Rice farming is projected to remain a competitive planting option among major row crops

Despite rising costs, net returns to rice are expected to increase each year after 2012-mostly due to higher prices. Although rising rice prices more than offset the steady increase in costs, net returns are projected to remain well below 2007-09. From 2014 onward, net returns per acre to rice are expected to exceed other planting options by an increasing margin, encouraging a small boost in rice acreage in competitive regions. Strong competition in the global market-especially in the long-grain milled market-and only modest expansion in the U.S. rice market limit the increase in rice acreage. This chart is from the ERS publication, Consolidation and Structural Change in the U.S. Rice Sector, RCS-11d-01, April 2011.

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