Title page

Contents

Abstract 3

Acknowledgments 3

Summary 5

Introduction 7

Data and Methodology 11

Trends in Energy Payments 13

Regional Distribution of Energy Payments: Oil, Natural Gas, and Wind 17

Energy Payments by Farm and Operator Characteristics 23

Determinants of Energy Payments: Findings From Regression Analyses 28

Conclusion 33

References 35

Appendix 40

Regression Model Technical Details 40

Supplementary Descriptive Tables 41

Table 1. Energy payments to U.S. agricultural producers, 2011-20 14

Table 2. U.S. energy payments compared to other income sources, 2011-20 16

Table 3. U.S. energy payments compared to other income sources: Energy income households only 17

Table 4. Percent of U.S. agricultural producers receiving energy payments by county production type, 2011-20 20

Table 5. Average U.S. energy payments by county production type in U.S. dollars, 2011-20 21

Table 6. Regression results: Probability of energy payments 29

Table 7. Regression results: Size of energy payments 32

Figure 1. Annual average U.S. energy payments and oil prices, 2011-20 15

Figure 2. U.S. energy payments (U.S. dollars) by farm production expenditure regions, 2011-20 18

Figure 3. U.S. energy county definitions, 2020 19

Figure 4. U.S. energy payment distributions, 2011-20 22

Figure 5. U.S. energy payments by farm acres owned, 2011-20 23

Figure 6. U.S. energy payments by farm type, 2011-20 25

Figure 7. U.S energy payments by farm production specialty, 2011-20 26

Figure 8. U.S. energy payments by farm operator educational status, 2011-20 27

Figure 9. U.S. energy payments by farm operator race/ethnicity, 2011-20 28

Table A.1. U.S. average energy payments by county production type: Oil fields measure, 2011-20 41

Table A.2. U.S. average energy payments by county production type: Strict production measure, 2011-20 42

Table A.3. Probability of energy payments: Texas, 2011-20 42

Table A.4. Size of energy payments regression: Excluding outliers, 2011-20 43

Table A.5. Probit marginal effects on the probability of receiving energy payments, 2011-20 44

Table A.6. Marginal effects from the Heckman Selection Model, 2011-20 45

Figure A.1. U.S. energy payments by farm size, 2011-20 46

Figure A.2. U.S. energy payments by primary farm operator retirement status, 2011-20 46