This week, Bianka Rodriguez, USRPA Marketing & Western Hemisphere Promotions Director, along with Sarah Moran and Asiha Grigsby of the USA Rice Federation, attended the Virtual Andean Regional Conference with FAS Officers. The conference consisted of a 30-minute session, moderated by Adam Klein, Agricultural Attaché at Colombia and Venezuela. Casey Bean, Ag Counselor, Bret Tate, FAS Trade policy lead for the Andean Region, and Lady Gomez. The session primarily focused on updating Posts’ analysis of the Colombia and Venezuela markets. US Rice Producers Association is proud to have close working relationships with Post throughout the world.
Washington DC Update - USDA Announces New Pandemic Assistance for Producers
This week, March 24th, Agriculture Secretary Tom Vilsack announced that USDA is establishing new programs and efforts to bring financial assistance to farmers, ranchers and producers who felt the impact of COVID-19 market disruptions. The new initiative—USDA Pandemic Assistance for Producers—will reach a broader set of producers than in previous COVID-19 aid programs. USDA is dedicating at least $6 billion toward the new programs. The Department will also develop rules for new programs that will put a greater emphasis on outreach to small and socially disadvantaged producers, specialty crop and organic producers, timber harvesters, as well as provide support for the food supply chain and producers of renewable fuel, among others. Existing programs like the Coronavirus Food Assistance Program (CFAP) will fall within the new initiative and, where statutory authority allows, will be refined to better address the needs of producers.
USDA will reopen sign-up for CFAP 2 for at least 60 days beginning on April 5, 2021. The USDA Farm Service Agency (FSA) has committed at least $2.5 million to improve outreach for CFAP 2 and will establish partnerships with organizations with strong connections to socially disadvantaged communities to ensure they are informed and aware of the application process.
The payments announced today under Part 3 will go out under the existing CFAP rules; however, future opportunities for USDA Pandemic Assistance will be reviewed for verified need and during the rulemaking process, USDA will look to make eligibility more consistent with the Farm Bill. Moving forward, USDA Pandemic Assistance for Producers will utilize existing programs, such as the Local Agricultural Marketing Program, Farming Opportunities Training and Outreach, and Specialty Crop Block Grant Program, and others to enhance educational and market opportunities for agricultural producers.
U.S. Senator John Boozman (R-AR), Ranking Member of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, warned again this week that the mandatory spending cuts that will result from the Democrats’ $1.9T reconciliation package should give pause to the idea of using the same process to further increase deficit spending to address climate change. Boozman expressed concern earlier here. The use of the budget reconciliation process risks triggering billions of dollars in automatic spending reductions under statutory pay-as-you-go (PAYGO) rules. Unless federal law is changed, PAYGO will zero out virtually all farm program spending over the next five years. Although the House has passed legislation to address potential PAYGO cuts, the bill would need to reach the 60-vote threshold in the Senate.
Market Update: Rice Competes with Corn & Soybeans for Acres
Export Demand Expected to Improve Later in 2021
After several weeks of the cash market trading sideways, it looks like slower export demand and domestic use has finally caught up. Rice prices soften in each state, albeit by minimal amounts. Rice acres are looking to be flat as corn and beans steal the show. Early guidance suggests growers will consider corn and bean acres as demand is forecast to be strong moving into the 2021 marketing year.
Export demand for US long grain rice remains suppressed as the market struggles to compete with Asian and even South American origins. The latest USDA export sales report cited total long grain demand to be down over 18% YTD.
Between sluggish demand in rice and robust demand in corn and beans, it’s no surprise that growers intend to supplant rice ground for these other commodities. Early projections are that long grain acres in Arkansas will decline by 210,000, Louisiana down 35,000, and Mississippi is forecast down 21,000. Only Texas is expected to match last year’s planted area. California acres are expected to see a sharp reduction as well, however that is not market driven, it is strictly water related. There is some potential risk for US farmers attempting to chase corn and bean prices as reports are coming in that suggest China plans to increase acreage by over 1.65 million acres in the upcoming marketing year.
With the exception of India, most of the major Asian exporters have seen few market developments over the past couple of weeks. While Vietnam is rumored to be in talks with Iraq regarding a tender, that sale has yet to come to fruition and in the meantime, Viet prices have slipped further to $505-510 per metric ton. Thailand is experiencing some market volatility as the local market reached 10-month highs on supply scarcity. Ultimately, this price action has kept many Thai exporters at bay, paving the road for India to capture additional market share.
The nearby contract closed at $12.805 per cwt in Thursday’s trading session which marks a $0.20 per cwt decline over the past 2-weeks. Volume is also down significantly, recorded at only 496 while open interest was relatively steady at 9481. With little change in pricing for the June ’22 and March ’22 contracts the board seems to be signaling that more acres aren’t needed in the market.
Venezuela: New Destination for Gulf Coast Rice Farmers Facilitated through marketing efforts of the US Rice Producers Association, farmers in SW Louisiana and East Texas are emptying their storage bins of the 2020 crop with the loading this week of the vessel “Nestor I” destined for Venezuela, a new destination for South Louisiana Rail Facility members. This shipment involves some 47 farmers for a total volume of 22-23,000 tons of paddy rice. The buyer, GSI Food in Venezuela was founded 60 years ago as a rice marketing business under the name Alimentos Mary and evolved to become the largest rice miller in the country. In 2016 the company grew into GSI Food and expanded into numerous products while opening operations in the Dominican Republic. Today the company has a wide variety of some 30 products, representing numerous brands in addition to their imports of bulk rice, wheat, and white corn. The USRPA first met Alimentos Mary while participating in a trade servicing trip to Venezuela.
Employment Opportunity
Coordinator for Delta
Producer Relations
Objective: Coordinator for Delta Producer Relations will represent the interests of U.S. rice farmers while working and interacting regularly with state and local government officials, farmers and allied businesses, particularly in the Mississippi delta region, including but not limited to Missouri and Arkansas.
Member Services/Outreach
Strengthen relationships with farmers and area rice industry through outreach efforts
Effectively communicate the mission, objectives, and goals of the USRPA to members and non-members alike
Attend events in representation of rice producers as coordinated with state rice councils/associations and USRPA
Update Missouri and Arkansas state association websites and social media accounts
Research and find opportunities for member outreach and involvement including but not limited to field days and state association meetings
Send timely news updates to USRPA about ongoing efforts and events in Missouri and Arkansas with photographs to be published in the Rice Advocate
Develop strong relations with area media publications for submitting news and articles that reflect on the work of rice farmers’ state organizations
Host foreign and domestic rice buyers in coordination with the USRPA
Participate in domestic & international market development projects as requested by the USRPA
Event Planning
Work
with Missouri and Arkansas board to plan, organize, and market local events
Produce
Agendas, Itineraries, Reports, Professional correspondence, Press Releases and
PowerPoint presentations regarding said events
Work
with local rice affiliated businesses to build and maintain sponsor
relationships
Administration
Assist with travel, documentation, expense reports and itineraries for Missouri and Arkansas board representatives
Record and maintain minutes for Missouri and Arkansas state association board meetings
Maintain a detailed record of expenses and follow company policy and procedures to submit reports and expenses in a timely manner
*MUST BE SELF MOTIVATED
Send Cover Letter & Resume to: marcela@usriceproducers.com
Rice Industry Triparty Meeting Supports Establishment of CAFTA-DR Agriculture Review Commission
On Friday May 3, Dwight Roberts, CEO and President of US Rice Producers Association and Alice Gomez of Cornerstone Government Affairs met with Central American and Dominican Republic rice producers and processors represented by FECARROZ along with USA Rice Federation to discuss the proposal to modify terms of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) affecting trade in rice.
The parties met specifically to discuss Article 3.18 of CAFTA-DR, which provides that CAFTA-DR countries shall establish an Agriculture Review Commission this year to review the implementation and operation of the Agreement as it relates to trade in agricultural goods. Among its responsibilities, the Agriculture Review Commission shall evaluate the effects of trade liberalization under CAFTA-DR and developments in world agricultural markets. As part of the meeting, USRPA, FECARROZ, and USARF agreed to issue a joint statement supporting the establishment of the Agriculture Review Commission. Moreover, USRPA and USARF agreed to jointly petition the U.S. Government to take the necessary steps to establish the CAFTA-DR Agriculture Review Commission.
“USRPA views the Agriculture Review Commission process as an opportunity to ensure that U.S. rice farmers will continue to enjoy the strong partnership we currently experience with our Central American business partners,” Roberts commented. “We take the proposal to modify CAFTA-DR duty free trade in rice with all seriousness and will work collaboratively with the Dominican Republic-Central American rice industry to find a solution that maintains a win-win for both sides.”
USRPA plans to meet with members of FECARROZ next at RMTC in New Orleans on June 5.
"CAFTA-DR” meeting in Miami last week between the Central American Rice Federation (FECARROZ), US Rice Producers Association and USA Rice produced positive discussions. The USRPA and FECARROZ have maintained a strong, unique relationship since both organizations were first formed.
Enrique Lacs from the Guatemala Rice Council and a member of FECARROZ makes a valid point during a discussion of the importance of the Central American market for the U.S. rice industry.
Lawmakers Take Positions on USMCA as White House Calls Passage a Top Priority
The Trump Administration issued its annual trade policy report to Congress on March 1, including approval of USMCA, the revised North American trade pact, as a key goal for 2019. In its report, the Administration refers to USMCA as a new regime and the most advanced trade agreement ever negotiated by the U.S.
Congress has yet to see the draft text of the USMCA implementing bill, and lawmakers are taking positions on certain aspects of the trade agreement that would govern North American commerce. Some Democrats have expressed concerns with the enforceability of the agreement’s labor and environmental provisions. Lawmakers want confidence that the Administration will effectively enforce the agreement, including Mexico’s commitments to enact new labor laws. Another concern is whether USMCA would lock in higher drug prices.
The timeline for congressional consideration of USMCA remains unclear. An economic analysis of the agreement’s impacts on industry sectors is forthcoming from the U.S. International Trade Commission, the results of which could influence lawmakers on their decision to support or oppose the agreement. Given the approaching 2020 presidential campaign, others would like to see a successful vote on the deal before summer to deliver another campaign promise achievement for President Trump.
U.S. tariffs on steel and aluminum and the President’s threat to withdraw from NAFTA loom over the USMCA ratification process. The U.S. temporarily delayed tariffs on Canadian and Mexican imports during USMCA negotiations but later imposed the tariffs to pressure the countries to sign a deal. Now that USMCA has been finalized, calls to remove the tariffs on steel and aluminum have heightened, especially as Canada and Mexico have retaliated in kind by placing tariffs on numerous U.S. products including pork, cheese, and potatoes. Shortly after signing USMCA, President Trump announced that he would withdraw from NAFTA very soon. Many lawmakers disagree with this negotiating tactic and question the President’s authority to withdraw from NAFTA without approval from Congress.
USRPA will continue to engage on behalf of U.S. rice farmers as congressional approval of USMCA advances.
USRPA Urges Timely Farm Bill Implementation
This week, USRPA joined 21 other farmer organizations on a letter to U.S. Secretary of Agriculture Sonny Perdue. The letter supports timely implementation of the farm bill as well as a request to update several farmer decision tools.
The letter requests that USDA provide the financial resources needed to modernize and update the web-based decision tools and conduct training and outreach initiatives in light of the recent changes to Agriculture Risk Coverage and Price Loss Coverage. The 2018 farm bill provides U.S. farmers with necessary flexibility in their risk management tools by allowing producers of covered commodities to choose between ARC and PLC on a commodity-by-commodity and farm-by-farm basis. With this flexibility, farmers need risk management and decision aids, as well as training and outreach, to help make these coverage decisions.
The letter closes respectfully encouraging USDA to quickly allocate funding to support the tools and education efforts farmers need to be successful. To read the full letter, click here.
FSA Provides Limited Services While Shutdown Continues
As the partial government shutdown continues without an end in sight, U.S. Agriculture Secretary Sonny Perdue announced that many of the Farm Service Agency (FSA) offices will temporarily reopen on Thursday, January 17, Friday, January 18, and Tuesday, January 22 to perform certain limited services for farmers and ranchers.
FSA offices will be temporarily open to help producers with existing farm loans, 1099 tax documents, continuing expiring financial statements, and processing payments.
“Until Congress sends President Trump an appropriations bill in the form that he will sign, we are doing our best to minimize the impact of the partial federal funding lapse on America’s agricultural producers,” Perdue said. “We are bringing back part of our FSA team to help producers with existing farm loans. Meanwhile, we continue to examine our legal authorities to ensure we are providing services to our customers to the greatest extent possible during the shutdown.”
In addition, Secretary Perdue has extended the deadline for producers to apply for trade assistance under the Market Facilitation Program (MFP) for a period of time equal to the number of business days FSA offices have been closed, once the shutdown ends.
The list of FSA Service Centers open for farm loan activities on January 17, 18 and 22 can be found here.
CAFTA-DR Focus of Meeting in Costa Rica
Since December of 2017, the US Rice Producers Association (USRPA) has conducted a series of meetings with the Central American Rice Federation (FECARROZ) in an effort to analyze the effects of full implementation of the Central American Free Trade Agreement-Dominica Republic to the rice industries of both the U.S. and Central America. Last month at the USA Rice Outlook Conference this process included a meeting between FECARROZ and USA Rice including representation of the USRPA.
This week in San Jose, Costa Rica all three groups met to continue discussions and a proposal submitted by FECARROZ last month. Dwight Roberts, President & CEO of the USRPA was very clear in expressing what the second largest market for U.S. long grain rice means to U.S. farmers while stating, “as we understand the proposal from our customers in Central America, the USRPA supports the efforts of FECARROZ to help maintain this vital market”. Roberts added, “we realize there are some hurdles that need to be resolved and ironed out.”
The USRPA also announced their intention to have a third-party, independent U.S. contractor, conduct an economic impact study that will assist in the evaluation process. USA Rice agreed to this USRPA initiative. The leadership of FECARROZ was positive about the results of the meeting and are looking ahead to the next step as Mario Solorzano, President of FECARROZ from Guatemala stated, “we want to go forward with the next step and preparations for a meeting in late February or early March assuming we have done our homework in the meantime.”
The USRPA also met with Indarroz leadership and will be hosting this Costa Rican rice milling group at the National Conservation Systems Cotton & Rice Conference in Baton Rouge, Louisiana, January 31-February 1st.
Texas Rice Council Meets in Katy
Texas Rice Council held their regular October planning meeting in Houston this week with Tommy Turner of El Campo presiding as President of the organization. Rice farmers from the various counties of the Texas rice region participated and commented on their harvest results and conditions. Of particular concern to everyone was the lack of market demand for rice and the lack of storage available with the second crop harvest approaching. A lengthy discussion followed related to an on-going Texas rice industry sustainability project effort. Hopefully, the results of this project will be available for January 16, 2019, Texas Rice Council/Western Rice Belt Conference that will take place in El Campo.
Several board members commented on their recent trip to Guatemala, an important rice market for the U.S. Tommy Turner, Galen Franz (Victoria), Scott Savage (Bay City), Casey Smith (Hitchcock) and Trey Barker (Katy) traveled to Guatemala to observe rice promotional efforts conducted through a joint agreement of the USRPA and the Guatemala Rice Council (ArrozGua). The group also visited the farm of Alvaro Padilla and the ALCSA rice mill in addition to meetings with other leaders of the Guatemala rice industry. The Texas farmers also visited Todd Drennan and Sean Cox of the USDA’s Foreign Agricultural Service in the US Embassy. Dr. Thomas Wynn and Dennis DeLaughter gave a World/US/Texas marketing report that as usual, generated considerable discussion among the farmers on the board. The group reviewed by-laws, the board election process and a financial report was given among other administrative issues.
