AbstractRye (Secale cereale L.) grain production in Kentucky is insufficient to meet the needs of distillers and bakers, in part because there is a knowledge gap about rye management that discourages farmers from choosing this crop. We conducted an economic study to develop recommendations for profitable rye grain production. The aim of this study was to determine the influence of two different nitrogen (N) rates (35 lb N acre−1 and 70 lb N acre−1) on yield and profitability of winter rye grain production. Experiments were conducted in 2020–2021 season at three Kentucky locations: Lexington, Princeton, and Adairville. Twenty‐four rye entries were planted in a split plot design experiment and the two N rates (35 lb N acre−1 and 70 lb N acre−1) were assigned to main plots. There was no significant difference in mean yield between 35 and 70 lb N acre−1. This indicates that less investment in N fertilizer will not adversely affect grain yield level, will enhance profitability of production, and will benefit distillers due to the higher alcohol yield associated with higher starch and lower protein levels.