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In This Issue:
- Market Update: Hurricane Francine Dampens Rice Harvest
- Washington, D.C. Update
- USRPA's September Schedule Packed with Buyer Visits
- USRPA Joins TDA Trade Mission to the Dominican Republic
- RMTC 2025: Secure Your Booth Space ASAP!
- Photo from Rice Country
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Market Update: Hurricane Francine Dampens Rice Harvest | |
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The U.S. rice market has remained fairly insulated from the shocks taking place around the globe. As a result, significant market updates have been few and far between in recent weeks regarding rice prices. That has largely been because of steady domestic business, along with Haiti, which has been procuring milled rice at a steady rate. However, just this week the U.S. State Department advised all Americans to leave Haiti immediately by whatever means necessary because of increased gang activity. We hope this doesn’t devolve into the situation we saw directly after the assassination of President Jovenel Moise in July 2021, but recent reports predict that gangs control nearly 80% of Port-au-Prince. The slowing of shipments to Haiti just as new crops become available is not ideal timing.
Harvest is near wrap up in Louisiana and Texas, with now reporting 89% complete. Arkansas jumped over the halfway mark this week, jumping from 39 to 56% since last week’s crop progress report. Mississippi is showing 67% harvested, while Missouri is at 28%. California’s earliest harvesters got in the fields this week, now reporting 2% harvested. Crop condition continues to hold strong, with 80% at good or excellent.
India remains a confusing mess, which is translating into increased prices and panic for importers and exporters alike. As of this week, the white rice ban remains intact, a 20% tariff on parboiled rice has been imposed, and a minimum export price for Basmati of $1,200 pmt has been imposed, all while the broken rice export ban that has been in place since September 2022 may be relaxing a bit as the trade is talking about sales of brokens to some West African countries. All in all, confusion reigns in the Near and Far East, while the market is “fair to middling” here in North America. It is now anticipated that these export restrictions from India will remain intact into the first quarter of 2025, or at least until the election cycle is complete.
A recent GAIN report on Costa Rican rice shows that U.S. rough rice exports have plummeted following the Costa Rican government’s tariff rate reduction on imported rice from August 2022. Exports of U.S. rice to Costa Rica have fallen a staggering 98% YTD through June 2023. The attrition the U.S. industry has lost to South America has been widely reported here, where Brazil, Uruguay, and Argentina have been the beneficiaries. This loss was only exacerbated by the tariff rate reduction policy, with the true numbers just now being realized. The reduction of rice acreage over the last decade in Costa Rica would indicate a prime market for U.S. rice. Unfortunately, recent events make the opposite true. The reduction of acres in Costa Rica is highlighted by the fact that in 2013 they produced 163,000 acres of rice; projections for this year are as low as 37,000 acres. This reduction increases their reliance on imports, of which the U.S. needs to claw back its market share.
Great news on the Export Sales report, with net sales of 82,300 MT, up a whopping 162%, largely to Mexico (57,300 MT) and Haiti (21,000 MT). Exports of 64,600 MT, up huge from last week also were primarily to Mexico (48,100 MT), Haiti (7,100 MT), and Venezuela (5,900 MT).
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Rice Producers Continue Push for Improved Farm Bill
Following up on communications among rice producers and their elected representatives at home during Congress’ annual August District Work Period, representatives of USRPA and a long list of other farm organizations renewed advocacy in Congress this week to push for a new and improved farm bill.
More than 250 Organizations Call for a New Farm Bill
On Monday September 9, both the House and Senate returned to Washington, DC for three weeks before the end of the fiscal year. Waiting in Congress’ inbox was a letter signed by USRPA and more than 250 other agricultural organizations “in support of advancing a meaningful farm bill in 2024 that addresses worsening conditions in farm country. … It is imperative Congress act before year’s end to strengthen farm policy for America’s farmers.” The letter goes on to explain “Farmers are struggling, and the decline in the farm economy is real. Estimated 2024 net farm income for U.S. agriculture is projected to be down $55.61 billion, a more than 27% drop from the 2022 level, according to the U.S. Department of Agriculture (USDA). Despite these factors, USDA projects that federal support for production agriculture in 2024 will be at its lowest since 1982. …Congress must act before year’s end to strengthen farm policy for America’s farmers, and we remain committed to assisting in this effort.” The entire letter and its signatory organizations can be found here.
Rice Producers and Others Take the Campaign to the Hill
Coinciding with Congress’ return to DC and the delivery of the ag industry letter calling for a new farm bill, representatives of USRPA and many other farm organizations were on the Hill urging Congress to pass a farm bill this year. Currently, the 2018 Farm Bill is operating under a one-year extension which expires at the end of September. The outreach is intended to continue to encourage Congress to act on a farm bill reauthorization and to highlight current farm conditions. A recent USDA report forecasts a 6.8% decline in net farm income in 2024. The income decline coupled with high input costs will exacerbate credit needs. Bankers, commodity groups, and general farm organizations were participating in the outreach outlining their concerns including the need for an improved farm bill, challenging credit conditions, and the need for disaster assistance.
Information gathered at the meetings indicate that the outlook for completing a farm bill before Congress recesses at the end of the month is highly unlikely. The Congressional schedule is short and Members and Senators are anxious to return home and get on the campaign trail for their final push before the November elections. Although pressure has been building on Congress to complete the farm bill, it is generally acknowledged that although September 30 is when the current extension expires, many in Congress view the “real” deadline as the end of 2024. As of now, it is expected that the farm bill will expire (for the second year in a row) at the end of this month.
September Congressional Goal is to Avoid a Government Shutdown
Despite the languishing of the Farm Bill since it expired in September 2023, Congress’ main priority during its September “work period” will be passing a continuing resolution to temporarily fund the government and avoid a government shutdown at the end of the month. Negotiations will continue as the shutdown deadline approaches, and there is still optimism that a shutdown can be avoided. Once that is accomplished, Senators and House Members will vacate Washington to return to their districts ahead of the election this November.
Farm Bill Consideration in the “Lame Duck” Congressional Session?
Congress will need to consider whether to extend the current farm bill, write an improved farm bill reauthorization, and/or to provide other farm assistance when they return after the November elections, during the lame duck session. Whether an extension or full reauthorization gains serious consideration will largely be determined by the dynamics resulting from the November election. We now have a Republican House of Representatives with a Democratic Senate and Democratic executive branch. A change in control for any of these institutions will dictate a dynamic which may ease the path for a reauthorization or make it more difficult.
Whatever the situation, USRPA and its representatives will continue pushing for the enactment of an improved farm bill safety net and enhanced support for rice producers in our farm and export programs.
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USRPA's September Schedule Packed with Buyer Visits | |
Visits from key buyers from several Latin American markets this month are a direct result of the USRPA’s market development programs and the annual Rice Market & Technology Convention. With the current U.S. rice harvest in full swing, despite an untimely Hurricane Francine, the USRPA is constantly updating buyers regarding field and milling yields, variety development, and opportunities for both milled and paddy rice. Within one month, USRPA will have hosted buyer visits from Venezuela, Costa Rica, Mexico, Colombia, and Nicaragua. National Rice Month has really kicked off the harvest season! | |
Jay Davis of East Bernard Rice Marketing discuss characteristics of Texas grown varieties to Stefano DiLanzo from GSI-Venezuela, a major importer of paddy rice. | |  |
A Labor Day visit from GSI proved very productive due to the participation of from left Tommy Turner (USRPA board & President Texas Rice Council), Jay Davis (East Bernard Rice Marketing), Stefano DiLanzo from Venezuela and Galen Franz, Texas rice farmer and seed producer who serves on various Texas boards in addition to the USRPA. Thank you to Tommy and Galen for the test cooking session! | | |
Mark Pousson of the South Louisiana Rail Facility explains rice farming and marketing conditions to Stefano DiLanzo. The SLRF has loaded vessels for GSI in the Port of Lake Charles. | | |
Stefano discusses Louisiana varieties with Don Gauthier, Chairman of the SLRF board. | | |
Ryan Carwell, manager for Poinsett Rice & Grain explains barge loading and logistics on the Mississippi River to Stefano DiLanzo. | | |
From left, Bill Weeks (Southern Brown Rice, Weiner, AR), Ryan Carwell (Poinsett Rice & Grain), and from Costa Rica are Ricardo Castro (Grupo Pelon), Federico Ramirez (Demasa) and Antonio Martínez (CIPA) during a tour of Southern Brown Rice. | | |
The discussion of tempering newly harvested rice is of great importance to buyers due to the effect on milling yields as well as cooking quality. | | |
Despite the hurricane rains yesterday, Missouri rice farmers and board members Mitchell Thomas, Eric Hover, and Alex Clark along with Mollie Buckler (COO for USRPA) hosted a dinner for the Costa Rican buyers that allowed for an interesting discussion on the details of rice farming, storage, variety selection, marketing, contract growing, etc. that the “Ticos” found extremely valuable. | | |
USRPA Joins TDA Trade Mission to the Dominican Republic | |
The group at the Port of Caucedo | |
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USRPA joined the Texas Department of Agriculture on a trade mission to the Dominican Republic last week. TDA Assistant Commissioner Dan Hunter led a trade mission, which also included representatives from the beef, grain sorghum, produce, and distribution industries.
The trip coincided with Hub Camara, a business-to-business networking event led by the Santo Domingo Chamber of Commerce (CCPSD) and the Export & Investment Center of the Dominican Republic (ProDominicana) where trade mission participants were able to meet with buyers from throughout Latin America.
“It was an honor to represent the Texas rice industry and USRPA on this trip,” Mollie Buckler, COO of USRPA, said. “We had the opportunity to meet key players in the DR, including importers, processors, port staff, and government officials. The entire group left the trip excited about the possibilities to come in the region.”
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Left to Right: Gustavo Ruiz, Marketing & Merchandising Director, Prodal; Mollie Buckler, Chief Operating Officer, USRPA; Luis Viyella, President, Prodal; and Dan Hunter, Assistant Commissioner, Texas Department of Agriculture. | |
Buckler visits the rice aisle on a supermarket tour. Supermarket tours included Nacional and Bravo, among others. | |
RMTC2025: Secure Your Booth Space ASAP! | |
Picture from Rice Country | |
The view from the combine, courtesy of Casey Wright, Qulin, MO.
Send us your Rice Country and harvest time photos or videos on Facebook, Instagram, or via email!
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Food & Agriculture
Regulatory & Policy Roundup
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World Agricultural Production
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Grain: World Markets & Trade | | |
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January 27 - 28, 2025
28th Annual National Conservation Systems Cotton & Rice Conference
Memphis, TN
More Information
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May 28 - 30, 2025
Rice Market & Technology Convention
Miami, Florida
More Information
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USRPA does not discriminate in its programs on the basis of race, color, national origin, gender identity, sexual orientation, religion, age, disability, political beliefs, or marital/family status. Persons who require alternative means for communication of information (such as Braille, large print, sign language interpreter or translation) should contact USRPA at 713-974-7423. |
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