The average cost of producing a hundred pounds (cwt) of rice was
$6.00 for U.S. producers surveyed in 2000, ranging from about $2
per cwt to more than $10. Producers in the lowest quartile of
production costs averaged $3.99 per cwt compared with $8.94 for
producers in the highest quartile. Regional differences in
production practices, farm characteristics, and growing conditions
were major influences on production costs among rice producers.
More than half of the low-cost farms were located in the Arkansas
Non-Delta, the largest rice region. Most high-cost farms were in
California and the Gulf Coast regions. Three-quarters of rice
production was concentrated on large and very large farms,
categories that included nearly two-thirds of all rice farms, but
the link between size of enterprise and production costs for rice
is weaker than for other commodities. At the marketing-year average
price of $5.61 per hundredweight, 78 percent of rice farms were
able to cover operating costs and 43 percent covered both their
operating and ownership costs of rice production in 2000. After
accounting for Government payments, nearly all rice farms (97
percent) were able to cover operating costs in 2000, and about 84
percent were able to cover both operating and ownership costs.
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