U.S. Rice Production Projected Near a 40-Year Low

USDA’s July World Agricultural Supply and Demand Estimates (WASDE) report, released July 10, projects U.S. rice production at one of its lowest levels in nearly four decades. Total rice production is estimated at 153.3 million hundredweight, which would be the smallest crop since 1987. Long-grain rice, the predominant type grown in the Mid-South, is projected at 104.1 million hundredweight, its lowest level since 1993. The total rice production estimate was lowered by nearly 13 percent from the June 2026 WASDE following the reduction in planted acreage reported in USDA’s June Acreage report.

Total U.S. rice planted acreage is estimated at 2.02 million acres in 2026, its lowest level since 1972 (Table 1). Acreage is projected to decline in every major rice-producing state, with several states reaching historically low levels. Arkansas is estimated to plant 851,000 acres, its lowest acreage since 1977. Mississippi acreage is projected at only 45,000 acres, the lowest level since 1961. Texas rice acreage is estimated at 113,000 acres, its lowest level since USDA began reporting state rice acreage in 1929.

Reduced acreage and production have substantially tightened the U.S. rice supply outlook. Long-grain rice ending stocks are projected at 17.7 million hundredweight for the 2026 marketing year, down 52 percent from last year. In response to tighter supplies, USDA raised its projected season-average farm price for long-grain rice to $13.50 per hundredweight, compared with $10.40 last year. Although reduced acreage has improved the price outlook, profitability remains a concern for many producers because prices are still unlikely to offset high production costs. 

In the Mississippi Delta, the nation’s largest rice-producing region, producers are projected to experience a sixth consecutive year of negative returns (Figure 1). Recent USDA Economic Research Service (ERS) estimates place the total cost of producing an acre of rice in the region at $1,411. Production costs are up more than 12 percent from the previous year, driven largely by higher fertilizer and fuel expenses. Based on the assumed 2026 price ($13.50/cwt) and yield (80 cwt), producers would face an estimated loss of $331 per acre. Although these estimates will not reflect the circumstances of every operation, they indicate that many U.S. rice producers will continue to face a difficult profitability environment in 2026.

Table 1. Rice Planted Acreage by State, 2025–2026, and Historical Low Comparison
20252026Lowest Acres Since
  MarchJune 
Arkansas         1,284,000 1,001,000851,0001977
California             524,000 508,000455,0002022
Louisiana             482,000 430,000400,0002017
Mississippi             164,000 80,00045,0001961
Missouri             213,000 175,000153,0002011
Texas             145,000 125,000113,0001929
Total         2,812,000 2,319,0002,017,0001972

Source: USDA WASDE July 2026, NASS Quickstats

Figure 1. Rice Production Costs and Returns for the Mississippi Delta Region

Source: USDA Economic Research Service Cost of Production Estimates. The 2026 revenue estimate is based on USDA’s projected season-average farm price of $13.50 per hundredweight and an assumed yield of 80 hundredweight per acre.

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