Hybrid rice represents a new and increasing popular variety option for rice producers. This study examines the acreage diversification among long grain rice varieties in the southern rice region and presents estimates of thedifferences in expected costs and returns among the production of conventional, Clearfield®, and hybrid rice varieties. Breakeven yield increases required to cover additional hybrid rice production costs are estimated over a range of rough rice market prices for both owner and tenant rental situations. Rough rice market price adjustments resulting from grade differences from milling yields are also discussed.