Rice Prices Fall Despite Tighter Domestic Stocks Outlook

The global rice surplus outweighs tighter U.S. supplies, pressuring prices.

NASHVILLE, TENN. (RFD NEWS) — U.S. rice producers are heading into 2026 facing lower prices even as supplies tighten, according to University of Arkansas economist Ryan Loy.

U.S. rice acreage totaled about 2.8 million acres in 2025, with roughly 2.7 million harvested after spring flooding reduced plantings across the Midsouth. Long-grain ending stocks are projected near 34.6 million bushels — similar to last year — but the average farm price is forecast to drop to about $10.50 per hundredweight from roughly $14.00 the previous marketing year.

Farm-Level Takeaway: Global surplus outweighs tighter U.S. supplies, pressuring prices.
Tony St. James, RFD NEWS Markets Specialist

Global conditions are driving the decline. Worldwide production is expected to be near record levels, while demand lags, creating a third consecutive year of surplus. Large exportable supplies from Asia — especially India — continue pressuring prices across major exporters.

Competition remains strongest in Western Hemisphere markets where U.S. rice competes with South American crops. A smaller Mercosur crop could help support market share, though high beginning stocks in Brazil limit upside potential. U.S. long-grain exports during the first half of the marketing year already fell 31 percent from a year earlier.

Related Stories
In part six of his blog series,"Top 10 Developments in Ag Law and Tax in 2023,” farm legal expert Roger McEowen tackles issue #2, foreign ownership of ag land.
As we start the new year, let’s take a look at some of the legislative items from 2023 affecting agriculture that will continue to play out in the political area for months to come.
Both imports and exports are moving through the Panama Canal at a slower pace as the ag industry continues to deal with drought-related restrictions.
Gov. Sarah Huckabee Sanders spoke with RFD-TV’s own Susan Alexander this Monday morning on the Market Day Report to explain Arkansas’s recently passed giving lawmakers greater authority to sanction foreign ag-land ownership within the state.
The USDA’s latest crop forecast for corn and soybean production will impact U.S. producers as well as make an impact on global trade.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Higher cow numbers and slightly stronger output per cow pushed milk production above last year.
Food inflation is still building in 2026, with beef leading pressure while eggs and dairy offer some relief.
Diesel has eased for now, but the larger 2026 energy outlook still points to elevated fuel costs.
Rotational grazing can improve pasture use and soil health while helping control feed and drought-related risk.
March cold storage data showed generally tighter year-over-year stock levels across several key meat and dairy categories.
Spring Weather Splits Conditions Across American Farm Country