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USA Rice Daily
Up-to-the-Minute News on Issues and Activities
USA Rice offices will be closed Friday, July 3, in observance of Independence Day.
USA Rice Daily will resume publication on Monday, July 6, 2015. 
Thursday, July 2, 2015

Field Day Features USA Rice Presentations       

 
Rice farmer Ray Stoesser (l) in talks with USA Rice's Ben Mosely 
EAGLE LAKE, TX -- USA Rice staff Betsy Ward and Ben Mosely addressed Texas farmers at the dinner and program following the Eagle Lake Rice Field Day this week.

 

Ward gave an overview of USA Rice work on behalf of rice farmers and specifically addressed trade issues critical to the rice industry like the TPP negotiations, Iraq, China, and domestic and international promotion initiatives.

 

Mosely outlined USA Rice's work with Congress and the U.S. Department of Agriculture on implementation of the farm bill, and plans to submit a pre-proposal next week for a small reservoir here as part of the Regional Conservation Partnership Program (RCPP).  The project will be executed in cooperation with Ducks Unlimited and the Lower Colorado River Authority, among several other partners, as a way to reduce groundwater usage on rice fields and in managed waterfowl habitat.

 

"Visiting farmers helps us develop our message to Congress and federal agencies," said Ward.  "Rice is a small commodity and our goal is to speak to policymakers and influencers with one voice so that the industry delivers a strong, clear message.  We want to keep fighting above our weight class for farmers in Texas and across the rice states."

 

Ward and Mosely also answered questions on recent changes to farm policy and trade from members of the Texas Rice Producers' Legislative Group and the Texas Rice Producers' Board and heard from both groups about the important issues on the ground.

 

Contact:  Amy Doane (703) 236-1454

 

Dick Ottis, Chairman of USA Rice Merchants' Association (second from right) and Betsy Ward meet with local farmers in Eagle Lake 

 

WOTUS Publication Met with Multiple Lawsuits       

We're serious 
WASHINGTON, DC -- On Monday the Environmental Protection Agency's (EPA) and Army Corp of Engineer's Clean Water Rule:  Definition of "Waters of the United States," commonly called Waters of the U.S. or WOTUS, was published in the Federal Register along with thousands of pages of supporting documentation showing the agencies' intent.  The rule is effective on August 28, 2015. 

 

Lawsuits began to be filed as soon as the document was published with four suits filed by 27 states and one lawsuit filed by a private energy company; one more state-initiated lawsuit is expected.  The primary tenets of the lawsuits are: the rule was finalized while a major structural document, The Connectivity Report, was incomplete; there were procedural violations such as a failure to respond to comments; and, the rule violated the Administrative Procedures Act, the Clean Water Act, and the National Environmental Policy Act.   

 

Texas, Louisiana, and Mississippi filed a joint lawsuit asserting that the EPA's final rule is "an unconstitutional and impermissible expansion of federal power over the states and their citizens and property owners."  There appears to be overlap in the lawsuits which may lead to consolidation in some cases.

 

The rule states that rice fields are excluded from jurisdiction.  A review of the Response to Comments suggests that EPA's intent was more nuanced.  Rice fields that would revert to uplands if no longer farmed are excluded as are rice fields that are prior converted wetlands. However, rice fields that were created in wetlands and retain wetland characteristics could be jurisdictional but normal farming exemptions would still apply.  Rice fields are allowed other uses including crop/crawfish rotation, fallowing, and hunting without becoming jurisdictional waters.

 

Rice irrigation water drainage conveyances are open to interpretation.  Conveyances bringing water into rice fields are likely excluded from jurisdiction while drainage ditches that empty into waters of the U.S. are likely within jurisdiction of the rule.

 

USA Rice will continue to review the supporting documentation, including the Response to Comments, to fully understand the rule's ramifications for farmers.

 

Contact:  Steve Hensley (703) 236-1445

Industry Calls for Normalization of Relations with Cuba Grow Stronger      

Choose the shortest rice route 
WASHINGTON, DC -- The U.S. State Department and the Cuban government recently announced they will re-open embassies in Washington and Havana.  President Barack Obama said that Secretary of State John Kerry would travel to Cuba later this summer to formally open the embassy, following the official re-establishment of diplomatic relations on July 20, and he called on Congress to fully lift the embargo, which has been in place since 1961.  

 

Prior to the President's announcement, a resolution came out of the Louisiana State Senate, authored by Senator Dan Morrish, from Jefferson Davis Parish, urging the U.S. Congress to "restore trade relations between the United States and Cuba in order to open the market to Louisiana rice."

 

Louisiana's rice industry has the potential to benefit greatly from normalizing trade relations with Cuba, and the resolution sent to Congress makes the parameters of that potential clear. USA Rice's involvement with the U.S. Agriculture for Cuba (USACC), and support for normalizing trade relations with the country, were also mentioned in the Louisiana resolution.

 

"USA Rice has been advocating for the end of the embargo," said USA Rice President & CEO Betsy Ward.  "Along with loosened travel restrictions and some new economic ties, the restoration of diplomatic relations and reestablishment of embassies would be a huge steps toward this goal."

 

The United States exported $64 million worth of rice to Cuba as recently as 2004 but the Cubans have not bought any U.S. rice since 2009.

 

Contact:  Kristen Dayton (703) 236-1464

Weekly Rice Sales, Exports Reported        

WASHINGTON, DC -- Net rice sales of 69,200 MT for 2014/2015 were down 47 percent from the previous week, but up 18 percent from the prior four-week average, according to today's Export Sales Highlights report. Increases were reported for Mexico (45,700 MT), South Korea (7,500 MT), Costa Rica (7,400 MT), Jordan (4,000 MT), and Canada (1,900 MT). Net sales of 13,000 MT for 2015/2016 were reported for South Korea (9,000 MT), Canada (3,200 MT), and unknown destinations (800 MT).

Exports of 50,800 MT were down 25 percent from the previous week and 28 percent from the prior four-week average. The primary destinations were Japan (10,000 MT), Haiti (10,000 MT), Honduras (7,800 MT), Costa Rica (6,500 MT), and Mexico (5,700 MT).


This summary is based on reports from exporters from the period June 19-25, 2015.
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for July 2

Month
Price
Net Change
July 2015$10.380
+ $0.025
September 2015
$10.635
+ $0.010
November 2015
$10.900
+ $0.010
January 2016$11.165
+ $0.010
March 2016$11.365
+ $0.005
May 2016$11.365
+ $0.005
July 2016
$11.365
+ $0.005

In the News 

Around the Country

City of Austin Will Stick with Stage Two Water Restrictions, Maybe for Good Fox 7 News

Local rice farmers said they did not fight the emergency order this year because they don't need the water until planting season next year, but they don't want the LCRA to make a habit out of keeping the water to themselves when the lakes are above 70 percent full.

 

Rice Field Day Attracts Over 400 People to Discuss Future of the Rice Industry KLFY

The LSU AG Center Rice Research Station has been doing research on the how to grow rice for one hundred and seven years to help Louisiana farmers. The farmers help fund that research and the station by contributing five cents for every 100 pounds of rice sold... creating a continuous cycle for both parties.

 

Story Correction on Rice Payment Schedule for ARC-PLC Delta Farm Press

ARC/PLC payments for medium grain rice, excluding Japonica, will be made in early November 2015, rather than February 2016.

 

 

Tariffs and Trade

Local Rice Farmers May Soon Trade with Cuba Myarklamiss.com

Before the embargo in the 60's, they once traded with Cuba and did pretty well economically. Louisiana rice was exported to Cuba as one of the biggest markets we had here.

 

U.S. Rice Growers Want to Get In On Cuba Marketplace

Audio link included.  Should Congress decide to lift the embargo, the rice industry will be ready, says Terry Harris with Riceland Foods, a large rice miller and marketer. "We have the abilities, we have the infrastructure," he says. "We could ship rice to [Cuba] starting next week."

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