Diesel Prices and Drought Threaten Soaring Irrigation Costs for Farmers

Rising diesel prices and drought are expected to sharply increase irrigation costs for corn, soybean, cotton, and rice producers this summer. LSU AgCenter economist Michael Deliberto notes that energy costs will be a major factor as pumping demand increases.

According to Deliberto's calculations, the cost of irrigating rice would rise from $88.38 per acre at $3 diesel to $147.30 at $5 diesel. Corn irrigation costs would increase from $38.67 to $64.44 per acre.

Deep-well systems are more expensive because additional energy is needed to lift water. In contrast, electric systems are generally more efficient, with commercial rates near 15 to 20 cents per kilowatt-hour. Diesel prices 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. To mitigate these costs, producers can use weather-based scheduling, surge irrigation, soil moisture sensors, automated pump controls, and bulk fuel purchases.