NASHVILLE, TN – Rising diesel prices and lingering drought could sharply increase irrigation expenses for corn, soybean, cotton, and rice producers this summer. LSU AgCenter economist Michael Deliberto says energy costs will be a major factor as pumping demand increases.
Using Louisiana production assumptions, a diesel-powered surface system applying 24 acre-inches to rice would cost $88.38 per acre at $3 diesel. At $5 diesel, the cost rises to $147.30. Corn irrigation costs would increase from $38.67 to $64.44 per acre.
Deep-well systems cost more because additional energy is needed to lift water. Electric systems are generally more efficient, with commercial rates near 15 to 20 cents per kilowatt-hour. Diesel would need to fall below $2.50 per gallon to match that efficiency.
Drought could add further pressure by requiring more applications. Rice may need 20 to 26 acre-inches during the season, while corn, soybeans, and cotton typically receive about 10.5 acre-inches.
Producers can reduce exposure through weather-based scheduling, surge irrigation, soil moisture sensors, automated pump controls, and bulk fuel purchases. These steps can lower water use and protect margins during volatile energy markets.
Farm-Level Takeaway: Higher fuel prices and drought could make irrigation efficiency increasingly important for protecting crop margins.