Rising Energy Costs Are Squeezing New York Farmers

When people talk about rising energy costs in New York, they usually think about their utility bill or the price at the gas pump.

But there’s another group feeling this pressure even more acutely:

Our farmers.

And if we don’t start paying attention, the impact won’t stop at the farm, it will show up in higher food prices, fewer local products, and the loss of family farms that have been part of our communities for generations.

Farming Runs on Energy

Farming is one of the most energy-dependent industries in our economy.

Energy isn’t just one line item, it touches everything:

• Diesel for tractors and equipment

• Electricity for milking, refrigeration, and irrigation

• Natural gas and propane for heating barns and greenhouses

• Fuel for transporting crops and livestock

• Fertilizer production, which is directly tied to natural gas

When energy costs rise, every part of the farm becomes more expensive to operate.

The Problem: Costs Are Rising Faster Than Farmers Can Keep Up

Unlike many businesses, farmers can’t simply raise prices when their costs go up.

They’re competing in national and global markets. Prices for milk, corn, or beef aren’t set in Saratoga, Warren or Washington County they’re set by the market.

That means when costs increase, farmers absorb it.

And right now, those costs are climbing:

• Fuel prices remain volatile

• Electricity and heating costs are rising

• Fertilizer costs fluctuate with natural gas prices

All of this is putting pressure on already thin margins.

Where Policy Comes In

Let’s be clear: energy prices are rising for a lot of reasons: global markets, supply constraints, and growing demand.

But state policy is also playing a role.

New York’s Climate Leadership and Community Protection Act (CLCPA) sets aggressive timelines to transition away from traditional energy sources:

• 70% renewable electricity by 2030

• 100% zero-emission electricity by 2040

Those goals may sound good on paper.

But the way we’re getting there matters.

Right now, we are:

• Increasing electricity demand

• Retiring existing energy sources

• Investing heavily in new infrastructure

• And passing those costs on to ratepayers

That combination is driving up costs and farmers are among the first to feel it.

The Risk to Agriculture

If this continues, farms across Upstate New York will face difficult decisions:

• Delay equipment upgrades

• Cut back production

• Sell land

• Or shut down entirely

And when farms disappear, the impact doesn’t stop there.

We lose:

• Local food production

• Jobs

• Open land

• A key part of our regional identity

We also become more dependent on food from outside New York and even outside the country.

This Isn’t About Politics, It’s About Practicality

Farmers understand the importance of environmental stewardship better than anyone. They work the land every day. They depend on it.

But they also understand something policymakers in Albany sometimes overlook:

You can’t run a farm on ideology. You have to run it on reality.

A Better Path Forward

We don’t need to abandon clean energy goals.

But we do need a plan that works for farmers.

That means:

1. Slowing Down Unrealistic Timelines

Farmers need time to adapt. Rapid mandates create sudden cost increases they can’t absorb.

2. Protecting Affordable Energy in the Short Term

Diesel, natural gas, and propane are essential today. We can’t eliminate them before alternatives are truly viable.

3. Investing Before Mandating

Don’t require changes until:

• Infrastructure is in place

• Technology is affordable

• Systems are reliable

4. Supporting On-Farm Energy Solutions

Encourage, not force solutions like:

• Solar

• Anaerobic digesters

• Efficiency upgrades

These should help farmers save money, not add new financial burdens.

5. Taking an “All-of-the-Above” Approach

We need a balanced energy mix:

• Renewables

• Nuclear

• Cleaner natural gas

• Storage

That’s how you maintain reliability and affordability.

The Bottom Line

Energy costs are rising and farmers are among those being hit the hardest.

If we get this wrong, we don’t just hurt agriculture.

We raise food prices.
We lose local farms.
We weaken our rural economy.

And we risk losing a way of life that defines Upstate New York.

Final Thought

Farmers are not asking for special treatment.

They’re asking for something simple:

A fair shot to survive.

If our policies make it harder to farm, harder to produce food, and harder to stay in business, then those policies need to be rethought.

Because when farms go under, we all pay the price.