Diesel Costs Could Double Rice Fuel Expenses

An LSU agricultural economist projects higher per-acre fuel costs for Louisiana crops in the 2027 planting season if diesel stays near $5.34 per gallon.

Updated on Nov. 3, 2026 in Agriculture

Diesel Costs Could Double Rice Fuel Expenses

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Fuel expenses for rice production could nearly double per acre next planting season, according to an LSU agricultural economist's analysis dated November 3, 2026. The projection assumes diesel prices remain at $5.34 per gallon, with rice and sugarcane operations expected to see some of the largest increases.

Why it matters

Louisiana's fuel-intensive crops face rising production costs if diesel prices stay high, affecting farm budgets across the state. The projections come as USDA prepares one-time diesel harvest relief payments for farmers.

Projected per-acre fuel costs under a $5.34 diesel assumption are $240 for rice, $122 for cotton, $92 for corn and $62 for soybeans, versus current expenses of $124, $63, $47 and $32. The USDA's $8 billion in one-time diesel harvest relief payments has no announced distribution date.

The players

LSU AgCenter

The agricultural research and extension arm of Louisiana State University, which produces economic analyses for Louisiana farmers and agribusinesses.

U.S. Department of Agriculture

The federal agency that oversees American agriculture and announced the $8 billion diesel harvest relief program.

The details

The LSU analysis multiplies per-acre fuel use by an assumed diesel price of $5.34 to estimate next year's expenditures. Last month USDA announced plans to provide $8 billion in one-time diesel harvest relief payments to farmers.

Last month (October 2026): USDA announced plans for $8 billion in one-time diesel harvest relief payments.
November 3, 2026: LSU agricultural economist's fuel cost analysis was published from Baton Rouge.
2027 planting season: Farmers are expected to face higher fuel expenses.

Market Landscape

USDA's $8 billion one-time diesel harvest relief payments were announced last month to address high fuel costs during this harvest. The LSU projections suggest those costs may persist into the 2027 planting season, when the relief will no longer be in effect.

Louisiana farmers planning 2027 rice, corn, cotton or sugarcane crops should account for per-acre fuel costs that could roughly double if diesel holds near $5.34. The one-time USDA relief payments do not cover future planting seasons.

The takeaway

Farm operators should build diesel price scenarios into their planning budgets, since fuel can be a major share of per-acre production costs in Louisiana's rice and sugarcane operations. Tracking USDA's relief payment timing will help clarify cash flow for the coming season.