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In This Issue:
- Market Update: Farmers Pondering 2024 Planting Decisions
- Washington, D.C. Update
- Alex Clark Named 2024 Rice Farmer of the Year
- USRPA Sponsors National Conservation Systems Cotton & Rice Conference
- Take Advantage of Early Bird Pricing for RMTC 2024
- Texas Rice Roundup Auction Preview; Last Day for Hotel Reservations
- Get to Know USRPA Industry Member: Wildfong Enterprises
- Photo from Rice Country
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Market Update: Farmers Pondering 2024 Planting Decisions | |
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Steady business is the name of the game, though it’s been slightly dampened by the freezing temps. Demand has remained strong throughout the marketing year thus far both domestically and internationally, helping to keep prices firm across the chain. Even though the rice complex in India and Asia doesn’t often have a direct impact on pricing in the Western hemisphere, the ban on Indian exports seems to be the tide that raises all ships. Just like Thailand and Vietnam are benefiting from India being out of the market, the U.S. is benefiting from Brazil, Paraguay, Uruguay, Argentina, and other S. American suppliers being short of rice for the past several months. India continues to be a wild card in the minds of U.S. rice farmers about the effect the lifting of the export ban would have on prices…..eventually.
Harvest is underway in Paraguay and getting started in other origins, so the competition in the Western Hemisphere will be heating up in the near term. Easier said than done as early reports indicate inconsistent field yields and quality but it's early of course. Uruguay will not begin until the end of this month. The good news is that demand has remained strong both to Iraq and Haiti, while Mexico continues to procure rice at a faster pace than last year, where significant quantities of paddy rice are benefiting. Just as the rice from South America hits the market, the US will be determining its planting intentions, which we will cover more fully next week. Those intentions were a constant conversation at this week’s National Conservation Systems Cotton & Rice Conference held in Jonesboro, Arkansas. The US Rice Producers Association has been a sponsor of this popular farmer conference since 1999.
A recent GAIN report on Mexico outlines what could be read as good news for the U.S. long-grain industry. Post forecasts that despite slight increases in rice plantings, imports are expected to increase even more based on rising consumption patterns. Plantings are expected to increase only 5% up to 150,000 metric tons, milled basis. The good news is that rice imports are expected to increase by 10% up to 830,000 metric tons. Right now, exports to Mexico are up over 10% from this time last year, so the increased crop size is paying off in the form of increased exports. When supply returns to Brazil and other South American origins, the competition will be fierce for this market; we will see the playing out of any anti-inflationary policies in this new cycle.
In Asia, prices are staying high and not showing signs of stopping. This week Thai prices remained above $650 pmt, and Viet prices hovered just below $645 pmt. Even Pakistan has joined the party and is quoting rice as high as $640 pmt. Now when we compare these prices from the Far East with our Western rice, the spread seems to shrink every week! Right now, the average price of Asian rice is $645 pmt. US quotes are sitting right around $770 pmt…a mere $125 pmt difference. Spreads this small are uncommon, especially when prices are this high.
The weekly USDA Export Sales report shows a nice rebound in net sales of 42,100 MT this week, up 46% from the previous week, but down 24% from the prior 4-week average. Increases were primarily for Mexico (15,700 MT), Japan (13,600 MT), Canada (5,000 MT), Honduras (4,400 MT), and Guatemala (1,200 MT). Exports of 62,700 MT were down 12% from the previous week and 4% from the prior 4-week average. The destinations were primarily to Mexico (33,000 MT), Guatemala (12,600 MT), El Salvador (11,800 MT), Canada (2,400 MT), and Jordan (1,500 MT).
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House of Representatives Passes Tax Package
On Wednesday evening, the House of Representatives passed a tax package addressing business tax policies as well as expanding the child tax credit. The bill also includes provisions to raise limits on the Section 179 expensing provision as well as restore bonus depreciation. These provisions are often used by those in the agriculture sector to write off expenses related to farm equipment and machinery. The bill passed on a bipartisan 357-70 vote, with 169 Republicans and 188 Democrats voting in support. The bill will now move to the Senate. To date, the Senate has not announced plans to consider the bill.
USRPA Calls for Consistent Pesticide Regulation
This week, USRPA joined other agriculture organizations in calling for consistent labeling of pesticides. In a letter to House and Senate Appropriations Committee leadership, they noted that some states and localities have begun implementing regulations for pesticides that contradict the scientific guidance provided by the Environmental Protection Agency (EPA). They ask Congress to consider the impacts of a patchwork of policies and urge the Committees to include language reaffirming federal pesticide labeling uniformity in the final fiscal year 2024 appropriations bill for the EPA. A copy of the letter can be found here.
| Alex Clark Named 2024 Rice Farmer of the Year | |
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Alex Clark was named the 2024 Rice Farmer of the Year at this week’s 27th Annual National Conservation Systems Cotton & Rice Conference.
Clark is a proud third-generation rice, corn, and soybean farmer from Butler County, Missouri. While he has been farming since he graduated from the University of Missouri in 2007, he has been involved with farming his entire life, learning alongside his father, uncle, and brother, with whom he still farms today.
He has been an advocate for the U.S. rice industry for his entire farming career. Serving on both the US Rice Producers Association Board of Directors and the Missouri Rice Research and Merchandising Council, he has traveled to Washington, D.C. and Jefferson City to speak with elected officials and other government leaders on behalf of both Missouri and U.S. rice farmers. He has also traveled on several international trade missions to promote U.S.-grown rice and help establish new markets. Alex most recently served as chairman of US Rice Producers Association from 2021-2023.
In addition to being an advocate for the U.S. rice industry, Clark is an innovator. He recognizes that the industry’s long-term success lies in the ability to be good stewards of our land today. Clark Farms has partnered with companies like Riceland and AgriCapture to implement climate-friendly practices in their operation, including the expansion of their row rice production, tracking water usage and utilizing moisture sensors for both rice and soybeans. His wife, Kathryn Clark, is an Agriculture Instructor at Three Rivers College in Poplar Bluff, and they have three children, Luke, Max, and Lucy.
Clark’s brother, Zane Clark, his farming partner, said it best: “Alex has been a champion for the U.S. rice industry for nearly two decades. From the fields of the Missouri Rice Research Farm to the halls of the Capitol in Washington, D.C., he has tirelessly fought for America’s rice farmers. On the farm, he is always looking for new ideas to innovate. Whether poring over new research or looking into new technology, he is always searching for the next way to improve our operation. Not only is Alex a heavyweight in productivity but he is a selfless father, son, husband, and brother.”
USRPA congratulates Alex on this well-deserved honor.
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USRPA Sponsors National Conservation Systems Cotton & Rice Conference | |
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The Embassy Suites at Jonesboro, AR was the setting for the 27th Annual Cotton & Rice Conference, hosted by the National Conservation Systems. Cotton, Inc. and the US Rice Producers Association are primary sponsors of the conference each year. Over 400 attendees were treated to a wealth of information, including cutting-edge research, firsthand farmer experiences, and successful case studies.
USRPA, a leading sponsor for 25 years, was well-represented at the conference, with over 100 speakers present. Alex Clark, USRPA Board Member, kicked off the Opening General Session with an overview of the organization's current programs and priorities and was awarded the Rice Farmer of the Year award. Dennis DeLaughter, USRPA Board Member from Texas, led a Rice Market Outlook Session. Mollie Buckler, USRPA COO, introduced Dr. Justin Benavidez, Chief Economist, U.S. House Committee on Agriculture as the luncheon keynote speaker on a very well-attended overview of the Farm Bill. Fred Clark, Senior Consultant at Cornerstone Government Affairs in Washington, D.C., presented “Farm Policy still matters, even if the farm bill is late, budgets aren’t great, and trade deals wait”.
Attendees had the opportunity to meet with USRPA staff at the Missouri Rice Council and USRPA booths, and the social reception sponsored by the US Rice Producers Association on Tuesday evening. Thanks to the Mid-America Farmer Grower team for another successful conference.
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Trey Barker and Iris Figueroa at the USRPA booth. | Dr. Justin Benavidez, Chief Economist, U.S. House Committee on Agriculture. | |
Mollie Buckler representing Missouri Rice Council and USRPA. | Mollie Buckler, USRPA COO, introducing Dr. Justin Benavidez. | |
RMTC is a great event... but don't take our word for it! | |
Texas Rice Roundup: Auction Preview | |
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Visit the event page to preview our silent and live auction items.
More items will be added before the event!
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Last Day to Make Your Hotel Reservations for TRR | |
We hear you! As requested, we're providing an extra two days to make your reservations. Don't miss out on the exclusive pricing – book your room by Friday, February 2nd. Stay close to the excitement of the Texas Rice Roundup and have a great time! | |
*Hotel reservations must be made by February 2 to guarantee a special group rate. | |
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Get to Know USRPA Industry Member: Wildfong Enterprises
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Food & Agriculture
Regulatory & Policy Roundup
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World Agricultural Production
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February 7, 2024
30th Annual Arkansas State University Agribusiness Conference
Jonesboro, AR
More Information
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February 13, 2024
University of Missouri Rice Meeting
Dexter, MO
More Information
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February 27, 2024
Missouri Rice Council Annual Meeting & 40th Anniversary Celebration
Poplar Bluff, MO
More Information
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June 4 - 6, 2024
Rice Market & Technology Convention
Cancun, Mexico
Registration
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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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