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Volume 19, Issue 26

July 8, 2022

In This Issue:

  • Market Update: Intense Heat Throughout Delta & Gulf Coast
  • USRPA Holds Summer Board Meeting in Missouri
  • Washington, D.C. Update

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Market Update: Intense Heat Throughout Delta and Gulf Coast

Steady as she goes. On the ground, the crop is progressing well in all regions at this point. Mississippi did have problems with planting and will likely experience a decrease in their total acres. But the crop in Arkansas is trending nicely, as is Louisiana. The heat that plagued Texas in previous weeks alleviated a bit, but industry remains cautiously optimistic. Managing weather and water conditions are always a challenge. As one farmer says, “until the crop is cut and in the bins we don’t know what we have.” The holiday week led to a quiet market environment, with little change from previous reports. Paddy prices on the farm remain high, as do milled rice prices compared to other origins in the Western Hemisphere, and even more so when compared to the Eastern Hemisphere.


The price disparity that we continue to discuss between U.S. prices and Asian prices has not yet resulted in an intrusion of Asian rice into historic U.S. markets. However, the intrusion of rice from both Brazil and Uruguay has taken a direct bite out of U.S. market share. This of course is exacerbated by the removal of tariffs from countries like Mexico to help fight food inflation. Our milled rice exports continue to be dismal, while paddy exports are holding steady from previous reports. The U.S. market finds itself in an interesting spot as trading companies are actively offering and selling Mercosur origin rice to U.S. customers like Mexico and others in Central America. All the while, the cost of inputs are so high for U.S. producers, profit margins have been squeezed to bare minimums. 


A USDA GAIN report on Brazil that was published on July 1 posts a minor reduction of only 1% in expected acreage in Brazil because of decreased rainfall and increased input costs. More importantly than that small reduction, however, is that the yield is expected to decline as well—both because of decreased inputs because of their high costs, along with drier than normal weather. The higher price of corn and soybeans in the region is also pulling farmers away from planting rice in the irrigated area that comprises the majority of the rice growing region. The report projects an increase in exports in the 2022/23 marketing year by 100,000, moving from the expected 600,000 metric tons up to 700,000 metric tons, which is a 17% increase. This increase in exports directly eats into the US market share in Mexico and other Central American customers. There will be some hindrances in exports, however, that include a clogged logistics system, as well as the internal decision of supplying the domestic market while balancing exports—the reduction in acreage in the past two years makes it difficult for Brazil to supply both.


Finding a savior in a new milled rice customer is the focus of mills while service core domestic business. Farmers focus on growing their crop as they balance input costs against yields at the time of harvest.

USRPA Board of Directors Holds Summer Meeting in Missouri

This week in Cape Girardeau, Missouri, the Board of Directors of the US Rice Producers Association held their summer board meeting that included attendance in-person as well as virtually. After reports on each of the six rice states and a financial report, Vernie Hubert and Alice Gomez from Cornerstone Government Affairs updated farmers on a number of current issues on Capitol Hill and the USDA. Marcela Garcia and Grace Wang discussed the organization’s international programs while Mollie Buckler joined them in an evaluation of the successful Rice Market & Technology Convention recently held in Cancun, Mexico. Staff from the USDA’s Foreign Agricultural Service participated in a good discussion with board members and complimented the USRPA on their progress and successes. The meeting ended with Mollie leading a discussion of the USRPA’s Farmer Exchange Program that educates young farmers on a number of challenges in the rice farming industry while conducting farm and facility visits in different states.


After the meeting concluded, the board members headed further into the Bootheel for a visit with Zack Tanner at Tanner Seed Company near Bernie, and a stop at the Missouri Rice Research Farm near Glennonville.

Zach Tanner, owner of Tanner Seed Company in the Missouri Bootheel, explains seed variety production projects to rice farmers from Texas, Louisiana, and Missouri.

USRPA board members took advantage of their summer board meeting taking place in Cape Girardeau to pay a visit to Zack Tanner and Tanner Seed Company. From left are Galen Franz (Inez, Texas), Neal Stoesser (Raywood, Texas), Dustin Watkins (Welsh, Louisiana), Mitch Thomas (Neelyville, Missouri), Mark Pousson (Welsh, Louisiana), Alex Clark (Poplar Bluff, Missouri) and Zack Tanner. Zack serves on the board of the Missouri Rice Council.

Neal Stoesser, a rice farmer from Raywood, Texas and vice-chairman of the USRPA checks in with his farming operation in Texas while on a visit to the Missouri Rice Research Farm.

At the Missouri Rice Research Farm are from left Mitch Thomas, Galen Franz, Dustin Watkins, Alex Clark and Mark Pousson. Both Thomas and Clark serve on the Missouri Rice Council and USRPA Board of Directors. Alex is the current USRPA chairman.

Washington, D.C. Update

The Department of Labor sent its final rule on the H-2A temporary agricultural program to the White House Office of Information and Regulatory Affairs for approval, the final review step before publication to the Federal Register. In December 2021, the Department published draft regulations to the Register to raise required wages for farmworkers on H-2A visas. The proposed rule would also require all workers who fall within multiple job classifications to be paid under the occupation with the highest wage.


This week, a dozen House Republicans sent a letter to President Biden calling to initiate a dispute settlement case against India for violating World Trade Organization (WTO) commitments. The letter cites Indian over subsidization of rice and wheat as disruptive to global markets and US producers. The letter urges the President to file a formal request against India and to continue monitoring WTO members’ domestic support programs. The letter can be found here.


The World Bank published an article on the impacts of export restrictions on food prices and global food security. The article notes rice prices have increased by 12.3% this year as a result of export bans implemented in response to the war in Ukraine and large exporters such as India reducing their supply.

USDA Reminds Producers to File Crop Acreage Reports


Agricultural producers who have not yet completed their crop acreage reports after planting should make an appointment with their local Farm Service Agency (FSA) service center before the applicable deadline. July 15 is a major deadline for most crops, but acreage reporting deadlines vary by county and by crop. Producers should make an appointment as soon as possible to avoid missing earlier deadlines.

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Cornerstone Trade Update

July 8, 2022
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Food and Ag Regulatory and Policy Roundup

July 5, 2022

Brazil: Grain & Feed Update

Post revised its estimated rice harvest area to 1.62 million hectares for MY 2021/22 because of a decrease in rainfed rice and an increase in cost of production.

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FAO Rice Price Update:

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Arkansas Rice Updates

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Arkansas Row Crops Blog

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Upcoming Events

July 14, 2022

Texas A&M AgriLife Research Center 74th Annual Rice Field Day Tour & Program, Beaumont, Texas

August 11, 2022

RiceTec Field Day (in-person), Harrisburg, Arkansas

August 23, 2022

Missouri Rice Research & Merchandising Council Field Day,

Glennonville, Missouri

More Information

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