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In This Issue:
- Market Update: Spring Planting Underway Along Gulf Coast; Total U.S. Acres is the Question
- Washington, D.C. Update
- Missouri Rice Council Hosts 40th Annual Meeting
- Register for RMTC 2023 at the Early Bird Rate
- Photos from Rice Country
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Market Update: Spring Planting Underway Along Gulf Coast; Total U.S. Acres is the Question | |
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It’s the moment we’ve all been waiting for — we are far enough into the year that we can put some numbers around the expected acreage this year. The good news is it is expected to be up from last year. The bad news is that it’s still far short of normal, and likely not enough to garner significantly more exports all things being equal. All acreages are estimates, and could still vary quite a bit in the coming weeks and months, but this will at least help offer some context as we move into next year’s intentions.
To kick it off, we expect Arkansas to have increased its long grain acreage by 13%, up to approximately 1.15 million acres from 1 million acres last year. Medium grain acres are expected to increase by almost 15%, up to 150,000 acres from 106,000 acres last year. In all discussions medium grain related, save for California, acres are limited by seed availability this year. In Louisiana, long grain acres are looking to decrease about 5%, down to 350,000 acres, while the medium grain is expected to jump 25% up to 75,000 acres from 55,000 acres a year ago. So overall, Louisiana will produce the same acreage, just more of it will go to medium grain. Mississippi looks to be rebounding this year, expected to increase about 25% up to 115,000 acres from only 85,000 acres last year. All are expected to be long-grain. Missouri is expecting a significant bump in acres as well, to the tune of a 20% increase. All of that will come in the form of long-grain rice, moving from 150,000 acres last year up to 190,000 acres this year. Texas is the stand-alone reduction of all the rice-producing states but on account of drought. It’s expected that the Lone Star State will decrease by nearly 30%, down to 145,000 acres from last year’s number of 190,000 acres. And moving to the west coast, the rain and snow in California have finally arrived, and expectations are that medium grain acres will reach at least 425,000 acres this year, with many optimistic it will be even more than that.
In summary, total long grain acreage is expected to be about 1.9 million acres in the coming year, up 8% from last year’s 1.8 million acres. Medium grain acres are expected to be 660,000 acres, up 35% from last year’s 420,000 acres. And in total, all acres are looking to be 2.6 million acres, up 15% from last year’s 2.22 million acres. In 2020 when long grain acres were 2.33 million, the average farm price was $12.60, and in 2021 when long grain acres dropped to 1.97 million, the average farm price bumped a dollar up to $13.60. In the current marketing year with 1.8 million acres of long grain, the average farm price sits at $16.90. The 2023 estimates of 1.96 million acres of long grain look most like the 1.97 million acres of 2021 when the average farm price was $13.60; however, a lot has changed since then with inflation and cost of inputs, so it is difficult to gauge with accuracy specific pricing.
What we do know is that exports have reached all-time lows, and we need additional supply, trade servicing, and strong trade relationships to see a re-energized export market. The weekly USDA export sales report shows net sales of 17,600 MT for this week, down 45% from the previous week and 69% from the prior 4-week average. Increases primarily for Japan (13,200 MT), Canada (3,400 MT), Saudi Arabia (600 MT), and Austria (300 MT), were offset by reductions for Honduras (100 MT). Exports of 31,500 MT were up 42% from the previous week, but down 14% from the prior 4-week average. The destinations were primarily Japan (26,000 MT), Canada (2,400 MT), Mexico (2,100 MT), Austria (300 MT), and Saudi Arabia (300 MT).
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House Agriculture holds a hearing on challenges facing American agriculture
On Tuesday, the House Agriculture Committee held a hearing to discuss the challenges facing American agricultural producers and consumers. Members of Congress and witnesses discussed regulatory challenges regarding pesticides and waters of the United States, high input costs, impacts of global markets on domestic producers, consolidation within the agricultural industry, and challenges in the transportation sector. This was the first hearing in the House of the 118th Congress. A recording of the hearing can be found here.
Senate Agriculture holds a hearing on conservation and forestry
On Wednesday, the Senate Agriculture Committee held a hearing on forestry and conservation programs as it prepares for the upcoming farm bill. Members of the committee and witnesses from the Department of Agriculture discussed how the programs are currently operating and provided feedback on improving access in the future. During the hearing, Committee Ranking Member John Boozman (R-AR) noted the importance of flooded rice fields in providing habitat for migratory waterfowl and advocated for protecting both wildlife and rice farmers through far bill conservation programs. A recording of the hearing can be found here.
House Transportation & Infrastructure votes to overturn WOTUS rule
On Wednesday, the House Transportation & Infrastructure Committee voted to advance a resolution overturning the Biden Administration’s WOTUS rule. The Committee voted on a party-line 30-22 vote to approve the Congressional Review Act resolution of disapproval. The resolution will now move to the House floor for full chamber consideration.
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Missouri Rice Council Hosts 40th Annual Meeting | |
The Missouri Rice Research & Merchandising Council hosted their 40th Annual Meeting this week at The Gathering in Dexter, MO. The program included updates from Dr. Justin Chlapecka, Missouri Rice Extension Specialist; John Hensley of Missouri Department of Agriculture's Ag Business Development team; Mollie Buckler, USRPA Chief Operating Officer and staff liaison to MRRMC. USRPA consultant Stuart Hoetger provided a market update virtually.
At the end of the event, MRRMC Outgoing Chairman David Martin recognized the council's incoming officers and recognized outgoing council member Justin Landers, who served MRRMC and USRPA for 16 years.
| MRRMC Chairman David Martin and outgoing MRRMC member Justin Landers. Thank you, Justin, for your 16 years of service to MRRMC and USRPA! | |
USDA-FAS Export Sales Reporting & Maintenance System Upgrade | |
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The Export Sales Reporting (ESR) Program is mandated by Congress and U.S. exporters are required to submit their export sales and export data weekly into the Export Sales Reporting and Maintenance System (ESRMS).
The U.S. Department of Agriculture-Foreign Agricultural Service (USDA-FAS) began upgrading the close to 30-year-old ESRMS in 2019. As USDA-FAS moves closer to launching the new ESRMS 2.1, U.S. exporters reporting under the ESR Program have been invited to participate in ESRMS 2.1 Outreach Sessions.
These outreach sessions provide U.S. exporters the opportunity to see the ESRMS 2.1 user interface; the updated data entry screens and processes for manually entering or electronically uploading their weekly data submissions; and to provide feedback or suggestions on how ESRMS 2.1 can be improved before launching the system.
USDA-FAS scheduled six outreach sessions beginning in January 2023. Three outreach sessions remain. USDA-FAS strongly encourages those U.S. exporters who have not taken attended an outreach session to signup for one of the three remaining sessions at the following site: https://forms.office.com/g/NGucGyH3PC Please fill in the required information and indicate which session(s) you plan on attending.
In addition, USDA-FAS will be providing information on ESRMS 2.1 virtual training sessions as well as user acceptance testing (UAT) in the next several months. We appreciate that everyone’s schedules are very busy, but ensure you that participating in the ESRMS 2.1 Outreach Sessions, virtual training, and UAT, will prove very beneficial when ESRMS 2.1 is launched.
Finally, for easy reference, USDA-FAS is posting all ESRMS 2.1 Outreach Sessions and virtual training classes online at the following site: USDA Foreign Agricultural Service ESRMS Announcements.
USDA-FAS looks forward to a smooth transition to ESRMS 2.1. Please reach out to Amy Harding ESR Team Lead at amy.harding@usda.gov or 202-641-4935 should you have any questions or concerns.
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Register for RMTC 2023 at the Early Bird Rate | |
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Twelve days left to secure your early bird registration for $600pp.
Don't miss out! Register today by clicking on the link below.
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SLRF is busy shipping via rail, barge & a vessel this week to Mexico, Central, and South America.
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 | | |
FAO Rice Price Update March 2023
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FAS Accepting 2023 McGovern-Dole Applications | | |
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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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