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Up-to-the-Minute News on Issues and Activities
Wednesday, March 4, 2015
White House Briefs Ag Groups on Trade
Betsy Ward and Tom Vilsack 

WASHINGTON, DC -- USA Rice President & CEO Betsy Ward attended a trade briefing at the White House yesterday with Agriculture Secretary Tom Vilsack and Chief U.S. Agriculture Ambassador Darci Vetter where they discussed the current status of the Trans-Pacific Partnership (TPP) and Trans-Atlantic Trade and Investment Partnership (T-TIP) negotiations.  Ward and other agricultural commodity groups in attendance were encouraged to press Congress to grant the President Trade Promotion Authority (TPA). 

 

Echoing comments he made to USA Rice members last week during a speech at the USA Rice Government Affairs Conference, Vilsack spoke of the importance of trade agreements for agricultural market access.  Saying that this is the "signature moment for your involvement," he praised the groups for their efforts thus far, but noted that free-trade opponents have done a better job of motivating their membership to make individual contacts in opposition to TPA.  

 

Vetter said that if the Obama Administration is to finish TPP this year, then TPA must pass this spring.  With the administration making an all-out push, Ward noted, "the rice industry has long been a supporter of TPA and trade agreements that have been beneficial to U.S.-grown rice like the Colombia FTA and NAFTA, and we are urging the administration to negotiate similar benefits in the TPP and T-TIP."

 

USA Rice signed a broad agriculture letter in support of TPA on February 5.

 

Ward also urged the Administration to keep ag groups informed when they are promoting TPA around the country so everyone can facilitate grower attendance and participation.  Attendees at the briefing agreed that having an actual bill to support will help motivate grassroots constituents to contact Members of Congress.

 

If TPA is passed, Congress will assess individual trade agreements, like TPP, against TPA provisions and vote up or down on implementing legislation.  TPA provides assurance to foreign countries that agreements reached with U.S. negotiators cannot be amended by Congress and, more importantly, provides clear negotiating direction to the President against which the deals his negotiators bring home will be measured.

 

Contact:  Bob Cummings (703) 236-1473

CCC Announces Prevailing World Market Prices 
WASHINGTON, DC -- The Department of Agriculture's Commodity Credit Corporation today announced the following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, and the resulting marketing loan-gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2014 crop, which became effective today at 7:00 a.m., Eastern Time (ET).  Rough rice prices are decreased $0.08 per cwt for long grain and medium/short grain.

 
World Price
MLG/LDP Rate
 
Milled Value ($/cwt)
Rough ($/cwt)
Rough ($/cwt)
Long-Grain
15.48
10.03
0.00
Medium-/Short-Grain
15.10
10.17
0.00
Brokens
  9.34 
----
----

This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and the corresponding loan rates:

 
U.S. Milling Yields
Whole/Broken
(lbs/cwt)
Loan Rate
($/cwt)
Long-Grain
57.21/12.55
6.64
Medium-/Short-Grain
61.89/8.83
6.51
 
The next program announcement is scheduled for March 11. 
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for March 4

Month
Price
Net Change
March 2015$10.465
+ $0.105
May 2015$10.725
+ $0.100
July 2015$10.975
+ $0.100
September 2015$11.145
+ $0.110
November 2015$11.305
+ $0.060
January 2016
$11.435
+ $0.055
March 2016
$11.435
+ $0.055

In the News 

Around the Country

Dry Winter Weather Worries Rice Farmers Capital Public Radio

California rice farmers are worried that if doesn't rain or snow soon they will have to fallow fields again this year. The rice crop was down nearly 25% in 2014. But, it's not just the drought that's hurting growers. Market competition from states like Louisiana and Arkansas is also increasing. 

 

Farm Bill: Who Takes the Risk and Who Makes Decisions? Southeast Farm Press

There is no doubt, that the 2014 farm bill is complicated. There are multiple long-lasting decisions to make. We can make an educated guess, but it is still a guess on how the next four years will play out.

 

 

Around the World

Traders to Blame for Spike in Rice Prices, Says Official Wall Street Journal

Markups by traders not a supply shortage were the primary cause of a recent spike in rice prices in Indonesia, a government official has said, downplaying the widespread effect of the increase.

 

 

Tariffs and Trade

Agriculture Under Secretary Scuse Leads USDA Trade Mission to Southeast Asia March 9-13 USDA

Leaders from six state agriculture departments and 21 U.S. agribusinesses and organizations will accompany U.S. Department of Agriculture (USDA) Under Secretary Michael Scuse on a trade mission to Southeast Asia from March 9 to March 13 to expand export opportunities for U.S. food and agricultural products in one of the world's fastest-growing markets.

 

Cuba Looks North to U.S. Farmers for Help with Food Crisis Washington Post

A year after assuming power from his brother Fidel in 2006, President Raul Castro launched a series of reforms to loosen near-total state control of agriculture, giving long-term loans of fallow land to private farmers and allowing them to sell surplus crops on the private market.

 

 

Science and Technology

Proof He's the Science Guy: Bill Bye is Changing his Mind About GMOs Washington Post

Over the years, as peer-reviewed scientific studies on GMOs have piled up, scientific organizations ranging from the National Academy of Sciences to the World Health Organization have analyzed them and reached similar conclusions: GMOs on the market today are no riskier for your health than their non-GMO equivalents.

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