USRPA Exhibits at Food Hotel Asia in Singapore

Grace Wang, Chief Financial Officer of USRPA, visiting USDA ATO Director Garrett McDonaldand staff in Hong Kong.
The US Rice Producers Association (USRPA) continued its outreach efforts in Asia with visits to Vietnam and Hong Kong, engaging with key trade stakeholders and representatives from USDA/FAS. The mission aimed to strengthen relationships with local markets and promote the value of U.S. rice. “These in-person meetings are essential for understanding the unique needs of each market and fostering long-term partnerships,” said Grace Wang, Chief Financial Officer of USRPA. The insights and feedback gathered during these visits will play a critical role in shaping the association’s future marketing strategies. Current market dynamics appear favorable, offering promising opportunities for U.S. rice to expand its market share in the region.
USRPA visiting USDA Senior Agriculture Attache Andrew Anderson and staff in Ho Chi Minh City.

Washington, D.C. Update

President Trump Announces Global Reciprocal Tariffs
On April 2, during a ‘Make America Wealthy Again’ press conference in the Rose Garden of the White House, President Donald Trump signed an Executive Order (“EO”) implementing widespread reciprocal tariffs around the world. Using the International Emergency Economic Powers Act of 1977 (IEEPA), President Trump declared a national economic emergency over U.S. trade deficits, giving him the legal authority to regulate imports. Separate from the EO on reciprocal tariffs, President Trump also announced that the administration would implement a 25% tariff on all foreign-made automobiles.

Taking effect beginning April 5, 2025, at 12:01 a.m. EDT, the U.S. will impose a 10% baseline tariff on imports from all countries. Additionally, President Trump has imposed individualized reciprocal tariffs at higher rates on approximately 60 countries with which the U.S. has the largest trade deficits. Pursuant to White House guidance, it is assumed that the difference between the individualized rate and the standard 10% rate will separately go into effect on April 9, 2025, at 12:01 a.m. EDT. Mexico and Canada were intentionally not included in the announcement, where the existing fentanyl/immigration IEEPA orders that were signed by the President on February 1, February 3, and March 2, respectively, will remain in effect.

The EO also excludes goods that will not be subject to the Reciprocal Tariff EO. Specifically, these items include: (1) articles subject to 50 U.S.C. 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the U.S. Please find the Annex II which includes the full list of goods not subject to the EO here.

At this time, the Administration has expressed that these tariffs will remain in place until such a time that President Trump deems the threat posed by the current trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated. It is anticipated that countries subject to President Trump’s recent announcement will respond in the coming days and weeks with responsive actions towards the U.S., including, but not limited to, reducing their current duty rates or levying additional tariffs.

USDA Secretary Rollins Announces International Travel Agenda to Open Market Access
Last Friday, U.S. Department of Agriculture (USDA) Secretary Brooke Rollins announced her plans to visit six international markets within the year to help expand market access for American agricultural exports. Rollins is slated to visit Vietnam, Japan, India, Peru, Brazil, and the United Kingdom. During her announcement, she emphasized the USDA’s intent to expand global agricultural markets, ensuring the creation of fair-trade agreements while also strengthening existing markets. Other upcoming USDA Trade Missions sponsored by the Foreign Agricultural Service are set to include Hong Kong, the Dominican Republic, Taiwan, Côte d’Ivoire, and Mexico. USRPA plans to have a presence at most of these Trade Missions. If you're interested in learning more, please contact us.

USRPA Represented in Washington
USRPA representatives Vernie Hubert and Fred Clark met with House Ways and Means Committee Chair Jason Smith (R-MO) at an event hosted at Cornerstone Government Affairs on April 2 — also recognized as "Liberation Day." The gathering provided a valuable opportunity to engage in discussions on critical tax and trade issues. Chairman Smith represents Missouri's Eighth Congressional District, which covers all of Missouri rice country.

MO Congressman Jason Smith Makes Farm Tour Stop in Rice Country

Three generations of Wheeler Farms with Congressman Jason Smith (MO-8)
Congressman Jason Smith hosted his annual farm tour in the Eighth Congressional District of Missouri this week. The tour included a stop at Wheeler Farms, a fourth-generation farm near Grayridge, Missouri. Missouri Rice Council and USRPA Board Member Justin Wheeler hosted Congressman Smith for a drive around the farm.   The day concluded with a luncheon with Congressman Smith hosted by Missouri Soybeans at Strawberry’s BBQ in Holcomb, MO. USRPA’s Mollie Buckler and Board Member Alex Clark represented USRPA at the event, which included discussions on the future of the Farm Bill.

Washington, D.C. Update

Senator Boozman Releases Farm Bill Framework

On Tuesday, Senate Agriculture Committee Ranking Member John Boozman (R-AR) released a framework of his vision for the next farm bill. In an accompanying statement, he emphasized the need “to put more farm in the farm bill.” His framework includes an average increase of 15% in reference prices across all commodities as well as a doubling of the funding for agricultural trade promotion programs. More information on the proposal can be found here. A statement of support from USRPA’s chairman Neal Stoesser can be found here.

House Agriculture Appropriations Subcommittee Marks up Funding Bill

On Tuesday, the House Agriculture Appropriations Subcommittee marked up the fiscal year 2025 funding bill for the Department of Agriculture and the Food and Drug Administration. The markup was completed in under a half hour, with Subcommittee Ranking Member Sanford Bishop (D-GA) and Committee Ranking Member Rosa DeLauro (D-CT) notably raising concerns about how the bill would impact nutrition programs. The subcommittee approved the bill on a party-line vote. It now moves to the full Appropriations Committee, where it is tentatively scheduled to be marked up on July 10. Ahead of the markup, Subcommittee Chairman Andy Harris (R-MD) released the text for the bill; text for the bill can be found here. A recording of the markup can be found here.

Volume 20, Issue 9

In This Issue:

Read the Newsletter

Volume 20, Issue 09

In This Issue:

Read the Newsletter

Market Update - U.S. Rice Farmers Need Improved Export Market

The market has remained consistent since Thanksgiving. This is typical for this time of year though, as historically there have not been large chunks of business conducted during the holiday season. This year, however, it is a bit more noticeable because there haven’t been any large chunks of business since the Iraq tenders have completed. The stark lack of offshore sales is crossing into the worrisome category, and even the strong domestic market will likely not be able to continue keeping prices elevated to the same degree moving forward.
The price of U.S. long grain compared to the competition continues to maintain a spread not seen in recent history. While U.S. long grain 5% has dropped from $740pmt down to $730pmt, it is still nearly $200pmt higher than its Western Hemisphere counterparts. Uruguay at $560pmt, Brazil at $565pmt, and Argentina at $505pmt.
Just after the Thanksgiving break on November 28, a GAIN report on Brazil was published highlighting the competition that the U.S. now faces from this Western Hemisphere juggernaut vying for our core export market in Central America, namely Mexico. First things first, is that Post reduced the forecast for planted rice in Brazil in the coming year to a historical low of 3.9 million acres because crops like soybeans and corn are much more profitable and require less maintenance. This 3.9 million acre is 2.5% lower than last year, and 6% lower than the year before. 
Despite the downturn in U.S. rice exports, the South Louisiana Rail Facility continues to market rice in nearby markets. Their newest development is a barge terminal located at the Port of Lake Charles (pictured) with loading activity underway this week. In just 10 short years, rail, barge, vessel, and now the Agreeta Rice Mill Partnership that will kick off next month has given some 200 rice farmers in SW Louisiana and SE Texas access to markets not previously available.  
As a threat to the U.S. rice industry, the Brazilian rice grower industry organization FEDERARROZ is combatting higher input costs by advocating for a more ambitious commercial agreement with the Mexican government. Right now, Brazil has a quota of seventy-five thousand tons per year of rice that can be exported tariff-free. They are pushing to grow this agreement, further putting pressure on the U.S. long-grain industry.
In light of this, Post has increased the export forecast for Brazil from 700,000 MT up to 900,000 MT, an ominous foreboding for the U.S. Exports to Mexico from Brazil have exceeded 305,000 metric tons as of September this year, exponentially higher than in previous years. The reason is two-fold; the first is the high prices from the U.S., and the second is the tax exemption that Mexico placed on imported rice to discourage food inflation. Mexico now accounts for 60% of Brazil’s paddy exports, a statistic that was unfathomable only a few years ago. For example, in 2021, the U.S. exported 765,000 MT to Mexico, then in 2022 it was 625,000, and down to 373,000 through September of this year; barely more than Brazil. Mexico is still procuring the same amount of rice, the U.S. is just getting much less of the business.
In Asia, things look very similar to pre-Thanksgiving numbers. Thai prices are at $430pmt, Viet prices at $435pmt, and Indian prices are now closer to $395pmt with their tariff. Prices remain firm that this level in the middle and far east, and there is little expectation for significant price shifts outside of some unforeseen weather or geopolitical event.
The weekly USDA Export Sales report net sales of 25,300 MT this week primarily for Japan (13,000 MT), Haiti (7,100 MT), Honduras (3,900 MT), Belgium (300 MT), and Canada (200 MT). Exports of 23,500 MT were primarily to Colombia (11,400 MT), Haiti (7,100 MT), Canada (1,900 MT), Mexico (1,700 MT), and Saudi Arabia (500 MT).

USRPA Participates At The Rice Education Exhibit At The Texas Rice Festival, Winnie, TX

The purpose of the Rice Education Exhibit was to further the influence of the festival's continuing education program. It was a great event to educate youth on all things RICE! Participation in community educational events has allowed USRPA to raise awareness of rice and promote rice consumption and education.

USDA Awards Funds for Fiscal Year 2022 Market Development Programs

WASHINGTON, D.C., Dec. 3, 2021 – The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) has awarded fiscal year 2022 funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for U.S. goods.

The Market Access Program (MAP) focuses on consumer promotion, including brand promotion for small companies and cooperatives, and is used extensively by organizations promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities. The Foreign Market Development (FMD) Program focuses on trade servicing and trade capacity building by helping to create, expand and maintain long-term export markets for U.S. agricultural products.

“The Market Access and Foreign Market Development programs benefit producers throughout the United States, building markets for a wide variety of U.S. farm and food products around the globe,” said FAS Administrator Daniel Whitley. “These programs play a significant role in supporting the U.S. agricultural industry that achieved record exports in 2021 and is projected to do even better in 2022. Increased exports are critical to expand farm incomes, improve the economic health of rural communities, and ensure nutrition security here at home and overseas.”
Under the Market Access Program, FAS will provide $175.6 million for fiscal year 2022 to 67 nonprofit organizations and cooperatives. These organizations use the funds to support U.S. producers with marketing and promotion activities around the globe, including market research, technical assistance, and support for participation in trade fairs and exhibits. The average MAP participant provides more than $3.50 in contributions for every $1 in federal funding it receives through the program.

Under the Foreign Market Development Program, FAS will allocate $26.8 million for fiscal year 2022 to 21 trade organizations that represent U.S. agricultural producers. The program focuses on generic promotion of U.S. commodities, rather than consumer–oriented promotion of branded products. Preference is given to organizations that represent an entire industry or are nationwide in membership and scope. The organizations, which contribute on average more than $2.50 for every $1 in federal funding they receive through the program, will conduct activities that help maintain or increase demand for U.S. agricultural commodities overseas.

USDA’s international market development programs have had a significant and positive impact on U.S. agricultural exports. An independent study released in 2016 found that MAP and FMD provide $28 in export gains for every $1 spent by government and industry on market development.

Agricultural exports have grown significantly over the past decades, becoming an increasingly important component of the agriculture industry and accounting for 20 percent of U.S. production. From 2000 to 2020, U.S. agricultural exports grew from $56 billion to $150 billion. It is estimated that U.S. agricultural exports supported nearly 1.1 million full-time jobs in 2019.

USDA has published the list of organizations that will receive fiscal year 2022 MAP awards and FMD awards. To learn more about MAP, FMD and other FAS programs, visit www.fas.usda.gov.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy, and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

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Washington DC Update

Reconciliation rolls on!

The House Agriculture Committee has scheduled a mark up to consider a proposal to satisfy the
Agriculture Committee’s reconciliation instructions required by S. Con. Res. 14 on Friday, September 10th at 1:00 pm - view here.  The agriculture portion of the partisan Reconciliation bill is intended to implement President Biden’s Build Back Better $3.5 trillion agenda.  The legislation has been “pre-conferenced” by the House and Senate Agriculture Committees so little change is expected during the markup on Friday. 

The Reconciliation bill proposal is intended to address the following areas:

Statutory language implementing the proposals may be found here.

There is a $35 billion difference in House and Senate Agriculture Committees due to the differences in jurisdiction concerning child nutrition programs which the House Education and Labor Committee will consider Thursday, September 9th. 

Passage of the $3.5 trillion reconciliation proposal is uncertain.  Currently, moderate House Democrats have been expressing their dissatisfaction with the proposal and Senator Joe Manchin D-WV is rumored to support only $1.5 trillion in spending.   Coupled with the end of the month vote on the bipartisan infrastructure package and Democratic policy disagreements, the path forward for the reconciliation proposal is rocky.