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Texas rice farmer faces tough year as costs outpace prices

A farmer in South Texas says the economically challenging conditions of rice production make retirement look attractive.

“Losing money isn’t sustainable.”

LG Raun, a past chairman of USA Rice, says crop prices aren’t high enough to cover production costs, while input costs, like fertilizer, are rising fast.

“My expenses in fertilizer, diesel, gasoline and natural gas, they can vary and right now, they’re going up. But all the others, like parts, service, chemical prices, seed costs, drying and storage are flat or up each year.”

Raun tells Brownfield he isn’t retiring yet, but something has to change. He says the farm isn’t expected to break even this year, based on current projections.

“With what the USDA is predicting for a season average price in 2025 it’s $10.50 and my cost of production is $17 per hundredweight or more. It’s going to be tough. It’s a matter of reducing your losses instead of making money.”

Raun has been farming for more than 50 years and currently raises 1,000 acres of rice.