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
Feed grain supplies may tighten in 2026/27, supporting higher corn and sorghum prices despite large crops.
USDA says federal biofuel policy and growing renewable diesel capacity are increasing demand for feedstocks.
USDA says growing soybean output and expanding biofuel demand are helping drive the increase.
Texas A&M economist John Robinson says speculative buying helped push ICE cotton futures sharply higher.
Smaller exporter crops and lower global stocks could keep wheat markets sensitive to weather, trade, and shifts in demand.
Scientists say studying how cattle digest seaweed could help shape future livestock nutrition and sustainability efforts.

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 input costs and tighter cash flow are keeping pressure on farm income, credit needs, and capital spending.
Grain movement remains active, but high ocean freight and diesel costs continue to pressure export logistics.
Corn demand received another boost last week as ethanol production climbed to a five-week high.
Chicago Fed lenders report producers are carrying more operating debt as repayment rates continue weakening across the Midwest.
Cattle markets continue supporting rural land values, but lenders say repayment rates and carryover debt are becoming a larger focus.
StoneX analyst Josh Linville says global supply risks and continued dependence on imported urea are keeping fertilizer markets on edge.
Agriculture Shows
Check out FFA Today, a fun and fast-paced show featuring fascinating stories about amazing kids and unique agriculture industries.
Farmweek is broadcast from Mississippi, one of the South’s most geographically diverse states. The Magnolia State’s most important resource is its people—and about a fourth of the state’s population hold jobs tied to agriculture.
“DocTalk” with host Dr. Dan Thomson will be teaming up with practitioners around the country to tackle issues with your livestock.
This high-yield corn contest showcases real-life Corn Warriors dealing with elements that every farmer knows well. Get an authentic look at what it takes to compete in a high-yield corn contest, and see who will take the title of Corn King.