The Rice Industry has used USDA FSA loan factors to calculate milling yield premiums and discounts for many years. These factors assume a par milling yield for long grain rice of 55/70. For 2025 long grain rice, the FSA loan factors are $11.03 per cwt. for whole kernel (fancy) and $7.81 per cwt. for brokens. USDA adjusts these factors annually.

However, usage of the USDA FSA loan factors is no longer economically feasible. The statutory values are less than half of the actual market values for whole kernel or brokens. And average milling yields for the rice crops grown in the Mid-South have fallen well below the historical industry standard par milling yield of 55/70. Taken together, these conditions make it impractical to continue using the USDA loan factors as the basis for Riceland’s milling premiums and discounts for purchased rice.  

Starting August 1, 2025, Riceland will base premiums and discounts for purchased rice on the following factors ($22.06 whole kernel and $15.62 broken). This change will better represent the true value of higher and lower milling rice. And it rewards patrons who deliver higher milling yield rice.

For purchased rice contracts, the minimum milling yield will continue to be 48 lb. whole kernel and 65 lb total. (48/65)   Additional discounts are subject to change but will be initially -$0.50 / cwt for rice between 30-39lb whole kernel and -$1.00/cwt for rice below 30 lb. whole kernel. This additional discount is needed because poor milling rice generates substantially less revenue and incurs higher milling costs.

Examples for grade 2 long grain rice purchased at $6.00 per bu. (55/70):

Fancy / Total                              Net$/Bu.

60/70                                          $6.14

55/70                                          $6.00

48/69 (avg. of 2024 crop)       $5.73

45/70                                          $5.71

39/68                                          $5.17

Starting August 1, 2025, for any purchased medium grain, Riceland will base premiums and discounts on the following factors ($20.54 whole kernel and $15.62 brokens).

As a reminder, sign-up deadline is June 30^th. If you have already signed up and due to this change, you need to review your sign-up information, please contact your local bookkeeper or drier manager.

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