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In This Issue:
- Market Update: Need for a New Farm Bill Gaining Attention
- Washington, D.C. Update: USRPA in D.C. This Week Urging Producer Assistance
- USRPA Participates in Annual USAEDC Workshop
- International Updates from China & Guatemala
- Southern IPM Center Pest Management Survey
- RMTC 2025: Early Bird Pricing - Deadline Approaching!
- Photo from Rice Country
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Need for a New Farm Bill Gaining Attention | |
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The market on the ground is relatively unchanged from last week — and the last several weeks for that matter. What is happening now though, is a large contingent of agricultural groups have descended on Washington, D.C. in hopes of getting a 1-year reauthorization of the Farm Bill with improvements to Title 1 and Title 11 (crop insurance), as well as an extension on all other titles. The goal will then be to write a new 5-year bill with an increased baseline. That is the plan as of this writing, but more to develop on this front. Rice and all other commodity groups are in desperate need of a modernized farm bill to assist in the current production and marketing environment. Read more about the situation in the Washington, D.C. Update below.
In light of a global situation that continues to be dominated by India’s release of its rice supplies, it feels like a literal race to secure demand before the price drops further. It is not a good situation for any seller/exporter, which in turn creates a great buyer’s market. In light of that, there are some important developments to discuss in South America that will have a material impact on our current marketing efforts in the coming weeks, as our quality is suffering this year… again.
We have mentioned in previous reports that not only is our Haitian market in limbo because of the political violence there, but also because Pakistan is making inroads at significantly lower prices than we can offer. This started as a short-term, stop-gap solution for Haiti, but now with Pakistan’s large crop, exportable surplus, and competition from India, the Haitian milled market is not guaranteed to return to its normal volume as it was once thought. There is still a strong foothold and demand for U.S. rice — make no mistake about it — but Pakistan has a toehold and won’t let go without a fight. Add the fact that the security situation is not improving but worsening (at least this week), it remains to be seen how and when some measure of any stability will occur.
In Argentina, supply this year is also expected to be up 10% from USDA projections. This normally wouldn’t be a significant factor, but with all that’s happening in the rice export market, it’s one more chit to tip the scale in the wrong direction. It is possible that weather patterns won’t materialize as expected and a dry cycle will take out some acreage, but not enough to result in a below-average crop. The overall outlook for new crops in neighboring Brazil, Uruguay, and Paraguay is promising, assuming the weather continues to support. A significant increase in production is predicted and harvest should begin before New Year’s.
To summarize the global pricing matrix, India and Pakistan are duking it out at $450 pmt, while Thailand is on the bubble at $500 pmt, and Vietnam is holding closer to $530 pmt. In the Western Hemisphere, prices are much higher, but with such a spread, the strength of freight advantages may weaken. Uruguay and Argentina are reported at $700 pmt, with Brazil reported in the $750 pmt range, and the United States on top at $800 pmt. Even being the highest-priced rice in the matrix, growers still aren’t breaking even. It is a strange year indeed, but with the hope that a new administration may be open to resourcing Cuba with basic foodstuffs and supplies, there may be a bright spot on the horizon.
The weekly USDA Export Sales report shows net sales of 68,900 MT, down 38% from the previous week, but up 6% from the prior 4-week average. Exports of 36,800 MT were down 30% from the previous week and 40% from the prior 4-week average.
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USRPA's Mollie Buckler with Trevor White and Harlea Hoelscher, staff members of the House Committee on Agriculture | |
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USRPA Visits DC to Urge Congress to Provide Producer Assistance
This week, USRPA’s Chief Operating Officer, Mollie Buckler, visited Capitol Hill to urge Congress to act on the Farm Bill and provide economic assistance to rice producers before Congress adjourns for the year. Buckler visited with staff for the Missouri congressional delegation and the House and Senate Agriculture Committees. During these meetings, Mollie shared how the economic conditions facing rice farmers are driving the need for economic assistance.
Although the need for economic assistance as part of a disaster bill is generally acknowledged, there are challenges to overcome if economic assistance is to be enacted before the end of the year. One of the major issues is of course budgetary. Estimates of the cost of disaster assistance plus economic assistance bill are as high as $45 billion. Another issue being discussed is how to deliver economic assistance. Assistance delivery methods being explored include the FARM Act (H.R. 10045), delivery through the crop insurance program, and alternative methods through existing farm programs (e.g. PLC / ARC).
USRPA continues to advocate for economic assistance sufficient to provide real assistance to rice producers in a timely fashion. The assistance needs to be provided in amounts that farmers and their lenders can calculate with certainty and predictability and delivered swiftly without regulatory delays or cumbersome application processes.
White House and Congress Make Progress on a Disaster Package
On Monday, the White House sent Congress a request for $98.6 billion in emergency relief to help mitigate damages from the natural disasters that have occurred in 2024. This total was $23.5 billion for USDA, with $21 billion requested to assist crop producers impacted by natural disasters. On Wednesday, the Senate Appropriations Committee held a hearing to discuss the President’s request. Sens. Jon Ossoff (D-GA) and Thom Tillis (R-NC) joined the Committee to discuss how the recent natural disasters have harmed their states, noting the impacts on agriculture. Several members of the Committee took time to highlight the state of affairs in the farm country and how natural disasters are worsening the condition, including incoming Senate Agriculture Committee Chairman John Boozman (R-AR). The White House’s request can be found here and a recording of the hearing can be found here. Senator Boozman has also advocated within Congress to provide economic loss assistance for producers.
Chairwoman Stabenow Introduces Farm Bill Proposal
On Monday, Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) introduced the Rural Prosperity and Food Security Act (S. 5335), her proposal for the next farm bill. This bill would set the reference price for rice to $14.70 per hundredweight. The bill would also double funding for the Market Access Program and Foreign Market Development Program. Unfortunately, the bill would also make many current farm program participants ineligible for farm program benefits.
Chairwoman Stabenow’s bill was not well received. For example, soon-to-be-Chairman of the Senate Agriculture Committee John Boozman (R-AR) said:
“An 11th-hour partisan proposal released 415 days after the expiration of the current farm bill is insulting. America’s farmers deserve better.”
In other words, Chairwoman Stabenow’s bill was dead on arrival. As Senator Boozman alluded, the 2018 farm bill expired on September 30, 2023, and was extended last fall until September 30, 2024. Congress has begun discussions to extend the now-expired farm bill for one year. This extension is expected to be enacted before the end of the calendar year. Hopes are that next year with the Congress under unified Republican control we may see a farmer-friendly farm bill make it across the finish line.
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USRPA Participates in Annual USAEDC Workshop | |
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USRPA's Mollie Buckler and Iris Figueroa represented the organization this week at the annual U.S. Agricultural Development Council (USAEDC) Workshop in Baltimore. It is always a fantastic opportunity to reconnect with other USDA cooperators and partners from USDA's Foreign Agricultural Service.
MAP modernization, the future of the WTO, creative marketing tactics in new markets, and the upcoming Year of the Woman Farmer were among the many other topics discussed at this three-day event.
| International Year of the Woman Farmer panel discussion with Candice Bruce, Director, International Year of the Woman Farmer Initiative, USDA-FAS; Jennie Schmidt, Farmer, Schmidt Farms Inc.; Alexis Taylor, Under Secretary, USDA; and Mark Slupek, Deputy Administrator, USDA-FAS. | Best Practices in Contracting, Compliance, and More Workshop by Michael Schumyater, Finance Director, Eliasan Consulting; Curt Alt, Sr. Director, Program Operations, USDA-FAS and Katina Cooper, Acting Director, Compliance and Security Division, USDA-FAS. | |
USRPA Joins U.S. Multi-Commodity Cooperators' Mission in China | |
USRPA visited the U.S. Embassy in Beijing and met with Ambassador Nicolas Burns, Minister Counselor for Agriculture Affairs Robert Hansen, and staff. | |
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Along with 14 U.S. agriculture groups, US Rice Producers Association staff member Grace Wang traveled to China earlier this month on a U.S. Multi-Commodity Cooperators’ Mission. The mission included a visit to the 7th China International Import Expo (CIIE) and the U.S. Pavilion, as well as presence at the US-China Agriculture Trade Cooperation Forum. At the Forum, participants shared products information and their views in terms of trade relationships with China. Leaders from the U.S. agriculture sector emphasized the importance of trade with China, anticipating that strengthened ties in agriculture will benefit global trade and a more sustainable future.
The trip provided USRPA an excellent opportunity to collaborate on such an important effort and at such a critical time in the Chinese market, which ranked 3rd in U.S. agriculture trade in 2023, behind Mexico and Canada.
USRPA also took the opportunity to visit with colleagues from China National Association of Grain Sector (CNAGS), China Agriculture Association for International Exchange (CAAIE), and several other industry members to discuss strengthening cooperation towards market development of US rice. Store visits were also conducted to continue to gain market insight and knowledge of the development in the market.
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USRPA participated in the US-China Agriculture Trade Cooperation Forum, sharing the U.S. rice industry perspective. | |
A visit with the Agricultural Trade Office in Shanghai. Discussions focused on current production and market issues. | |
Meeting with leaders of CNAGS, China National Association of Grain Sector, at their office in Beijing. | |
Sharing a meal with representatives of CAAIE, China Agriculture Association for International Exchange, in Beijing. | |
Imported rice on high-end retail store. Rice is stored in a temperature-controlled cooler to keep freshness and flavor. | |
Pre-Thanksgiving Celebration at Chief of Mission Residence in Guatemala City | |
On Thursday, November 21, U.S. Ambassador to Guatemala Tobin Bradley hosted a special Thanksgiving lunch at at the Chief of Mission Residence (CMR) for approximately 50 guests. The Ambassador’s chef prepared a unique meal, featuring a twist on the traditional Thanksgiving menu, with a focus on two U.S. products: turkey and rice.
ARROZGUA, in collaboration with the US Rice Producers Association and the Culinary Academy of Guatemala, had the honor of being one of the key supporters of the celebration.
| Patrick H. Ventrell, Deputy Chief of Mission in Guatemala, addressing the guests at the luncheon. | |
Guests were treated to a delicious meal where turkey and RICE were highlighted. | |
Edith Vazquez, USDA-FAS Marketing Specialist in Guatemala, Roberto Wong, ARROZGUA, Mario Solorzano, Arrocera Los Corrales, and Jose Antonio Pivaral, Grupo San Luis, were among other guests invited to this event. | |
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The event included graduates from U.S. universities who were part of a USDA agricultural youth development program, USDA representatives, and social media food influencers. The influencers, invited through the Embassy’s Diplomatic Affairs Section (DAS), shared their experience with their followers, highlighting the U.S. products featured in the meal.
Although Thanksgiving is a U.S. tradition, it has become increasingly popular in Guatemala, with more families incorporating it into their celebrations each year. The event aimed to promote U.S. products and strengthen cultural ties. In 2023, Guatemala imported $1.6 billion worth of U.S. agricultural products, including $31.2 million in rice.
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Southern Integrated Pest Management Center Seeks Survey Respondents Regarding Pest Management in Rice | |
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A Note from the Southern IPM Center:
Hello fellow rice enthusiast,
Thank you for your interest in this preliminary survey about your pest management
experiences in the rice industry. Industry professionals such as you are the only source we have to collect information on this topic and we value your opinions and perspective.
Please use the link below to access and complete the questionnaire, which will take
approximately ten minutes. Please complete this survey by December 31st.
Your participation is voluntary and confidential. You may stop participating at any time by closing the survey. Participating in this study isn't an expectation nor requirement of any affiliation you have with NC State or any member of the research team.
You must be 18 years of age or older, reside in the United States, and be involved in the rice industry to participate in this study. You will not be compensated for participating.
If you have any questions, please contact me using the information below.
Dr. Tegan Walker
Evaluation Specialist
Southern IPM Center
Email: twalker6@ncsu.edu
Phone: 919-515-0496
We look forward to your response!
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RMTC 2025: Early Bird Pricing - Deadline Approaching! | | |
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Food & Agriculture
Regulatory & Policy Roundup
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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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