Louisiana Economist: Rice and Sugarcane Farmers Face Cost Doubles

Baton Rouge, Louisiana. Agricultural economist Mike Deliberto of Louisiana State University stated that rice and sugarcane producers face the steepest potential increases in fuel expenses for the upcoming planting season. Deliberto noted that these fuel-intensive operations could see production costs rise sharply if diesel prices remain elevated.

Deliberto calculated specific cost projections based on a hypothetical scenario where diesel prices stay at $5.34 per gallon for the coming year. Under that condition, the fuel expenditure for a corn farm would increase from $47 to $92 per acre. Cotton growers would see costs rise from $63 to $122 per acre, while soybean farmers would face an increase from $32 to $62 per acre.

The impact on rice and sugarcane operations is more pronounced. Deliberto indicated that rice fuel costs would climb from $124 to $240 per acre. For sugarcane, the expense would jump from approximately $98 per total farm acre to $191.

The U.S. Department of Agriculture announced plans last month to provide $8 billion in one-time diesel harvest relief payments to assist producers. However, the timing of these payments remains unknown to farmers who are currently planning their budgets for the next cycle.

Deliberto emphasized that the potential doubling of fuel costs represents a major variable for growers of these specific crops. The analysis assumes the current diesel price point remains static for the entirety of the next production year.