|
In This Issue:
- Market Update: U.S. Rice Market Off to Slow 2026 Start
- Washington, D.C. Update
- Remembering Carl Krielow
- RMTC Exhibitor Highlights: Kepler Webler & Industrial Pagé Ltda.
- Photo from Rice Country
| |
| U.S. Rice Market Off to Slow 2026 Start | | |
The lack of cash flow is the first thing on all producer minds since we made the turn into 2026. The second thing is planting intentions and the actual drop in acreage. Industry has estimated at least a 30% reduction since November, and things have not deviated much since then. The bulk of the loss will come from Arkansas, where the state is not expected to breach 1 million acres. Barring a horrific storm in India that could put a damper on rice supplies, we don’t foresee any market-driven stimulus that could motivate producers to grow more rice if they have a viable crop alternative.
Prices on the ground remain painful to report, where Texas is sitting at $9.55/cwt. Louisiana is able to achieve a slight premium due to their ability to deliver a homogenous and quality product, but the price is still $9.88/cwt. The market is reporting $9.50/cwt for Mississippi, Arkansas, and Louisiana. We touched on the Colombian TRQ coming later this month in last week’s report, along with steady Iraqi and Haitian business. The rumors cycling this week is the real possibility of gaining access to Venezuela in either paddy or milled form, which is desperately needed to aid in the disappearance of the recently harvested crop. Venezuela continues to import rice from Mercosur, mostly if not all is paddy rice.
The WASDE report was released this week, and while it didn’t move the needle on
prices, it is still a bullish report if you isolate the US. The January WASDE lowered the 25/26 carryover by 2.4 million cwt, down to 34.6 million cwt. This is a welcome surprise, but the decrease was due to a yield reduction by USDA, not a demand increase. World stocks, excluding China, were raised by 1 MMT up to 85.3 MMT. But despite the carryover reduction, global stocks are still so high that prices have not, and are unlikely to react.
Along with the WASDE, the USDA released its January Grains report. The below
graphic shows the consistent slide of global rice prices, where the U.S. has been, and remains the highest priced rice, despite the back-breaking loss to Producers. Prices have dropped approximately 25% from this time last year. Global rice production, trade, and consumption are all up since December, but so are stocks, so we can’t expect relief from the global markets.
| Another vessel leaves the Port of Lake Charles this week with paddy rice from southwest Louisiana and east Texas headed to Honduras. The high milling yield vessel is the second of three this month for the South Louisiana Rail Facility. February looks to be busy as well, as shipments are scheduled for the middle of the month. | | |
Several spending packages in the pipeline for final passage ahead of January 30 funding deadline
Last Thursday, January 8, the House of Representatives passed three FY2026 government spending bills - Energy-Water, Commerce-Justice-Science (CJS), and Interior-Environment. From an agriculture perspective, the Interior-Environment appropriations bill funds key services through the Department of the Interior, Environmental Protection Agency, Forest Service, and other independent agencies. In a third round of votes, the three-bill omnibus was eventually passed intact on the House floor by vote of 397-28. Most of this week, the Senate worked to clear procedural hurdles and eventually passed the three-bill spending bill the evening of Thursday, January 15, by a vote of 82-15. Now, the appropriations omnibus awaits the President’s desk for final approval.
On Wednesday, January 14, another two-bill omnibus was passed by the House of Representatives by a 341-79 vote which included funding for FY26 appropriations for Financial Services and General Government-National Security-Department of State (formerly Department of State-Foreign Operations-Related Programs or SFOPS). Now, the two-bill omnibus heads over to the Senate for final consideration and passage.
Up to this point, a total of six appropriations bills have been enacted into law—including those for Agriculture, Legislative Branch, Mil-Con VA, CJS, Interior, and Energy-Water. The other six remaining FY26 bills are still being funded by the current continuing resolution (CR), which will expire at the end of this month on January 30, 2026.
USRPA signs onto AFBF lead letter urging Congress to support additional agricultural economic assistance
On Thursday, January 16, the American Farm Bureau Federation (AFBF) lead and addressed a letter to the four corners of leadership urging Congress to consider more economic assistance for the agricultural sector. The letter highlights the alarming state of the current farm economy and the significant challenges producers are facing across the country. USRPA was among the 55 signatories of other national agricultural trade associations on the letter. You can find AFBF’s news release here and a link to the letter here.
USDA announces new APHIS leadership
On Monday, January 12, the U.S. Department of Agriculture (USDA) announced that current Animal and Plant Health Inspection Service (APHIS) Administrator, Dr. Michael Watson is expected to retire at the end of January. Beginning in February 2026, Kelley Moore will be the new APHIS Administrator taking over for Dr. Watson. USDA has affirmed that APHIS operations will continue uninterrupted and will remain steadfast in its agency mission to protect the health, welfare, and value of the Nation’s plants, animals, and natural resources. You can see the press release here.
USDA announces new slate of political appointees
Last week, USDA Secretary Brooke Rollins announced a new slate of political appointments to service in several different roles within the agency. These include:
- The Honorable Doug Hoelscher was appointed as Minister-Counselor at the International Food and Agriculture Organizations in Rome, Italy
- Tate Bennett was appointed as Principal Deputy Chief of Staff
- Hailey Ghee was appointed as Deputy Chief of Staff for Operations
- Mireya Brogan was appointed as Chief of Staff for Risk Management Agency
- Troy Romero was appointed as State Director for Rural Development in Louisiana
- Chris Lyons was appointed as State Director for Rural Development in Massachusetts, Connecticut, and Rhode Island
- Dominic Restuccia was appointed as State Director for Rural Development in Michigan
- Richard Stern was appointed as State Director for Rural Development in New Jersey
- Travis Day was appointed as State Director for Rural Development in New Mexico
- Cory Atkins was appointed as State Executive Director for Farm Service Agency in Delaware
- Starlyn Perdue was appointed as State Executive Director for Farm Service Agency in Iowa
- Philip Cowee was appointed as State Executive Director for Farm Service Agency in Nevada
- Wilmer Stoneman III was appointed as State Executive Director for Farm Service Agency in Virginia
- Patrick Bell was appointed as State Executive Director for Farm Service Agency in Washington
- Kennon White was appointed to Assistant Chief South Region for Natural Resources Conservation Service
- Kayleigh Hurley was appointed as White House Liaison
| | March 2, 1954 - January 9, 2026 | | |
The USRPA is saddened by the loss of southwest Louisiana rice farmer and businessman Carl Krielow when his plane crashed in southeast Texas one week ago. Carl, a multi-talented leader was instrumental in the success of the South Louisiana Rail Facility and its efforts to market paddy and milled rice to numerous export destinations and in the domestic market. His leadership service to his community in agriculture and business included his recent activity as a commissioner and President of the Port of Lake Charles. According to port officials, “During Mr Krielow’s tenure as Commissioner, the Port set cargo records in multiple sectors, emerged from unprecedented hurricane damage to new levels of capability, and secured its standing as a top-10 U.S. port.”
His strong support for Louisiana rice farmers through the Louisiana Independent Rice Producers Association and the US Rice Producers Association will forever be appreciated. Our sincere sympathy goes to out to all his extended family and those precious grandchildren Carl so cherish. Rest in peace, Carl.
| | RMTC Exhibitor Highlight: Kepler Weber | | |
Throwback to last year's Western Rice Belt Conference. We hope to see you there next Wednesday!
As always, you can send us your rice country photos by email, or via Facebook or Instagram!
| |
| | |  |
Food & Agriculture
Regulatory & Policy Roundup
| | | World Agricultural Production | | | Grain: World Markets and Trade | | | | | | Inter-Rice World Rice Market Report | | | |
January 21, 2026
Western Rice Belt Conference
El Campo, TX
More Information
| |
January 22, 2026
Southeast Texas Rice Symposium
Winnie, TX
More Information
| |
February 5 - 6, 2026
29th Annual National Conservation Systems Cotton & Rice Conference
Jonesboro, AR
More Information
| |
February 11, 2026
Arkansas State University Agribusiness Conference
Jonesboro, AR
More details to come
| |
February 19, 2026
Missouri Rice Council Annual Meeting
Gobler, MO
More Information
| |
February 24, 2026
University of Missouri Extension Rice Meeting
Dexter, MO
More details to come
| | |
May 26 - 28, 2026
Rice Market & Technology Convention
Cartagena, Colombia
More Information
| | |
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. |
| | | |
