Winter District Membership Meetings a Success!

Did you miss our Winter District Membership Meetings? Here are the highlights and some Frequently Asked Questions we want to share with you.

Highlights:

Meeting Members:

Jason Brancel, President & CEO for Riceland Foods, as well as Riceland Leadership, met with members, discussing member concerns through Q & A sessions at each meeting. Jason also unveiled the new Mission Statement and Values for the cooperative.

Our Mission:

• Riceland, a farmer-owned cooperative, helps farmers feed the world, sustainably.

Our Values:

• Honesty & Integrity
• Working Hard & Working Smart for Results
• Leading Courageously
• Being Kind & Courteous
• Industry Leadership & Innovation
• A commitment to the Whole

Market Outlook:

Grayson Daniels, Vice President for Grain Sales & Procurement, presented the outlook for 2023 which was higher supplies of long grain and medium grain rice and soybeans.  Early price predictions from USDA and others for the 2023 crop are around $7.00-$7.25 for long grain and $8-$9 for medium grain and $12.60-$13.25 for soybeans.  

Marketing Programs Update:

Daniels also shared that there were no major changes to the 2023 marketing programs, except minor date changes and new clarifications on which programs are for long grain and/or medium grain rice.

Riceland App:

Daniels also introduced the new “Make Offer” feature of the Riceland App that will be available soon. By selecting this feature, members can select a price, program (cash, hedge-to-arrive, or basis), and delivery period for a will-book or will-sell agreement with Riceland.

Riceland Carbon Ready Update:

Adam Shea, Senior Director of Sustainability for Riceland Foods, presented an update on Riceland Carbon Ready, part of the Ingrain Good Sustainability Initiative.

Frequently Asked Questions from our Members during the Winter Membership Meetings:

What is the Arkansas Rice Check-Off Proposal?

A proposal is being discussed within the Arkansas Rice Industry to increase the check-off due to inflation eroding funds available for research and promotion. At this time, a consensus position has not been agreed to and therefore a bill has not been filed with the state legislature.

What is the future of Riceland concerning On-Farm Storage?

Riceland team members shared that the on-farm storage component of our programs is growing annually. Staff reminded members that all marketing options (including the seasonal pool) are available for farm-stored rice.

What is the status of rice sales?

Things have been going well. Demand remains strong and our team has worked hard to maximize our returns.

What is the status of the Ad Hoc Assistance, also known as the Boozman Payment?

Our sources in Washington are advising that pre-filled forms should go out to farmers in late April or early May. Farmers will simply review the pre-filled forms to confirm the information is correct, sign them, and send them back to their local FSA office. The first payment will be processed once the form is received back at the county FSA office. USDA officials are giving guidance that the assistance will go out in two payments. The first payment will go out in late May and represent roughly 60% of the total. The balance will go out once USDA determines what total claims will be received and the balance of funds available to make the payment. Farmers should make sure their Form 510 (Adjusted Gross Income form) is up to date at FSA. The AGI determines which payment limit the farmer will have for the Boozman Payment.

What is happening with the Farm Bill?

Both the House and Senate Ag Committees are holding hearings to get stakeholder input on what changes need to be made in the new farm bill. Members of the committees are hearing loud and clear that the current farm bill does not provide an acceptable safety net for farmers. PLC Reference Prices are too low to provide adequate support when the current input costs are considered. Timing of the when a new farm bill will be completed is not known at this time.

What is going to happen with California’s Rice Acres with the increased snowpack?

The increased snowpack in California should translate to an increase in rice acres in California.

Is Riceland anticipating any location closures?

Riceland is not planning on closing any locations currently. We are constantly evaluating the financial performance of each drier location and working to implement a procurement strategy that provides benefits to our members.

How much of Riceland’s rice is exported? How much is sold domestically?

25 percent of our rice is exported, and 75 percent stays domestic.

Does Riceland Carbon Ready^TM involve carbon sequestration or avoidance?

Riceland Carbon Ready^TM is currently focused on carbon avoidance, not sequestration.

How is rice promoted with Check-Off funds? Why?

Half of the Arkansas Rice Check-off funds are used for the promotion of U.S. Rice domestically and internationally. The number one goal of these promotion programs is to increase demand for U.S. Rice. Annually, the U.S. Rice Industry exports 50% of the crop. That means promotion efforts overseas in traditional and new markets are critical to moving the crop. The Arkansas check-off funds along with check-off funds from other states are used to leverage Foreign Market Development and Market Access Program funds from USDA. The result is a $24 to $1 return for every check-off dollar.

Check-off funds are used to promote rice here at home but there are no matching government programs so the budgets are much smaller for domestic promotions. The staff at USA Rice do a great job producing creative programs to get the biggest bang for our limited domestic promotion bucks.

Are any research funds aimed at weeds in rice?

Funds for rice research cover all aspects of rice research, including those related to weeds in rice.

What will the 20% unrestricted funds be used for if approved in a new Arkansas rice check-off proposal?

The unrestricted funds give the Rice Research and Promotion Board the flexibility to move more funds into research or promotion whichever is needed. The funds could also be used to fund our state trade association, Arkansas Rice.

What is Jasmine rice?

Jasmine rice is no different from our rice, except it gives an aroma like popcorn when cooked. A new variety, AR22, is a Jasmine rice that we hope will give farmers a foothold in this trending market.

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