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Energy Efficiency Trends in Canada, 1990 to 2003

Chapter 7. Agriculture Sector

Definition: The agriculture sector in Canada includes all types of farms, including livestock, field crops, grain and oilseed farms. The agriculture sector also includes activities related to hunting and trapping. The data in this chapter are related to energy used for farm production and include energy use by establishments engaged in agricultural activities and in providing services to agriculture.

Figure 7.1 Energy Use, With and Without Change in Energy Intensity, 1990 and 2003 (petajoules)

As Figure 7.2 indicates, the following influenced the change in energy use and related GHGs:

• a 4 percent increase in activity (agriculture GDP in constant 1997 dollars) resulted in a 7.7 PJ increase in energy use and a corresponding 0.5 Mt increase in GHG emissions; and
  
  
• a 2 percent increase in the energy intensity of the agriculture sector resulted in a 5.0 PJ increase in energy use and a 0.4 Mt increase in GHG emissions.

Figure 7.2 Impact of Activity and Energy Intensity on Energy Use, 1990-2003 (petajoules)

As illustrated in Figure 7.3, there are no clear trends in either activity or energy intensity. In particular, changes in energy intensity appear to be quite volatile, fluctuating sharply from year to year. In 2003, after several years of steady decline, activity rebounded, pulling down energy intensity.

Figure 7.3 Changes in Energy Use Due to Activity and Energy Intensity, 1990-2003 (petajoules)

As Figure 7.4 shows, GHG emissions (including electricity-related GHG emissions) from the agriculture sector were 9 percent,or 1.2 Mt, higher in 2003 than in 1990. This rise was driven by increases in both energy consumption and in the GHG intensity of the energy used. A higher GHG intensity was due to an increase in the GHG intensity of electricity production and a relative increase in the consumption of more GHG-intensive fuels. For example, diesel increased its share of energy use from 36 percent in 1990 to 41 percent in 2003.

Figure 7.4 Influence of Energy Use and GHG Intensity on the Change in GHG Emissions, 1990-2003 (megatonnes of CO₂ equivalent)

The Energy Use Impacts of Organic Agriculture

Organic agriculture is a farming method that minimizes the use of chemicals in the production process. It aims to produce crops with a high nutritional value and to improve the long-term fertility and sustainability of farmland. Organic farms must meet voluntary standards established by the Canadian General Standards Board, which include, among other principles, halting the use of synthetic pesticides, fertilizers that contain prohibited synthetic substances, and Genetically Modified Organisms.¹

In Statistics Canada's Census of Agriculture, organic farming was surveyed for the first time. It was found that 2230 farms produced at least one type of certified organic agriculture product. Field crops (e.g. grains, oilseeds, etc.) were the most popular category of organic farming, followed by fruits, vegetables or greenhouse products, animal products and other (e.g. maple syrup, herbs, etc.) [see Figure 7.5]). Retail sales in the organic sector have grown 20 percent per year for the past 10 years, and are expected to reach $3.1 billion by 2005.² Though the number of organic producers increased by 176 percent between 1992 and 2001,³ organic farms made up less than 1 percent of total farms in 2001.4

Figure 7.5 Number of Certified Organic Farms by Product, 2001

Source: Statistics Canada, 2001 Census of Agriculture, Ottawa, May 2002 (Cat. No. 95FO301XIE).

On organic farms, when the use of synthetic pesticides and fertilizers is halted, the land may be tilled more intensively, with additional crop rotations to control weeds. This has implications for energy use, as tractors and other farm machinery are used more often to till the fields. The elimination of machinery passes to apply fertilizers and pesticides, however, will partially offset this rise. In addition to increased energy costs, organic farms producing fruits and vegetables have reported lower crop yields. However, some organic products command higher prices, which partially or fully compensate the producer for this reduced output. As a result,about half of the organically grown fruit and vegetable crops in Canada generate a higher gross return per hectare than conventional methods.5

To evaluate differences in energy use on organic and conventional farms, consider the production of spring barley on Danish organic farms (see Figure 7.6). The organic system uses mechanical weed control instead of pesticides, and spreads slurry6 instead of using synthetic fertilizers. Compared to conventional methods, it uses more energy per hectare for motive7 and less for drying and irrigation purposes (non-motive agriculture energy use). Though total energy use was higher, yields were 28 percent lower, indicating a higher energy intensity, or energy per unit of GDP (assuming similar prices), on this organic farm.

Figure 7.6 Energy Use for Spring Barley Grown on Irrigated Sandy Soil in Denmark, 2002 (megajoules per hectare)

Source: Dalgaard et al., "Energy Balance Comparison of Organic and Conventional Farming," Organic Agriculture: Sustainability, Markets and Policies, OECD, 2003.

Organic farming also has impacts on energy use in non-agriculture sectors such as industrial and transportation (see Figure 7.6). Decreased demand for pesticides and fertilizers will lower production levels and energy use related to the manufacture (includes feedstocks and energy to operate the machinery) and transport of these conventional agriculture inputs. Note that these reductions in non-agriculture energy use completely offset increases in agriculture energy use due to additional tillage.

Organic farming accounts for a small segment of the market in Canada, and the impact on total agriculture energy use is limited. However, based on the Danish example, continued growth in the size and number of organic farms could increase agriculture energy use and intensity. Reductions in energy used to produce and transport fertilizers and pesticides may offset increased energy use in agriculture production, which could result in a net decline in secondary energy use. Making generalizations about organic agriculture is difficult, because there are many different farms producing a wide variety of crops using a wide variety of techniques. This analysis gives an idea of the differences between organic and conventional farming with respect to energy use, but more information needs to be collected before definite conclusions are drawn.

¹ Canadian General Standards Board, Organic Production Systems Part 1: General Principles, Ottawa, June 2004.

² Agriculture and Agri-Food Canada, "Canada's Agriculture, Food and Beverage Industry, Canada's Organic Industry," Factsheet Series, ats-sea.agr.gc.ca/supply/3313_e.htm, downloaded November 2004.

³ Organic Agriculture Centre of Canada, "Organic Statistics 2003," www.organicagcentre.ca/DOCs/CANADA%20Organic%20Stats%202003.pdf, downloaded November 2004.

4 Agriculture and Agri-Food Canada, downloaded November 2004.

5 Statistics Canada, "Organic Fruit and Vegetable Production: Is it For You?," Vista on the Agri-Food Industry and the Farm Community, Ottawa, September 2002 (Cat. No. 21-004-XIE).

6 A thick, liquid mixture of water and manure.

7 Dalgaard et al., "Energy Balance Comparison of Organic and Conventional Farming," Organic Agriculture: Sustainability, Markets and Policies, OECD, 2003.