Top Issues

The Agriculture Energy Alliance (AEA) represents a broad-based coalition of growers and agribusinesses that depend on natural gas for food production, irrigation, crop drying, crop production chemicals and fertilizer production. AEA focuses on the devastating impact that the unprecedented high level and volatility of natural gas prices has had, and is having, on agriculture.

American farmers face a crisis because of public policies that artificially create demand for natural gas while restricting access to supply sources. Increased natural gas prices have already had an adverse effect on farmers in the form of higher production costs, and will continue to do so in the future if this problem is not addressed promptly.

The agricultural community can produce an abundant, affordable and healthy food supply, but we need the federal government to institute policies that enable access to cost-competitive natural resources. The current natural gas crisis has two solutions - increase supply and reduce demand. Our Nation faces the daunting task of finding ways to balance the limited supply of, and rising demand for, natural gas.

With regard to the issue of demand, Congress should continue to encourage the electric power industry to explore and invest in alternative technologies for power generation, including 'clean coal' and next-generation nuclear plants. These technologies offer the best hope for limiting increasing natural gas demand within the electric power sector.

With regard to the issue of supply, Congress should also take action to open up areas in the Outer Continental Shelf for exploration and development. In particular, opening Sale 181 area in the Gulf Coast would be a direct, positive action to increase the nation's domestic natural gas supply to help relieve the high prices now pressuring American consumers. Allowing exploration and development in the Sale 181 area is an essential commitment that our nation must make. We believe that opening the Sale 181 area would send a strong signal to natural gas futures markets and could increase the elasticity in North American natural gas markets.