Energy in farming and Urea

Energy in farming needs urea; their prices have moved together.

Energy in farming (energy) and Urea (chemical): 2 relationships.

How they are linked

1. Material need

Physical flow · Direct · Urea → Energy in farming

Building or running Energy in farming needs urea.

2. Price link: fertiliser energy

Cost and price · Strong · Both ways

Nitrogen fertiliser such as urea is made from ammonia, which uses natural gas, so fertiliser is a hidden energy cost for farms. Monthly moves correlate at 0.30 and yearly at 0.66, a common energy driver.

• 0.30 monthly change correlation
• 0.66 12-month change correlation
• 0.76 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.