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
The White House is reportedly moving forward with beef import tariff reductions as officials look to lower food costs for consumers.
Huma Chief Sales and Marketing Officer Fred Nichols joins us to discuss rising interest in carbon-based products, soil health strategies, and fertilizer cost concerns.
Ethanol plants kept production steady, but softer gasoline demand and lower exports may limit near-term momentum.
The Nevada cattle operation continues focusing on sustainable land management for future generations.
Farmers are closely watching upcoming U.S.-China trade talks as rising fertilizer and diesel costs continue to pressure exports, margins, and rural economies.
Lawmakers advance FY27 agriculture funding bill, highlighting support for rural development, school lunches, disease response, and water issues.

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:

For dairy producers, that could help support fluid milk use in cafeterias, breakfast programs, and other child nutrition settings.
EU simplification may reduce some paperwork, but U.S. exporters still face costly traceability requirements.
Lower wheat production, smaller stocks, and higher projected prices explain the rally and put more attention on Plains crop conditions.
U.S. grain export inspections stayed solid for the week ending May 7, with corn still leading the export pace and soybeans posting a strong weekly rebound.
U.S. beef imports are running at a record pace while exports are falling, reflecting tight domestic cattle supplies and high U.S. beef prices.
ASFMRA’s Chad Hertz joins us to discuss farmland trends, economic pressures facing producers, and how outside influences are shaping today’s land market.
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.