USA Rice Daily
Up-to-the-Minute News on Issues and Activities
USA Rice will be closed Monday, October 12, in observation of Columbus Day.
USA Rice Daily will resume publication on Tuesday, October 13, 2015. 
Friday, October 9, 2015
Rice Leadership Class Session III:  California in Their Own Words 
SACRAMENTO, CA -- Who wouldn't want to spend a week here getting an overview of California's rice marketing and production practices, crop diversity, conservation and environmental issues, and a close-up look at the state's rice harvest?  It's an itinerary any young rice farmer would love.

We asked the seven members of the 2014-16 Rice Leadership Class for their impressions of the week-long learning session that included tours of the Glenn Colusa Irrigation District, an aerial audit of the Oroville Dam, Lake Shasta, and the Salinas Valley water systems, and a research update from Dr. Kent McKenzie, director of the California Rice Research Station in Biggs.  They also got to experience rice harvesting on Leo LaGrande's ranch, hear about conservation practices at Montna Farms, and tour PGP International where they observed the many ways rice is used as an ingredient.  Here's what they told us.

"I gained a new respect for growers in California while on this trip. They continue to produce a high quality crop despite the exceptional drought and intense regulation." -- Derek Haigwood, rice farmer from Newport, AR

"The trip was very insightful on the complexity of issues the local rice industry faces.  From water and air quality issues, to wildlife preservation, to water availability, and increased cost of production for producers, it became apparent very quickly that the California rice industry is a different ballgame from the South.  It appears to be a delicate political and regulatory balance of which everyone along the supply chain was cognizant."-- Jonathan Hobbs, Russell Marine Group

"It is important in every area of life to build strong relationships.  Through the Rice Leadership Development program I have been given the opportunity to meet and get to know people from every corner of the rice industry.  I have learned that though there are miles between us, we are more the same than we are different.  This program has definitely challenged me to think about our industry in a different way.  Instead of asking the question:  "What's good for me?"  Let's ask the question:  "What's good for all of us?" -- Jeremy Jones, rice farmer from England, AR

"This leg of the program in California has been great.  I have gotten to see parts of the region that I was not familiar with yet.  I especially appreciated learning about water rights and water issues facing California.  I am hoping others get a good sense of the struggles we have with regulations and labor so they can go back to their states and address the issues proactively." -- John Munger, rice farmer from Yuba City, CA

"Thank you to all the California rice industry leaders for taking the time to provide our class with a very educational week.  It was quite the eye-opening experience to see first-hand all of the challenges California faces.  It was apparent the industry out there has adapted very well to all of these challenges.  Coming from the South, I think we should use California's approach to dealing with issues as a game plan for the same challenges almost certainly headed our way."-- Will Reneau, rice farmer from Beaumont, TX

"Participation in the Leadership Class will help me in my career because it has made me a better storyteller, not just to tell the stories of Louisiana farmers but also those in Arkansas, California, Mississippi, Missouri, and Texas.  It's helping me inform stakeholders."-- A.J. Sabine, TWILA in Baton Rouge, LA

"Seeing all of the regulations that California producers are facing makes me afraid of what's coming down the pipeline for Arkansas.  We need to keep working together to make the U.S. rice industry as strong as possible for future generations."-- Clay Schaefer, rice farmer from Hunter, AR

From left:  Jeremy Jones, Derek Haigwood, Clay Schaefer, Will Reneau,
John Munger,  Jonathan Hobbs, Chuck Wilson (USA Rice), Kristen Dayton (USA Rice), Kevin Ripple (John Deere), AJ Sabine, and Leo LeGrande.
(photo courtesy Jim Morris, CRC)


The photo they didn't want you to see

The program is sponsored by John Deere Company, RiceTec, Inc., and American Commodity Company through The Rice Foundation and managed by USA Rice.

Contact:  Chuck Wilson (870) 673-7541 
Court Rules Nationwide Stay on WOTUS  
6th Circuit of Appeals 
Stay, WOTUS, stay 
WASHINGTON, DC -- This morning, by a 2-1 vote, the Sixth Circuit Court of Appeals stayed the Waters of the U.S. (WOTUS) rule nationwide, until it determines whether it has jurisdiction over the petitions for review.  Despite the fact that the ruling is for jurisdictional issues, the majority also found a substantial possibility of success on the merits of the lawsuit in two areas:  the rule does not comport with the U.S Supreme Court's Rapanos's opinion; and, significant changes in the rule, specifically the numeric distance limitations, were never subjected to public notice and comment. Since the 'bright line' of distance limitations from tributaries was  never broached by the EPA and Army Corp of Engineers in the proposed rule a win for agriculture on this merit would allow the rice industry and other agricultural groups to weigh in on this controversial aspect of the rule.

The decision immediately stays the rule nationwide although EPA has not yet responded publicly if they will adhere to the decision of the three judge panel.  If the agency ceases implementation and enforcement of the rule per the court's decision then the rule is stayed until other actions take place such as the decision being overturned by a higher court or the full court of appeals, or the jurisdiction question is settled and a court takes up the merits of the case.  

Contact: Steve Hensley (703) 236-1445
WASDE Report Released   

USDA logo WASHINGTON, DC -- U.S. all rice production in 2015/16 is forecast at 187.8 million cwt, down 1.7 million from last month with the decline entirely due to lower yield. The average all rice yield is forecast at 7,307 pounds per acre, down 67 pounds from last month, and the lowest since 2011/12. Yields are lowered for California, Louisiana, Mississippi, and Texas; increased for Missouri; and unchanged for Arkansas.  All rice harvested area is unchanged at 2.57 million acres.  Long-grain and combined medium- and short-grain rice production are both lowered from last month, with long-grain production projected at 130.3 million cwt and combined medium- and short-grain production at 57.5 million. The all rice import forecast is unchanged at 25.5 million cwt.  All rice domestic and residual use is unchanged at 125 million cwt.  All rice exports are unchanged at 97 million cwt with long-grain exports projected at 64 million and medium- and short-grain exports at 33 million.  All rice ending stocks are projected at 39.8 million cwt, down 1.7 million from last month with long-grain stocks at 21.8 million, and medium- and short-grain at 16.1 million.

The 2015/16 long-grain season-average farm price range is projected at $12.80 to $13.80 per cwt, unchanged from last month.  The medium- and short-grain farm price range is projected at $17.30 to $18.30 per cwt, down 20 cents per cwt on each end of the range.  The California medium- and short-grain rice price at a midpoint of $21.00 per cwt is unchanged from last month.  The Other States medium- and short-grain rice price at a midpoint of $14.00 per cwt is lowered 50 cents per cwt.  The all rice season-average farm price is forecast at $14.20 to $15.20 per cwt, unchanged from a month ago.

Projected global 2015/16 rice ending stocks are reduced on lower supplies. World ending stocks at 88.3 million tons are down 1.9 million from last month and the lowest since 2007/08.  Stocks have dropped 22.5 million tons or 20 percent since 2012/13.  The global stocks-to-use ratio at 18.1 percent is the smallest since 2006/07.  Global rice production is projected at 474.0 million tons, down 1.7 million from last month, primarily due to smaller crops forecast for India and Thailand.  Thailand's crop is lowered 1.6 million tons, or 9 percent, due to drought and low irrigation supplies in the lower northern region and central plains, as both area harvested and yield are lowered.  India's crop is lowered 500,000 tons to 103.5 million due to a 2 percent drop in area harvested.  Global 2015/16 rice consumption is projected at a record 487.5 million tons, up slightly from a month ago. Ending stocks for 2015/16 are lowered for China, India, Pakistan, Thailand, and the United States, partially offset with an increase for Philippines.

The complete report can be read here.
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for October 9

Month
Price
Net Change
November 2015$12.995
+ $0.005
January 2016
$13.285
+ $0.010
March 2016
$13.555
+ $0.005
May 2016$13.685
UNCH 
July 2016$13.840
+ $0.010
September 2016$13.125
+ $0.010
November 2016
$13.125
+ $0.010
In the News
Around Washington
Senate Committee Considers Food Aid Program Changes Farm Bureau Federation
A newly introduced bill, the Global Food Security Act of 2015, proposes changes to the way the United States handles food aid and could remove farmers further from the process.


Around the Country
Sacramento Valley Water Birds Affected by Post Harvest Drought Fox 40
The lack of water in California has cut down the rice acreage planted this year. As much as 30 percent of the rice fields went unplanted. Fewer acres planted means fewer fields being flooded for both growing rice and post-harvest flooding. Half of the millions of birds on the Pacific Flyway that feed in the Sacramento Valley rely on leftover rice in the fields after harvest.

West Sacramento's Post is on a Path of Profitability West Sacramento News-Ledger
The Port made a renewed effort toward profitability after reorganizing its business in July, 2013. At that time, seeking cost reductions and greater efficiencies, the City of West Sacramento turned over shipping management to a private company. SSA Marine, a worldwide port operator, now leases and manages the Port's North Terminal cargo facilities.


Tariffs and Trade
Business Groups Withholding TPP Support on Lack of Details Wall Street Journal
With big pharmaceutical companies and several other major industries disappointed by the Trans-Pacific Partnership, the broader business coalitions that have long backed the talks say they first must consult with their members.


Science and Technology
Bangladesh Rice Research Institute to Begin Field Trials of Golden Rice
Genetic Literacy Project

Upon completing a successful trial of the genetically engineered Golden Rice in its transgenic screen house, Bangladesh Rice Research Institute (BRRI) is now taking the variety - GR-2 E BRRI dhan29 - to confined field trials in the coming Boro season this November.
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