Southwest Energy Plans Highlight Farm Fuel Supply Risk

For producers, the issue is diesel, freight, irrigation fuel, and input delivery.

farm gasoline tanks diesel fuel energy DSCN0035.JPG

FarmHER, Inc.

LUBBOCK, TX (RFD NEWS) — Southwest fuel supply remains a concern for agriculture as federal officials consider more oil and gas leasing in Arizona and Nevada. According to OPIS, the proposals come as both states rely heavily on outside fuel supply, leaving farms, ranches, and rural businesses exposed to regional price and logistics swings.

The Bureau of Land Management (BLM) is taking public input through June 11 on 40 Arizona parcels totaling 78,708 acres for a possible December 2026 lease sale. The agency is also reviewing 14 Nevada parcels totaling 20,600 acres for a September 2026 sale.

The lease proposals are not expected to change farm fuel costs quickly. Limited regional refining capacity means any production would still need to move through broader fuel markets.

A bigger near-term development is pipeline access. Kinder Morgan and Phillips 66 say their Western Gateway project has advanced after securing enough shipper commitments, with service targeted for mid-2029.

For producers, the issue is diesel, freight, irrigation fuel, and input delivery.

Farm-Level Takeaway: Southwest producers may not see immediate relief, but regional fuel access remains important to farm and ranch costs.
Tony St. James RFD News Markets Specialist
Related Stories
Laura Priest with the Center for Rural Affairs joins us to discuss solar development trends and opportunities for agriculture and renewable energy production to coexist.
South Texas ranchers and vets warn that labor pressures will make monitoring for New World screwworm difficult across large cattle operations.
StoneX Director of Fertilizer, Josh Linville, joins us to discuss fertilizer market trends and risk management strategies to navigate an uncertain farm economy and fluctuating agricultural input costs.
Panama matters to agriculture as both a freight corridor and a potential future market for U.S. ethanol.

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:

Producers using farm entities should review ownership, labor contributions, and FSA paperwork before September 15.
Ethanol and feed coproduct exports remain strong outlets for corn demand, even after April’s pullback.
Trade estimates point to only modest changes in U.S. grain ending stocks ahead of USDA’s June 11 WASDE report.
Farmers may need flexible marketing plans as tighter supplies and uncertain demand heighten price risks for corn and soybeans.
Global fiber demand is growing, but cotton producers benefit only when cotton gains value and competes for market share.
USDA raised exports by $2.5 billion from February, while imports are forecast at $205.5 billion. The resulting $29 billion agricultural trade deficit remains a reminder that higher shipments alone do not resolve trade pressure.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.