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Secretary Vilsack Testifies Before the Senate Agriculture Committee
On Wednesday, Secretary of Agriculture Tom Vilsack testified before the Senate Agriculture Committee. Republicans and Democrats agreed on the importance of passing a bipartisan farm bill to provide stability for producers and the agriculture sector. Republicans were concerned about high input costs and inflation as well as stagnant commodity prices while Democrats called attention to the impacts of nutrition and conservation programs and the need to protect their funding. Other topics discussed in the hearing included California’s Proposition 12, the Secretary’s use of the Commodity Credit Corporation, protecting small and medium-sized producers, and the agricultural trade deficit. This hearing was the second time Secretary Vilsack testified before Congress recently, as the House Agriculture Committee held a hearing on February 7. A recording of the hearing can be found here.

The market is moving forward in a firm direction, albeit without any significant changes. The domestic millings are strong, making it difficult to even procure rice for new or export customers. We have been noting for weeks the coming harvest in South America and the increased competition, but the expectation of a shorter crop and the continued strong demand is putting a bit more strength in the futures market than initially expected. It will be interesting to see how it plays out once harvest is officially underway, but signals as of writing are that prices may not soften much. Harvest has begun in Uruguay, Argentina, Paraguay, and Brazil, but not in earnest or with enough results to provide any actionable intelligence at this point. Weather-related incidents throughout the growing season have resulted in a late maturing crop with inconsistent field yields reported.
Prices on the ground are strong too, when demand surfaces. It is getting more and more difficult to find available supplies in Texas, but prices are reported as high as $19/cwt right now. Louisiana is firm at $18.52/cwt. Mississippi, Arkansas, and Missouri are all at $18.00-$18.25/cwt. When taken together, the current cash price, the pace of exports, and a smaller crop in South America are making a strong case to plant rice this year. Our surveys indicate a little rice has already been put in the ground in Texas ahead of schedule, but that is the outlier. We are still expecting a crop that exceeds 3 million acres this year. A few fields along the Gulf Coast have been planted during the last days of February as usual to hopefully obtain a good ration crop yield.
In the global marketplace, Asian prices are officially softening, with Vietnam's dropping below $600 pmt for the first time in several months to $590 pmt. Thai prices remain above the $600 mark but have dropped down to $620 pmt this week. At first glance, this could be taken as a foreshadowing of the easing of the Indian export ban, but upon further inspection, the softening is more a result of new supplies becoming available. Indonesia will be coming to market for another sizable tender in the coming weeks, which is expected to buoy prices back up. The spread is once again widening in comparison to U.S. long grain, where prices have now reached $800 pmt for USA 5%. Reports of Thai bulk rice vessels headed to Mexico are rumored to be sold at $710 CIF Veracruz if not lower.
The weekly USDA export sales report shows net sales of 60,900 MT this week, up noticeably from the previous week, but down 27% from the prior 4-week average. Increases primarily for Mexico (21,400 MT), Haiti (15,300 MT), the Dominican Republic (12,200 MT), Venezuela (6,300 MT), and Canada (2,100 MT). Exports of 96,800 MT were up 6% from the previous week and 18% from the prior 4-week average. The destinations were primarily Mexico (28,200 MT), Venezuela (25,800 MT), Honduras (21,700 MT), Haiti (15,300 MT), and Canada (2,700 MT).

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The US Rice Producers Association (USRPA) amplifies farmers' voices, while the Ray Stoesser Memorial Scholarship champions the future of agriculture. The USRPA's commitment to nurturing the next generation of agriculture is commendable, ensuring the longevity of America's rice industry in both national and international markets.

Being awarded the Ray Stoesser Memorial Scholarship stands as my proudest achievement and greatest honor thus far. To me, it was not just a scholarship but a pivotal moment that transformed my life. The shift from my previous goals and aspirations to the current ones stems from my time as a scholar with the USRPA, leading me onto a new career path and igniting a fervor for advocating for the rice industry's future.

I may be partial, but I hold firm that the U.S. rice industry comprises the most resilient, ambitious, and devoted individuals I've encountered. Despite the challenges of farming in today's economy, rice farmers persist in nourishing our nation amidst adversity. Beyond farming, many have remarkable stories of accomplishments outside the agricultural realm, from establishing seed companies to holding leadership roles in various organizations, exemplifying the inspirational spirit of USRPA farmers.

My time in Washington exceeded my expectations, transcending a mere advocacy visit to Capitol Hill. It provided invaluable insights not only into rice industry challenges but also the unwavering dedication of those safeguarding its future. As a part of the upcoming generation in agriculture, it is a privilege to be surrounded by farmers who are deeply passionate about their craft and the purpose behind it.

USRPA is extremely proud to have had Gayla on this trip and appreciates all the hard work she has dedicated to advocating for our farmers.

Members of the Missouri Rice Council had a productive series of meetings at the State Capitol yesterday, culminating in Senator Jason Bean's exceptional Taste of the South event. The council is grateful to have such a great delegation representing southeast Missouri in the Missouri legislature, championing the interests of agriculture.

USRPA is pleased to welcome Colby Branch as the new Marketing Specialist for USDA-FAS. Colby brings a wealth of experience, most recently serving as the Director for Agricultural Affairs for the Office of the US Trade Representative. We look forward to working with Colby in promoting and advocating for U.S. rice around the world.

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