USRPA Signs on in Support of Preserving Crop Insurance Funding

This week, USRPA joined other agriculture organizations in advocating against spending cuts for the crop insurance program. In a letter to Secretary of Agriculture Tom Vilsack and Director of the Office of Management and Budget Shalanda Young, they cite the challenges faced by producers as a reason to avoid funding cuts to the program. Agencies are currently working on finalizing their funding requests for fiscal year 2025, which will be compiled to form the President’s Budget Request. The letter can be found here.

House Ways and Means Approves Tax Package

On January 19, the House Ways and Means Committee approved a tax bill which addresses a variety of business tax policies as well as expands the child tax credit. The bipartisan tax proposal was released earlier last week by the Ways and Means Chairman Jason Smith (R-MO) and the Chairman of the Senate Finance Committee Ron Wyden (D-OR). Of note to agriculture, the bill includes provisions to raise limits on the Section 179 expensing provision as well as restore bonus depreciation. These provisions are both often used by those in the agriculture sector to write off expenses related to farm equipment and machinery. It does not address any tax policies which expire in 2025, including the Section 199A deduction on pass through income for agricultural cooperatives. The bill was approved by the Committee on a bipartisan 40-3 vote; the three no votes were all from Democratic members. The full House may consider the bill as early as next week. It remains to be seen when the Senate may consider the bill.

The weather certainly keeps things interesting. Where we were praying for rain only weeks ago to get the Mississippi levels up, now there is so much in some places it’s slowing down deliveries again. And the arctic blast that froze much of Arkansas in recent weeks put a damper on domestic movement, slowing action a bit further. Nothing earth shattering that would change the market in a drastic way, but enough to notice a slowdown in both cash purchases, barge loadings, and exports. After a banner week of export sales last week, sales dropped nearly 75% this week and exports dropped about 20%. On the ground, we are reporting prices in Texas at $18.75/cwt, Louisiana at $18.36/cwt, and Mississippi, Arkansas, and Missouri at $17-$17.25/cwt. Spring planting is just around the corner and farmers are making variety and acreage decisions along the gulf coast. The obvious goal for exporters is to maximize bookings in both milled and paddy sales over these next few weeks before the South American harvest gets in full swing. The expectations for the South American crop are on the low side of average, but will be the first Western Hemisphere competition in several months. Prices remain firm for U.S. prices at the moment; milled quotes are as high as $750 pmt into Central and South America while paddy prices hover around $440/ton FOB New Orleans. Now it’s just a matter of being able to get it there with the rippling logistical issues from the drought-ridden Panama Canal and the terrorist activity in the MENA region. The Houthi terrorist situation is placing extreme distress on the global complex for rice and all trade. Recall the snarl in the Suez Canal when the now infamous “Ever Given” blocked the trade route for six days in 2021. In this current crisis, virtually all shipping carriers have ceased activity in that region for the time being. These shipping disruptions aren’t limited to the Red Sea and Suez Canal, as global trade lanes are feeling the burden of losing a major trade channel. This has driven up global shipping costs, particularly for containers, along with substantial and unpredictable surcharges causing exporters to pull out of the market. The historic drought in Panama only compounds the problem where surcharges are also being imposed. These obstacles have driven most carriers to file emergency surcharges, which in the MENA region can range from $400 to $2,500 per container ($20 to $125 per ton in 1 MT totes). The bottom line is that the Federal Maritime Commission (FMC) is allowing carriers to change rates at any time and without any notice, basically eliminating the value of any freight quote. Until the FMC revokes or rescinds that policy, export sales to MENA will be extremely risky. In Asia, prices jumped from their already high levels. Thai prices bumped as high as $667 pmt, and Vietnam as high as $650. Strong demand from Indonesia for Thailand, and the Philippines for Vietnam is sustaining the upward pressure.

Have you secured your tickets for the upcoming event? Great! Now it's time to reserve your hotel room. This year, we present you with two fantastic options: Hilton Garden Inn Sugar Land and Marriott Sugar Land. The Hilton Garden Inn will provide a shuttle service for drop-offs and pick-ups at the event until 11 PM, similar to last year. To make a reservation, click on the link below and use the code RICE24 for a preferred rate. The Marriott Sugar Land is located in the heart of the lively Sugar Land Town Square, surrounded by delightful shopping venues and fabulous dining options that are all within walking distance. To make a reservation, click on the link below and book your group rate for Texas Rice Roundup.

*Hotel reservations must be made by January 31st to guarantee a special group rate. Reserve Hilton Garden Inn Reserve Marriott Sugar Land Tickets and Sponsorship

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Ryan Williamson

Kylie Temple

Emily Glaze

Madyson McAshlan

The US Rice Producers Association Ray Stoesser Memorial Scholarship Committee is pleased to announce its 2024 scholarship recipients. Ryan Williamson, a junior at Texas A&M University, will receive a $5,000 scholarship from the Stoesser family to continue his education. Williamson is a student in Texas A&M’s Business Honors program while also working toward a certificate in International Trade and Agriculture. Growing up in the rice farming community of El Campo, Texas, Ryan developed a passion for agriculture from a very young age. This passion eventually led him to become involved in 4-H and FFA, where he most recently completed his year of service as the 2022-2023 National FFA Western Region Vice President. In this position, he traveled to more than 30 states to meet with FFA members and stakeholders, deliver workshops and keynote addresses, and advocate for American agriculture.  In addition to the monetary award, Williamson will serve as a student ambassador for USRPA in 2024. He will be invited to participate in various USRPA activities, including but not limited to Field Days, legislative activities, Texas Rice Council meetings, and conferences. The committee had a pool of exceptional candidates, which allowed them to extend scholarship offers to those who placed second, third, and fourth. Kylie Temple, a high school senior at Hermiston High School in Hermiston, OR will receive a $1500 scholarship. Emily Glaze, a high school senior from El Campo, TX will receive a $1000 scholarship, and Madyson McAshlan, a high school senior from Santa Fe, TX will receive a $500 scholarship. Born and raised in eastern Oregon, Temple is a four-time state winner in a multitude of FFA competitions including food science, prepared public speaking, and job interview, in which she placed top four nationally. She currently serves as the 2023-2024 Oregon FFA State Vice President, advocating for agriculture and leadership. After her year of service, she looks forward to attending university to pursue a degree in agriculture business and communications.  Glaze, a high school senior from El Campo, Texas, will attend Texas Tech University this fall. She is heavily involved in 4-H and FFA, showing black Brangus cattle throughout Texas. She is a fourth-generation rice farmer and has a deep passion for all things ag-related. McAshlan is a senior at Friendswood High School and plans to attend West Texas A&M University to study Agriculture Communications and Media. She is a current Texas FFA Area lll Officer and the Galveston County 4-H Chairman. She has raised over 50 market lambs, and over 100 market rabbits, and started her own Nigerian Dwarf Dairy Goat operation, Twisted Elm Dairy Goats. Applicants of the Ray Stoesser Memorial Scholarship must be high school seniors or current college students who are interested in or are currently pursuing a career in an agriculture-related field. For more information, visit http://usriceproducers.com/scholarship.

On Wednesday, the El Campo Civic Center hosted the 2024 Western Rice Belt Production Conference, attracting close to 300 members from the rice farming community. The morning session included presentations from Horizon Ag, RiceTec, DynaGro, and AgriLife Research on seed varieties. Additional topics covered during the conference comprised insecticides, an LCRA irrigation water update, rice production economics, and sustainable rice production. During lunch, the winners of the rice poster competition were announced. The afternoon session was resumed with a DC update from USA Rice, followed by presentations from the Texas Rice Research Foundation on current initiatives and the Texas Rice Council and US Rice Producers Association on promotion efforts. The agenda also included the utilization of agronomic data. The conference concluded with a USDA Natural Resource Conservation Service conservation program. "This event, with its comprehensive range of topics, is well-attended and serves to equip Texas rice producers with the knowledge and resources to succeed. It also acknowledges the support and contributions of several entities in helping them achieve their goals," Tommy Turner, President of the Texas Rice Council and USRPA Board Member, said. Texas Rice Council President & USRPA Board Member Tommy Turner presents to the group, highlighting recent TRC and USRPA promotional efforts.

Chairwoman Stabenow Proposes New Crop Insurance and Farm Program Reform

On Wednesday, Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) circulated a ‘Dear Colleague’ letter that outlined her proposal to strengthen the current farm safety net in the upcoming farm bill. She highlighted five key principles for modernizing the safety net, including targeting active farmers, providing choices and flexibility, timely assistance, expanding program reach, and addressing emerging risks for farmers.

The Chairwoman pointed to crop insurance as being a crucial tool to utilize and improve upon in the upcoming farm bill, calling for more affordable policy options across all commodities. While she recognized the need to update Title I reference prices, she suggested widespread reform to crop insurance could be a more effective solution to help combat challenges in the farm sector, such as supply chain disruptions and increased input costs, as opposed to the reliance on farm commodity programs during times of difficult market conditions. The letter also reiterated her commitment to a farm bill that fosters bipartisan support without taking funds from the nutrition and conservation titles.

The steady market is a welcome respite from the supply shortage endured over the past two years. Mills are busy, as are paddy exporters, and it could almost be described as “perfect” if it weren’t for a milling yield that continues to put additional strain on the mills. There hasn’t been any expectation or reason to believe, but there’s still a sliver of hope that qualities might improve as we get deeper into the year, but no such luck. With that being said, demand is steady in both the export and domestic markets and cash bids are active. In Texas, prices on the ground are quoted at $18.75/cwt, while Louisiana is at $18.21/cwt. Prices in Mississippi, Arkansas, and Missouri are quoted at $17.25/cwt. Prices in Asia continue to defy gravity on strong demand and no competition from India. It is still too early in the calendar year for buyers to weigh the Indian option against Thailand for Vietnam, so for the time being, they continue to benefit. India has found its way into the news again this week for its complete disregard for its WTO violations. The first citing comes in the form of India’s sustained urea demand. If the government was sincere about modernizing its agricultural systems and reducing subsidies, it would be reflected in reduced urea demand. However, India remained second to only China in its urea usage at nearly 35 million metric tons annually. Over the past four years, India has seen a stunning increase of 60 million agricultural workers. The second and most recent citing is India’s stubborn opposition to even addressing their rice and wheat subsidies until the WTO reaches a firm resolution on food grain stockholding. This is just another stall tactic India is using while its domestic policies increasingly have a distorting effect on the global rice trade. The USDA WASDE report came out just after publishing last week, and the U.S. Rice Outlook this month calls for slightly higher supplies, lighter exports, and higher ending stocks with steady domestic use. The NASS Crop Production 2023 Summary estimated all rice at 218.3 million cwt, down 1.4 million cwt from previous estimates, but up nearly 60 million cwt from last year. All rice imports were raised 2 million cwt to a record 42 million cwt, with the increase coming in long grain fragrant varieties. Changing gears to the global outlook, the USDA calls for reduced supplies, consumption, trade, and ending stocks this month. The drop in supplies is from a weak Chinese harvest, no exports from India’s absence in the export market, and lowered stocks as a result of China. Overall, the update points to what we have been mentioning for weeks, which is that the United States is positioned very well to take advantage of a tight supply in the Western Hemisphere. The harvest in Mercosur began in Paraguay 10-12 days ago and early reports are low yields due to widespread flooding. Heavy rainfall throughout northern Argentina, Uruguay and areas of Rio Grande do Sul, Brazil are causing many to predict mediocre field yields. Weather in February and March will be key. So until then, we anticipate the market to remain firm with paddy and milled export sales continuing to race forward. It should be noted that the Panama Canal condition is detrimental to U.S. exports to Central America. Only Honduras has an Atlantic port. Drought conditions have the canal 30 percent lower than expected and have reduced the number of vessels. Passage is given through an auction process, meaning the highest bid gives you canal access.   The USDA Export Sales report shows net sales of 110,000 MT this week, up noticeably from the previous week and up a whopping 85% from the prior 4-week average. Increases primarily for Mexico (25,800 MT), Venezuela (22,000 MT), Guatemala (16,400 MT), Japan (15,900 MT), and Saudi Arabia (10,200 MT). Exports of 89,000 MT were up 86% from the previous week and 15% from the prior 4-week average. The destinations were primarily Mexico (33,000 MT), Honduras (15,300 MT), Japan (15,300 MT), Saudi Arabia (9,300 MT), and Haiti (9,300 MT). The numbers are astounding when compared to last year—it’s great to have supply to export!

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