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
State President Riley Farris reflects on a year of service as thousands of members prepare to gather in Fort Worth.
Nebraska Soybean Board Vice Chairman Greg Anderson says expanding biodiesel production is creating new opportunities for soybean growers and adding value closer to the farm.
National Farmers Union President Rob Larew and National Potato Council CEO Kam Quarles discuss the Senate Farm Bill, farm safety-net priorities, supplemental aid, year-round E15, support for specialty crops, and federal agricultural policy.
Rep. Monica De La Cruz says she’s working to make Mexico’s water obligations part of USMCA negotiations.

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:

Pasture Stress Spreads While Row Crops Hold Steady
SNAP continued to account for the largest share of food assistance spending as participation and overall program costs increased.
A new report says stronger communication can help farmers navigate a more cautious lending environment.
USDA says states with higher SNAP payment error rates could face new financial responsibility under recently approved reforms.
Heavier cattle and hog weights helped offset lower slaughter, but overall beef and pork production remained below year-ago levels.
Productivity gains helped offset a smaller breeding herd, keeping overall U.S. pork supplies relatively steady
Agriculture Shows
Agriculture is the most important industry in the world, and Ag PhD Daily brings you the information you need to best manage your business only on RFD-TV and RFD+
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.