These cost increases when considered separately do not seem that high, however, the cumulative impact has caused considerable hardship for farmers. Farmers are not able to pass along their higher costs and so they must absorb them. And, perhaps most distressing for farmers is the fact that energy as a percent of the total costs of production had been decreasing since 1981. Now, at a time with low commodity prices, farmers are faced with rising costs over which they have no control. Energy can be addressed in several ways by the farm bill.
Energy offers alternative uses for existing crops.
Ethanol and biodiesel fuel are two such examples. Care has to be taken with help for ethanol so that it does not just benefit the large companies that produce the majority of the existing ethanol supplies. Energy support policies can be expanded to include the alternative crops. Biomass production via such crops as switchgrass and reed canarygrass or through agroforestry products offers opportunities to farmers. Another area the farm bill should address is support for on-farm energy research.