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In This Issue:
- A Message from President and CEO of USRPA, Marcela Garcia
- USRPA Welcomes FECARROZ to Houston, Texas
- Market Update: Farmers Undecided on 2023 Rice Planting Decisions
- Washington, D.C. Update
- 2023 Rice Market and Technology Convention
- Survey: Precision Agriculture Technologies and On-Farm Precision Experimentation (OFPE)
- Photo from Rice Country
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A Message from President & CEO of USRPA, Marcela Garcia | |
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Moving Forward in 2023
On behalf of the USRPA board members and staff, we wish everyone a safe and healthy holiday season. 2022 was a year where all farmers had to expect the unexpected, much like the last several years. Weather extremes, shocking cost of inputs, unanticipated market conditions, and a war that has affected the world in so many ways have all contributed to the struggles of farmers and their families.
While 2022 was not without challenges, USRPA continued its work on behalf of farmers. We hosted our first Farmer Exchange Program trip to southwest Louisiana, hosted hundreds of industry members from 35+ countries at the Rice Market & Technology Convention, and conducted successful promotional campaigns around the world. While these are just a few of this year’s highlights, it was another successful year of advocating for the U.S. rice producer.
Probably at the top of the list for 2023 will be the new Farm Bill, the 19th in history. We continue to educate Congress on the realities of the family farm and there is no doubt that the new Farm Bill will be the most important in the past 25 years. An important challenge is how Congress will deal with inflation. Never before has it been so important for farmers to be involved in numerous policy issues, especially the young farmers. This is not your grandfather’s market!
We look forward to traveling with you to Washington, D.C. in early 2023 and meeting the challenges of the New Year head-on as we continue to be the only rice organization in the United States that is comprised by producers, elected by producers, and representing producers in all six rice-producing states.
We wish you a happy and prosperous New Year!
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USRPA Welcomes FECARROZ to Houston, Texas | |
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As has been the custom for many years prior to the COVID-19 pandemic, the USRPA Board of Directors hosted the Central American Rice Federation (FECARROZ) this week in Houston. Each organization held individual meetings as well as a joint meeting that included an evening reception sponsored by Satake USA. A wide range of topics were discussed by both groups.
At the USRPA Board of Directors meeting, Vernie Hubert and Alice Gomez of Cornerstone Government Affairs in Washington led a thorough discussion on ag policy in light of the recent mid-term elections. The newest USRPA member Daniel Perkins of Arkansas River Rice Mill (ARRM) in Pine Bluff, Arkansas gave an overview of their business while thanking the USRPA for the opportunity to meet everyone, including the Central Americans. Joint projects are already ongoing with USRPA farmers and ARRM. Brad Rose from Rose Research presented a positive evaluation of USRPA’s promotion activities in Mexico. Eduardo Rojas, President of FECARROZ gave a summary of their (and USRPA’s) efforts to modify the CAFTA-DR trade agreement in order to preserve better market conditions for U.S. rice in Central America. The U.S. rice industry could not agree to modifications to the agreement phase-in schedule, resulting in a major shift to MERCOSUR suppliers and expected market pressure from southeast Asia, a situation that is extremely disturbing to all U.S. rice farmers.
Other reports included state updates, committee (International, PAC, Sustainability) reports, the 2023 Rice Market & Technology Convention, the Ray Stoesser Memorial Scholarship, possible Farmer Exchange Program plans for 2023, and regional country updates. Roberto Wong from the Guatemala Rice Council reported on promotions in that market. Curtis McCoy of the USDA’s Foreign Agricultural Service joined the meeting virtually. The FECARROZ board conducted two days of meetings and were joined by Marcela Garcia and Dwight Roberts for market discussions on a number of joint projects.
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Market Update: Farmers Undecided on 2023 Rice Planting Decisions | |
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As the market shuts down for the holidays, there aren’t many fireworks to discuss. Prices on the ground are steady, holding firm in Texas at $17/18, in Louisiana at $17, and in Mississippi, Arkansas, and Missouri at $17-$17.25/cwt. Week after week, it appears to be nothing short of miraculous that prices are firm and mills are busy despite the severe drop in YTD exports. Just this week the USDA Export Sales report offers another dismal number, with sales registering at only 5,700 metric tons, a drop of nearly 100% from the last report. In any case, the smaller crop that just got harvested, and the very serious potential of another small crop next year have put the tight supply in the driver’s seat for the U.S. long-grain market.
The current crop saw severe pressure on the cost of inputs from the Russia/Ukraine war. It’s likely those prices will still be high for rice farmers again, but this coming year rice acres will be fighting against stronger bean prices on account of the government's interest in biodiesel. Reservoir levels in Texas are also of concern and have perhaps flown under the radar because of the severity of the drought in California. It is too early to make firm decisions on the size of next year’s crop, but there are several factors that seem to be working against the return to a “normal” size long grain crop when we look at planting season.
The December FAO Rice Price Update reports that the All Rice Price Index averaged 114.6 points in November, which is up 2.3% from October, and 14.7% above its value a year ago. This increase from last month is driven largely by a 2.4% monthly rise in Indica prices, which can likely be attributed to the tariffs coming out of India and the ensuing impact on prices. The strong value of the dollar also cannot be understated here as well.
In Asia, prices remain firm and business is steady. Thai and Viet prices are $453pmt and $455pmt respectively this week, where rice out of Myanmar is quoted at $420pmt and Pakistan at $456pmt. India remains the lowest with prices bumping in the $400pmt range.
The weekly USDA Export Sales report shows net sales of 5,700 MT this week, down 93% from last week. Exports of 15,300 MT were up 72% and went primarily to Haiti (7,100 MT), Mexico (3,500 MT), Canada (2,700 MT), Saudi Arabia (1,000 MT), and Belgium (300 MT).
In the futures market, the average daily volume dropped 30% down to 1,189, and open interest stayed flat at 7,715.
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Appropriations Update
On Tuesday it was announced Senate Appropriations Committee Chairman Patrick Leahy (D-VT), Vice Chairman Richard Shelby (R-AL), and House Appropriations Committee Chair Rosa DeLauro (D-CT) have reached an agreement for topline funding levels for the fiscal year 2023. The federal government is currently operating under a continuing resolution (CR) set to expire on Dec. 16. On Wednesday evening, the House voted to extend the CR through Dec. 23 as negotiations continue.
Ag Labor and Immigration Legislation Update
Sens. Michael Bennet (D-CO) and Mike Crapo (R-ID) have been working for months on a compromise to the Farm Workforce Modernization Act (FWMA), but this past week it was announced that Sen. Crapo walked away from negotiations and will no longer be continuing the effort as the Republican leadership. At this time, Sen. Bennet still plans to move forward with the legislation. The House passed the FWMA in March 2021 on a bipartisan 247-174 vote. Since then, the legislation has been held up in the Senate, where it would need ten Republican votes, as well as the entire Democratic Caucus’ support to pass. The current legislation being proposed would include wage stabilization, limitations to employer liability, increases for year-round visas, and E-Verify provisions. Floor consideration and the path forward are extremely uncertain at this time.
USDA Announces $325 Million in Awards for Climate-Smart Commodities Partnerships
On Monday, Department of Agriculture (USDA) Secretary Tom Vilsack announced $325 million in awards for 71 projects through the Partnerships for Climate-Smart Commodities effort. This effort is aimed at expanding markets for America’s climate-smart commodities; leveraging the greenhouse gas benefits of climate-smart commodity production; and providing direct, meaningful benefits to production agriculture, including for small and underserved producers. In September, USDA announced $2.8 billion in awards for 70 projects through this effort. The list of projects receiving funding can be found here.
|  | Rice Market & Technology Convention | |
It's time to register for the rice industry's premier event! Featuring the strongest and most relevant agenda designed by rice industry members from throughout the world, coupled with an outstanding trade show, it is known as one of the most important and widely attended international events in the Western Hemisphere. Click here to register. | |
Survey: Precision Agriculture Technologies and On-Farm Precision Experimentation (OFPE) | Reagen Tibbs, a graduate student in the Department of Agriculture at Illinois State University, is asking for your help with his master’s thesis research by inviting you to participate in an anonymous online survey. This survey includes questions about precision agriculture technologies and on-farm precision experimentation (OFPE), along with other related topics. | |
USRPA board members and staff joined together for the board meeting in Houston, TX. Send us your rice country photos on Facebook, Instagram, or via email! | | |
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Food and Ag Regulatory and Policy Roundup | | |
World Agricultural Production | | |
Grain: World Markets and Trade | | | |
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Osiriz / InterRice
Monthly Report No. 225
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January 31 - February 1, 2023
26th Annual National Conservation Systems Cotton & Rice Conference
Baton Rouge, Louisiana
More Information
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February 8, 2023
2023 A-State Agribusiness Conference
Arkansas State University Agribusiness Conference
Jonesboro, AR
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February 28, 2023
Missouri Rice Council Annual Meeting
The Gathering @ Versity Crossing
Dexter, MO
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May 30 - June 1, 2023
2023 Rice Market & Technology Convention
Puerto Vallarta, Mexico
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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