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Tuesday, June 2, 2015

USA Rice Updates Congress on Rural Economy     

Paul Combs (left) and Dow Brantley (far right) deliver the message on the rural economy. 

WASHINGTON, DC -- This morning the House Committee on Agriculture's Subcommittee on General Farm Commodities and Risk Management held a public hearing on the financial health of farm country. Dow Brantley, chairman of the USA Rice Federation, and Paul T. Combs, a past chairman of the USA Rice Producers' Group, were two of the five witnesses offering testimony.

 

As a farmer and equipment dealer and former Federal Reserve Board member from Kennett, Missouri, Combs was able to offer a unique perspective on the current economic situation: "When farmers take steps to minimize their exposure to risk, resulting in a pullback in investments for their farm, this pullback starts first with inputs, including equipment, grain storage facilities, and fertilizer, and then begins to impact the majority of businesses in rural America."

 

Combs continued, "We've seen this cycle play out over and over and I hope we will not repeat the mistakes of the past by taking for granted how important a dependable safety net is, not just to producers, but to all businesses and families that depend on agriculture."

 

Brantley, a third generation farmer from England, Arkansas, talked about the importance of reducing trade barriers and the unfair competition U.S. producers face due to foreign government intervention in global rice markets.

 

"Rice is the most government-interfered with crop in the world, and the U.S. has difficulty competing with foreign governments who illegally subsidize their crops and employ unfair trading practices," said Brantley. "Unfortunately, these bad actors are the very folks that set the world price. Without the farm bill, U.S. rice farmers would be in more trouble economically than they are currently. It is critical that the U.S. government continues to go after the bad actors that put our nation's rice producers at an unfair disadvantage."

 

In closing remarks, all of the panelists appearing before the Subcommittee agreed that the level of financial stress in rural America will increase, and they recognized and thanked the Subcommittee members for their support of the 2014 Farm Bill which will provide growers modest support in these tough times.

 

Contact:  Peter Bachmann (703) 236-1475

US Rice Industry Weighs In on Impact of Trade with Cuba    

Riceland Foods'
 Terry Harris (center)
 

WASHINGTON, DC -- Today the U.S. International Trade Commission (USITC) held a public hearing for their section 332 study entitled "Overview of Cuban Imports of Goods and Services and Effects of U.S. Restrictions." Terry Harris of Riceland Foods represented USA Rice on the first panel.

 

Following prepared testimony, Commissioners questioned panelists, including Harris, representatives from the U.S. Grains Council, the Dairy Farmers of America, and the chairwoman of the U.S. Agriculture Coalition for Cuba (USACC), about working with Alimport, the sole agency responsible for imports into Cuba. The Commissioners were interested in panelists' knowledge of financial transactions between Cuba and its current trading partners, and also how relationships between Cuba and its trading partners may be affected by imports from the United States.

 

The USITC also asked about the impact of trade with Cuba on individual states.

 

"Rice from Arkansas and Louisiana could account for approximately three quarters of sales to Cuba in the years immediately following the establishment of normal commercial relations with Cuba," said Harris. "This could be new demand of up to 100,000 metric tons for just these two states, with an estimated value of $46 million at today's prices. We would expect these states to be the dominant suppliers to Cuba for the foreseeable future, but all producing states in the Mid-South will benefit."

 

The USITC investigation came at the request of the Senate Committee on Finance in response to the Obama Administration's recent shift on relations with Cuba. 

 

"We expect the report will support the overwhelming majority of U.S. agriculture, including USA Rice, seeking a return to normal commercial relations with Cuba," said USA Rice COO Bob Cummings.

 

The complete section 332 report is scheduled for publication on October 15.

 

Contact:  Kristen Dayton (703) 236-1464

CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for June 2

Month
Price
Net Change
July 2015$9.775
+ $0.125
September 2015$10.050
+ $0.125
November 2015$10.325
+ $0.125
January 2016$10.580
+ $0.125
March 2016$10.760
+ $0.125
May 2016
$10.760
+ $0.125
July 2016
$10.760
+ $0.125

In the News 

Around Washington

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The EPA sent a statement to agricultural journalists this week delineating 11 points that the EPA says the Clean Water Act Rule does not do.

 

Webinar to Assist Potential Applicants for Conservation Funding USDA

USDA's Natural Resources Conservation Service (NRCS) will host the webinar, open to both conservation partners and the general public, on Thursday, June 4, 2015 from 2 p.m. to 3:30 p.m. EST.

 

 

Around the Country

Farmers Continue to See Issues with Wet Spring WMC NBC News

Farmers across Region 8 in Arkansas have had a difficult spring as some areas of the region have seen well over the average rainfall for this time of year.

 

 

Science and Technology

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