Quantifying the Agronomic and Economic Performance of Hybrid and Conventional Rice Varieties

The objective of this research is to estimate and compare the agronomic and economic performance of hybrid and conventional rice (Oryza sativa L.) varieties in the Mid-South of the United States. The introduction of hybrid rice for commercial production has given producers an alternative to traditionally cultivated, conventional (inbred) lines. Adoption rates of hybrid rice have grown to over 40% in some regions of the Mid-South; however, its milling quality is a concern. Producer revenues are based on both rough (paddy) rice yield and postharvest processing, or milling. Hence, producers receive prices at the mill that are directly affected by the milling quality of the delivered rice. In this study, we used 3500 observations from 2003 to 2013 with detailed weather, yield, and milling data in 23 locations across Arkansas and Mississippi to estimate differences in the paddy (quantity) and milled rice yield (quality) between hybrid and conventional cultivars. Moreover, we used a multivariate regression framework to estimate yields and economic returns for Clearfield (imidazolinone tolerant; CL) and non-CL varieties. We found that hybrid varieties had a paddy yield premium over conventional varieties of 1.66 Mg ha(-1) and 1.82 Mg ha(-1) for CL varieties. The results show that hybrids had a lower milling quality than the conventional varieties, yet the milling quality exceeded industry standards in 97.5% of the observations. On average, hybrid varieties outperform conventional rice varieties in terms of absolute profit per hectare and relative profit margin, defined as profit per cost of production, for both CL and non-CL varieties.