As energy prices soar in Ohio and nationwide, farmers are exploring ways to cut costs through energy efficiency and renewable energy practices. A deeper understanding of on-farm energy consumption, the energy pyramid, and the impact of peak demand on billing could help farmers implement best practices to reduce energy costs.
CFAES researchers are seeking to understand electrical demand on livestock farms and identify strategies and equipment farmers can use to more efficiently manage energy consumption.
“The data has shown us that if you have a farm and you are on a demand rate, simple changes in behavior can save you money,” said Eric Romich, a CFAES professor and an OSU Extension field specialist in energy development. “Many farms aren’t aware of the details in their electric rate structure.”
The shift from diesel fuel to electricity has caused farms to be heavy electricity users. Demand rates, typically seen in commercial structures, are now common in farming operations. According to the 2020 On-Farm Critical Infrastructure Survey, 72% of farmers are concerned or very concerned about electricity prices, and 57% have a commercial electric rate with demand charges.
In 2023, Ohio farms spent approximately $4.7 million on electricity to support the state’s dairy and swine production. Demand charges, which track the highest rate of electricity consumption during the billing period, can account for roughly 50% of a farm’s monthly electricity bill.
As agricultural operations have become more automated, the electrical demands of many farms have increased. In 2014, the agricultural sector consumed 1,714 trillion BTU of energy, with electricity representing 17% of the total energy consumed. Romich’s work focuses on demand reduction.
To reduce demand charges, he suggests that farmers understand their rate structures and identify large motor loads, as well as recognize when they operate, how long they operate, and why.
“Everyone is busy. You get your bill, you pay your bill, and you move on,” Romich said. “But understanding how to shift nonessential loads to times when other operations aren’t running can make a difference.”
Romich’s research aims to reduce energy cost in swine and dairy barns through the installation of high-efficiency ventilation fan motors and employ optimal controller strategies based on modulation of fans in response to temperature and humidity signals.
“As Ohio — the No. 10 state in demand charges used — faces rising energy costs, these initiatives could provide a roadmap for farmers seeking to increase energy efficiency and profitability,” he said.