS)

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