PART 2: FOOD, FARMING, AND THE ECONOMICS OF ENERGY

Food systems provide one of the clearest examples of how deeply fossil fuels are embedded in modern life. Farming is often viewed as a biological process, but in reality, it is a system of energy conversion. Modern agriculture depends heavily on fossil fuels at multiple stages, from fertiliser production to machinery, irrigation, processing, and transport.

Nitrogen-based fertilisers, which are critical for modern crop yields, are produced using natural gas. Agricultural machinery relies on diesel. Food must then be processed, packaged, transported, and stored, all of which require energy. When fossil fuel inputs are reduced or become more expensive, the entire food system adjusts. As Craig Astill describes it, “Cheap energy creates cheap food. When energy costs rise, the entire food system adjusts.”

FOOD IS ENERGY IN A DIFFERENT FORM

This adjustment is reflected directly in pricing. Higher energy costs increase the cost of production, which flows through to consumers. As food becomes more expensive, disposable income declines, and spending across other areas of the economy contracts. This creates a feedback loop where rising costs in one system begin to influence others.

There are also longer-term implications for health and society. As food prices rise, dietary patterns often shift toward lower-cost, lower-quality options. Nutritional diversity can decline, and over time, this impacts metabolic health and long-term wellbeing. At the same time, supply chains become more sensitive to disruption, as higher costs and reduced efficiency reduce system flexibility.

The connection between energy and food is often underestimated. However, when viewed from a systems perspective, it becomes clear that energy is not just an input into agriculture. It defines the scale, cost, and structure of the entire food system.

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