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Up-to-the-Minute News on Issues and Activities
Wednesday, June 24, 2015
House Ag Committee Pushes Back on Administration Efforts to Gut Food Aid Programs
Wants answers 

WASHINGTON, DC -- The House Committee on Agriculture held a hearing today with Phil Karsting, Administrator of the Foreign Agricultural Service (FAS) and Thomas Staal, Acting Assistant Administrator, Bureau for Democracy, Conflict and Humanitarian Assistance, USAID to review international food aid programs in light of controversial efforts to reform the programs by the Obama Administration and some Members of Congress.

 

USA Rice has been working in conjunction with a coalition of leading U.S. agricultural commodity groups to oppose the Food for Peace Reform Act and the Administration's proposal that will result in in-kind food aid programs being replaced with cash vouchers and the local and regional purchase (LRP) of food.

 

In-kind food aid, or the donation of commodities to countries facing food insecurity, hunger, malnutrition, and civil conflict, has been a critical pillar of U.S. foreign policy and a symbol of the commitment and generosity of U.S. farmers for more than sixty years.

 

Based on testimony presented, it was clear that in-kind food aid has saved countless lives, fed millions of school children, and helped several nations transition during times of crisis and disaster. 

 

U.S. food assistance programs are constantly seeking to achieve greater efficiencies and impact and have recently introduced several new micronutrient fortified products, including fortified rice, to help greater numbers of women and children achieve health and become productive citizens. 

 

And while there may be situations where other forms of food assistance can be helpful, it also became clear based on questions from Committee Members during the hearing, that there remain several unanswered questions regarding the transparency, effectiveness, and implementation of both cash voucher and local and regional purchase programs. 

 

"I represent probably the largest row crop district in the nation ... we grow corn, soybeans, and a lot of rice ... Can you provide an explanation of how you will police the use of cash vouchers for LRP and make sure that money is not being diverted?" asked Louisiana Congressman Ralph Abraham during the hearing.

 

"If the goal of food assistance is helping nations achieve food security and transition during times of crisis, it remains unclear to us whether any alternate approaches can reach the same number of beneficiaries and impact as in-kind food aid," said Betsy Ward, president & CEO of USA Rice.  "Food aid remains an important pillar of USA Rice's programming and keeping in-kind food aid as part of U.S. government assistance programs will continue to be a top line policy initiative for our work this year."

 

Ward pointed out that food aid is also a significant component of U.S. foreign policy and that switching from in-kind food programs could result in a loss of control on the ground.

 

"We all want aid going to where it's needed and where it should be going," she said.  "It's too easy to divert cash for other non-aid uses."

 

Contact:  Rebecca Bratter (202) 492-0522

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 will become effective today at 7:00 a.m., Eastern Time (ET). Rough rice prices decreased $0.22 per cwt for long grain and $0.23 per cwt for medium/short grain.

 
World Price
MLG/LDP Rate
 
Milled Value ($/cwt)
Rough ($/cwt)
Rough ($/cwt)
Long Grain
14.59
9.45  
0.00
Medium/Short Grain
14.21
9.57  
0.00
Brokens
  8.80 
----
----

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 July 1, 2015.    
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for June 24

Month
Price
Net Change
July 2015$10.125
 + $0.290
September 2015$10.400
+ $0.315
November 2015$10.675
+ $0.315
January 2016$10.935
+ $0.310
March 2016$11.140
+ $0.310
May 2016
$11.140
+ $0.310
July 2016
$11.140
+ $0.310

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Texas Crop, Weather: Rice Situation Varies Widely; Much Never Got Planted  

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The Mississippi River: Mending the Mighty from North to the Gulf USDA Blog

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UCCE Rice Production Workshop, July 24, Yuba City Western Farm Press

A $100 prepaid enrollment is required, and is limited to 75 people. Enroll by July 21. Seats will be filled on a first-come basis.

 

 

Tariffs and Trade

U.S. Trade Negotiator Poised to Close on Pacific Trade Pact Reuters

Major outstanding issues for Vetter include the final touches to an agreement with Japan to accept more U.S. farm exports, and negotiating with Canada over access to its protected dairy market, a touchy issue ahead of a general election in October.

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