The objectives of this paper is to use the large depth of existing literature on portfolio theory and apply it to rice varietal selection for 6 counties in the Arkansas Delta. Results based on 1999-2006 data suggests that combining available varieties using portfolio theory could have increased profits from 3 to 26% (dependent on location) in the Arkansas Delta. The major implication of this research is that data and statistical tools are available to improve the choice of rice varieties to plant each year in specific locations within Arkansas. Specifically, there are large potential gains from combining varieties that are characterized by inverse yield responses to growing conditions such as drought, pest infestation, or the presence of a specific disease.