Washington, D.C. Update

Senate Committee Favorably Reports McKalip Nomination

On Wednesday, the Senate Committee on Finance favorably reported the nomination of Doug McKalip to serve as Chief Agricultural Negotiator within the US Trade Representative on a unanimous vote. This nomination will now go to the full Senate for confirmation.

Senator Boozman Sends Letter to Secretary Vilsack

This week, Sen. Boozman (R-AR), a ranking member of the Senate Agriculture Committee, sent a letter to Secretary Vilsack of the Department of Agriculture (USDA) expressing concern over recent issues within the Foreign Agriculture Service Export Sales Reporting and Maintenance System. He emphasized the importance of this system to American producers, especially given high inflation and supply chain challenges. In the letter, he called on USDA to prioritize day-to-day functions over political goals. The letter can be found here.

Mollie recently visited with University of Missouri Extension Specialists Dr. Justin Calhoun and Dr. Justin Chlapecka to discuss the work of the US Rice Producers Association and the Missouri Rice Council.

HARRISBURG, ARKANSAS (Sept. 9, 2022) – From elite Clearfield® varieties redefining yield expectations versus hybrids to how the Provisia® Rice System is the most effective herbicide system for controlling weedy rice, the large gathering of rice farmers and consultants who attended the recent Horizon Ag Arkansas Field Day here heard firsthand how CLL16, new CLL18 and PVL03 enable farmers to make higher yielding, better quality rice.

Horizon Ag CLL16, an Arkansas-bred variety that has been a standout since its commercial release last season, was the center of attention, as attendees viewed field plots and listened to farmer experiences with a variety that has established itself as “the complete package” due to its consistent, high-end performance and agronomics.

Bernie, Missouri, farmer Zack Tanner told field day attendees that CLL16 has become his “go-to” variety on his fields not under contract for seed production. “We’ve had some great yields with CLL16 over the four years we’ve planted it,” said Tanner. “Even when I’m thinking about furrow irrigated rice, it’s a variety I like to plant because of its consistency, blast tolerance, height, vigor and yield.”

Nolan Evans, a Weiner, Arkansas farmer, said he grew CLL16 last season for the first time after confirming its potential with University of Arkansas rice specialist Jarrod Hardke. “He said it was a good variety, so, instead of planting a few acres in it, I planted half my farm in CLL16,” said Evans. “I really like it and probably have a little over a third of my farm in CLL16 this year.”

One of the unique benefits of CLL16 is that it is broadly adapted to perform across the southern rice region. From the Missouri bootheel to the west of Houston, Texas, CLL16 has consistently shown that it can yield with or better than top-performing varietals and even hybrids. 

“This is a variety yielding 200-plus bushels per acre consistently across a wide range of geographies while offering the advantages of a Clearfield variety at a lower seed cost than hybrids,” said Dr. Tim Walker, Horizon Ag general manager. “You’ve heard us say that CLL16 is the complete package. We can always make improvements, and we continually strive to be better, but CLL16 is truly as close to the complete package as we’ve seen in a pure-line variety. It’s got high yield potential, good milling package quality, rice export quality, good disease tolerance, good standability, good early season vigor and herbicide tolerance.”

When it comes to “continually striving to get better,” there is also a lot of excitement about the yield potential of new Horizon Ag variety CLL18, which will have a limited launch in 2023. CLL18, a University of Arkansas bred variety, consistently outyielded CLL16 by about 5% in Arkansas trials, according to Hardke. CLL18 does not offer the level of blast resistance of CLL16, however, and should be planted in areas not prone to blast.

Tanner, who has CLL18 at a very low seeding rate in seed production fields this season, says the variety looks “really good, with prominent heads. It seems like it has excellent vigor. I planted it on May 11 and was at 30%-50% heading on August 8. It’s a showy rice, with a good, dark color and the ability to make a very large panicle.”

Dr. Walker says that in addition to “taking it up a notch in terms of yield potential, CLL18 should fit well with CLL16. “CLL18 is a little earlier maturity, so we can start planting CLL18 early and then follow with CLL16 and stretch out harvest,” he says.

Provisia Rice System and PVL03

In the Provisia Rice System, PVL03 had another strong year, showing it offers a significant improvement over early Provisia lines. In many fields, it rivals the top-performing Clearfield varieties in yield potential while enabling farmers to achieve outstanding control of weedy rice and resistant red rice and grasses. Considering PVL03’s potential, Dr. Walker says that farmers can add the Provisia system to a recommended rotation system that includes Clearfield rice, with the goal of keeping both systems effective for years to come.

Many South Louisiana farmers no longer have that option because, after years of planting Clearfield rice, they face severe resistance issues with outcrosses and hybrid volunteer rice, Dr. Walker says.  Moving forward, he says that practicing good stewardship of both Provisia and Clearfield rice is essential.

“There is another ACCase technology system out there that is not the same as the Provisia Rice System,” says Walker. “That system has a safener in the herbicide because the trait in the variety is not as strong as what we have with the Provisia Rice System. When you safen a herbicide, you safen its efficacy. It’s essential that we get control and prevent escapes to keep this important technology.

To that end, Horizon Ag is participating in the Provisia Working Group, made up of university, retailers and industry leaders like LSU and BASF. With outcrosses already being seen in Provisia rice, the Working Group will develop and provide recommendations for growers to best manage the system in the coming seasons. “Instead of avoiding this issue, our goal is to come together and be part of the solution,” says Dr. Walker. 

More information about Provisia rice and Horizon Ag elite Provisia and Clearfield® varieties is available at www.horizonseed.com.

In This Issue:

  • Market Update: Arkansas Harvest Results Influence U.S. Long Grain Prices
  • USRPA Announces Second Annual Ray Stoesser Memorial Scholarship
  • Nation's Leading Ag Educational Conference is Headed to Baton Rouge, LA
  • Photos from Rice Country: Texas Rice Council & USRPA Host The Rice Company Trader McClane Peters

Harvest continues to produce solid results as we begin the new month. Texas is heading into its final stretch with Louisiana just behind, with perhaps 10% and 15% left to go respectively. This week will be the official “kick-off” of the Arkansas rice harvest where yields are looking to be at least average, hopefully, better. The USDA Crop Progress report is showing Arkansas at 4% harvested as of August 28, and we expect by this time next week to see a significant jump. Mississippi is on the same schedule as Arkansas, with 2% harvested to date, but a busy September is anticipated. California will see its first harvesters in the fields just after the Labor Day holiday and expects to be in full swing by the middle of September.
Cash prices remain strong on the ground, with Texas showing staying power at $17.50-18.00 per cwt. Louisiana is showing much the same as last week at $17.30 per cwt, which is welcome news considering the price disparity in milled prices when compared to competitors. Arkansas will be the one to watch as harvest gets underway to see if being awash in new crops affects futures prices or deliveries in any way. The general sentiment is that it won’t be positive, as futures prices are pressing the upper range of domestic purchases, and there’s resistance against any further price growth. Tracking these changes has been difficult in recent weeks because of a problem with the USDA’s Export Sales reporting system.
The USDA Export Sales reporting system was scheduled to roll out a new interface two weeks ago, but there was a technical glitch instead of the big reveal. A communication from the FAS Administrator states the industry can expect to be without Export Sales reports until at least September 15. This is an extremely important tool to help track S&D fundamentals and compare against previous years, as well as aid in price discovery for the coming year. However, not having access to the reports may save us the dismal news of poor sales since the start of the marketing year. Outside of the boost from the second tranche of rice procured by Iraq, the export business has been light.
To that note, U.S. Long Grain 5% is quoted at $710 pmt. Compare that to prices of $580 in Brazil, $540 in Uruguay, and $500 in Argentina. The industry remains extremely fortunate for its steady domestic business, and in this case, another crop that was down 15% from historical norms at 1.755 million acres of long grain is expected to actually be harvested this year. The high cost of inputs has ravaged the economics of rice production this year for farmers, just as inflation has ravaged the checkbooks of consumers.
Asia is holding steady as well, and the lack of volatility is a nice reprieve in the midst of so much global chaos. Thai 5% is steady around $425 pmt, Viet rice steady at $395 pmt, and Indian rice at $355 pmt. There was initial speculation that prices in Thailand could cool as they finish harvest, but the strong demand from Iraq for milled rice and demand from China for broken (for animal feed) has helped prop up prices even with flush supplies.
The futures market has been surprisingly strong, but showed a drop in average daily volume of 42%, down to 1,149. Open interest was fairly steady, registering a 2% bump up to 9,043.

On Thursday, the US Rice Producers Association (USRPA) opened the application process for the second annual Ray Stoesser Memorial Scholarship, named in honor of former USRPA board member Ray Stoesser. Stoesser’s family, in partnership with USRPA, created the scholarship program to celebrate the late farmer’s legacy and support the agriculture leaders of tomorrow.

An active US Rice Producers Association board member and a third-generation farmer of more than 50 years, Stoesser was passionate about three things: his faith, his family, and agriculture. While he loved nearly every aspect of his decades-long career as a rice producer, he was particularly passionate about expanding opportunities in agriculture for the next generation.

In addition to receiving a $5000 scholarship to support their academic pursuits, the selected recipient will serve as a student ambassador for USRPA with an expectation of participating in at least two activities during the calendar year, including Field Days, legislative activities, conferences, and more.

“USRPA is thrilled to partner with the Stoesser family to create this opportunity for the agriculture leaders of tomorrow,” Marcela Garcia, President, and CEO of USRPA, said. “These students are our industry’s future and we’re proud to support them.”

Current high school seniors, undergraduate, and graduate students are eligible to apply. Applicants should have the intention of pursuing a career in an agriculture-related field. The application is now available online at usriceproducers.com/scholarship. Applications are due Thursday, December 1.

The 26th Annual National Conservation Systems Cotton & Rice Conference, the Southern Corn & Soybean Conference, the Southern Precision Ag Conference, and the Delta States Irrigation Conference are headed to Baton Rouge, LA.

Sponsored by Cotton Incorporated, US Rice Producers Association, and the production of MidAmerica Farm Publications, the event is scheduled for January 31 - February 1, 2023, at the Crowne Plaza in Baton Rouge, LA.

Corporate Co-Sponsors are: Bayer, Cargill Cotton, Horizon Ag LLC, Koch Agronomic

Services, Mississippi Water Resources Research Institute, Missouri Rice Council, Pinion (Formerly KCoe Isom LLP), RiceTec, Inc., Syngenta Crop Protection, and UPL.

Producers mark your calendar for January 31 - February 1, 2023, for what will be the most important conference to attend in 2023 if you want to increase your yields and cut your costs.

“This conference has the reputation as being the number one place where all producers can learn the latest production methods and techniques being utilized by the leading ag producers, researchers, and the ag industry in the United States,” said John LaRose, Jr. President, Publisher, MidAmerica Farm Publications.

The conference is fast becoming the leading source for Certified Crop Consultants to earn Continuing Education Credits (CEUʼs). The 2022 conference was approved for over 60 hours of CEUʼs by the Certified Crop Advisors Association. It is expected that similar CEUʼs will be offered at the 2023 conference.

Academic Partners are: University of Arkansas, Mississippi State University, University of Missouri, University of Tennessee, LSU AgCenter, Auburn University, and Texas A&M. Technical Partners are USDA-ARS centers in Oxford, MS, Stoneville, MS, and Auburn, AL.

Find registration and full details as they become finalized by visiting www.nctd.net.

More reports are coming in of an average to above average crop, which is great news for mills looking for head rice, and producers looking for yields. The domestic business remains steady, and the boost from Iraq is just what the mills need to keep busy through the balance of the calendar year. Prices on the ground for spot prices have remained consistent, which provides a nice backdrop for producers moving through harvest in Louisiana and Texas. Arkansas and California are looking to get in the field the first week of September, and many in Mississippi are ready to start, but untimely rains are getting in the way.
Texas is getting close to being finished, with less than 25% predicted to still be in the field, while the USDA is reporting only 66% harvested this week. Yields for hybrids have been reported as strong, but some of the conventional varieties were hit by the weather which has made the harvest season difficult. Prices have held at the $17.50/$18 range for hybrids and conventional respectively. Louisiana is also receiving rains, with prices reflecting a $17.30 price this week. Overall though, harvest is progressing smoothly and yields have been strong, with the USDA showing 60% harvested, though it’s likely at least 10% beyond that at this point. Arkansas is of course behind Texas and Louisiana, with harvest expected to start in earnest the first week of September. Producers are optimistic about their crop and have confidence it will at least be average. The USDA shows the crop is 89% headed, with 24% showing fair, 53% good, and 19% excellent.
In Asia, prices held steady this week in Thailand, registering at $425 pmt, and the market looking steady at these prices with plenty of supply heading into Q4. Vietnam had a significant drop, falling from $420 last week to about $405 this week on account of a brief respite in an incredibly busy schedule. The long-term demand is there, but it’s almost as if the loadings are taking a quick breather. India hasn’t slowed down and continues to ship rice at breakneck speeds at $355 pmt. As discussed before, these low prices from India have kept a lid on all rice prices in the Eastern hemisphere.
The futures market has performed quite well this week, showing strong pricing and activity. The only concern here, however, is that the futures prices support only domestic pricing. There isn’t sufficient export activity at these prices, especially when considering the intrusion from cheaper origins in Latin countries that are chipping away at the historical core customer base of US long grain customers. The average daily volume was up to 2,005 this week, an increase of 61%. Open interest was 8,885, an increase of 1%.

On Tuesday, the Missouri Rice Research & Merchandising Council hosted its first in-person Field Day since the start of the pandemic. Approximately 150 people gathered at the Missouri Rice Research Farm near Glennonville, MO for morning demonstrations, followed by a luncheon with guest speakers Jason Bean, Missouri state senator for the 25th Senatorial District, and Davin Althoff, Director of Marketing & Commodities for Missouri Farm Bureau. Field speakers and topics included:

  • Water, Irrigation, & Rice - Dr. Michael Aide, Professor, Department of Agriculture, Southeast Missouri State University
  • Effect of Row Spacing on Furrow-Irrigated Rice - Dr. Justin Calhoun, Soil and Cropping Systems Extension Specialist, University of Missouri Extension
  • Cultivar Selection, Planting Date, & Other Agronomic Decisions - Dr. Justin Chlapecka, State Rice Extension Specialist, University of Missouri Extension
  • The importance of insecticide seed treatments, and the future of rice stink bug control - Dr. Chase Floyd, Crop Protection Specialist with University of Missouri Extension, and Dr. Nick Bateman, Entomologist, University of Arkansas System Division of Agriculture
  • Potential for Brake (Fluridone) in Furrow-Irrigated Rice - Jim Heiser, Senior Research Associate - Weed Science, University of Missouri Extension

The Missouri Rice Council thanks all of the attendees and event sponsors for their support of Field Day. 

As part of the USDA's Cochran Fellowship Program, a group of six Guatemalans and Hondurans are currently participating in the U.S. Rice Quality, Marketing, and Pricing training program. The two-week program includes stops in Louisiana, Arkansas, Tennessee, and the D.C. area, and will help importers learn how to market U.S. rice products and showcase the variety and quality of U.S. rice, with the goal of increasing exports of U.S. rice to Guatemala and Honduras.

The group stopped in Lacassine, Louisiana for a tour of the South Louisiana Rail Facility on Tuesday. Mark Pousson, general manager of the SLRF and USRPA board member, hosted the tour, noting, "It was a great opportunity for staff and representatives to learn about our facilities firsthand and understand our industry.”

The fellows include Roberto Wong, Executive Director of ARROZGUA and long-time partner of US Rice Producers Association. Roberto noted that it was good for the group to be able to meet and learn from Mark directly about the success of the Louisiana rice industry.

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