USA Rice Daily
Up-to-the-Minute News on Issues and Activities
Thursday, October 8, 2015
China WTO Compliance Front and Center    
Anybody home? 
WASHINGTON, DC -- USA Rice was represented yesterday at a public hearing held by the Office of the U.S. Trade Representative (USTR) on China's compliance with its obligations to the World Trade Organization (WTO).  Craig Thorn of DTB Associates provided testimony on behalf of USA Rice, U.S. Wheat Associates, and the U.S. Grains Council on the tremendous increase over the past decade in China's domestic support for rice, wheat, and corn production which has left China's support levels significantly higher than those in the United States. 
 
"(T)hese policies have put China in clear violation of its WTO commitments," said Thorn.  "Keep in mind that we were looking at only three commodities.  China has support programs for other products - such as pork, cotton, and oilseeds - which we did not include in our calculations." 
 
DTB Associates, on behalf of USA Rice, has carried out several studies of the WTO compliance of rice support programs in key global rice producing and import countries. 
 
USA Rice and DTB staff also met yesterday with staff of the U.S. International Trade Commission (USITC) to review findings by both DTB and the USITC on Vietnam's rice support programs.  The USITC published in April a comprehensive report Rice:  Global Competitiveness of the U.S. Industry. 
 
USA Rice and several other commodities groups are urging the administration to focus on the WTO compliance of countries like China and certain other advanced developing countries, and to utilize the WTO's dispute settlement mechanism as appropriate.
 
Contact:  Bob Cummings (703) 236-1473
Senator Boozman Closes Out National Rice Month Recognition in Congress     
 
Senator Boozman closes the book   
on National Rice Month 
WASHINGTON, DC -- Yesterday, Senator John Boozman (R-AR) addressed his colleagues from the Floor of the Senate and gave a salute to the rice industry as it celebrated the 25th Anniversary of National Rice Month in September.
 
Senator Boozman represents the largest rice-growing state in the United States, accounting for more than half of the annual rice production and the industry employs more than 25,000 Arkansans.  In his first term in the U.S. Senate, Senator Boozman has been a strong voice for the entire rice industry among fellow Members of Congress.
 
Boozman shared that he's "proud to promote policies that enable our farmers to manage risk and ensure that high quality US rice remains a staple on tables throughout the globe."
 
His floor speech followed one day after the introduction of legislation by Representative Rick Crawford (R-AR) that would remove agricultural trade and financing barriers with Cuba. Senator Boozman appropriately supported his fellow Arkansan's bill when he said, "The rice industry stands to benefit from a change in policies with Cuba, because it's a staple of the Cuban diet."
 
Boozman touted many statistics and benefits the rice industry provides, including contributions to the rice-growing states in the Mississippi Delta region's economy and wildlife.
 
Contact:  Julie Vieburg (703) 236-1467
Food Aid Reform Discussion Drags On    
 
Representative Randy Weber 
WASHINGTON, DC -- Yesterday, the House Foreign Affairs Committee held a hearing regarding U.S. international food aid programs following a similarly themed hearing last week by the House Agriculture Committee (USA Rice Daily, September 30, 2015).  While the Agriculture Committee focused mostly on the importance of maintaining in-kind food aid contributions by U.S. agriculture, the Foreign Affairs Committee targeted reforming food aid programs to allow for more flexibility and more use of cash vouchers.
 
Congressman Randy Weber (R-TX), a Member of the Committee and representative of a significant number of rice-growing acres, was the lone voice in support of distributing in-kind commodity contributions to food aid recipients.
 
When Rep. Weber provided his comments to the witnesses, he said, "Last week, Jamie Warshaw, with USA Rice, testified before my counterparts on the Agriculture Committee regarding the strong amount of good that comes with a bag of rice that reads "From the American People." 

A clip of Rep. Weber's comments during the hearing can be found here.
 
Contact:  Peter Bachmann (703) 236-1475
Weekly Rice Sales, Exports Reported  
WASHINGTON, DC -- Net rice sales of 22,000 MT for 2015/2016 were down 69 percent from the previous week and 68 percent from the prior four-week average, according to today's Export Sales Highlights report.  Increases reported for Haiti (9,100 MT), El Salvador (8,500 MT, including 8,700 MT switched from unknown destinations and decreases of 400 MT), Guatemala (7,800 MT, including 6,900 MT switched from unknown destinations and decreases of 100 MT), Turkey (3,000 MT), and Mexico (2,200 MT).  Decreases were reported for unknown destinations (15,600 MT). 

Exports of 87,700 MT, up noticeably from the previous week and up 15 percent from the prior four-week average, were reported to Haiti (23,500 MT), Turkey (19,500 MT), El Salvador (12,500 MT), Japan (12,000 MT), and Guatemala (9,200 MT). 


This summary is based on reports from exporters from the period September 25 - October 1, 2015.
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for October 8

Month
Price
Net Change
November 2015$12.990
- $0.335
January 2016
$13.275
- $0.340
March 2016
$13.550
- $0.335
May 2016$13.685
- $0.335
July 2016$13.830
- $0.330
September 2016$13.115
- $0.170
November 2016
$13.115
- $0.170
In the News
Around Washington
USDA: 6.8% Sequester Cut Progressive Farmer
Payments under PLC and ARC for 2014 will be cut 6.8% no matter when a farmer went to a Farm Service Agency county office to sign up.
 
 
Around the Country
Video report from Dr. Dario Bernacchi saying RiceTec intends to ramp up its use of its own gene discoveries and others to help growers improve weed control, rice quality and yields.
  

Tariffs and Trade
The current agreement maintains some of Japan's ability to protect its domestic industries, especially beef and rice, despite heavy pressure from the US during earlier bilateral talks. Still the current deal that concluded October 4 includes lower tariffs on meat (beef and pork) and rice, considered two of Japan's five "sacred" domestic products (wheat, barley and sugarcane are the others).
 
The Trans-Pacific Partnership trade deal would likely spur further restructuring in Japan's calcified agriculture sector, accelerating a push toward consolidation of small farms and a shift toward premium exports.
 
 
Science and Technology
The systems are capable of monitoring growth, checking humidity and temperature, raising and lowering lights, and adjusting nutrient levels. It is, or will be soon, a pretty remarkable thing: a seed to a mature crop with nothing more than the press of a button.
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