The CEO Connection

Harvest is here! Harvest continues to get earlier every year, but your cooperative has been working diligently to ensure we are ready to dump your trucks and get them back to the field as quickly as possible. Riceland received its first load of soybeans at Pendleton on July 29, and the first load of rice arrived in Stuttgart a few days later. But before we talk about the new crop, I want to give an update on company performance for the old crop.

Your dedicated Riceland staff delivered a turnaround year in the Rice Division. The July advance on the long grain seasonal pool was $.45 per bushel, bringing the total advance to date to $6.50 per bushel on a standard 55/70 milling yield. The advance on medium grain was $.55, bringing the total advanced to date to $6.80 per bushel on 59/69. With one more final advance to go, these strong numbers indicate a profitable Rice Division and high-level execution by your staff! I am extremely proud of this team.

The Soy Division had a respectable year, considering the U.S. market was flooded with soybean meal and oil. New crush capacity coming online to feed the renewable fuels industry overproduced for current demand, which pushed prices for meal and oil lower, which lowered prices for beans. Riceland members marketing beans through the cooperatives’ cash and basis marketing options averaged nearly $9.90 per bushel for the year.

I am very proud of the Soy Division Team for their high performance. Unfortunately, negative market factors pushed margins to their lowest levels in four years.

During the July Board Meeting, the board approved several capital projects in the Rice and Drier Divisions that are part of the Seven-Year Operations Plan. Your investment in the cooperative through base capital is being put to work to achieve the goals of better returns and to continue a high level of service for our members.

The cooperative will handle a smaller rice crop this year due to lower planted acres in many of our core membership areas. The Drier Division has put a plan together to service the membership at a high level while keeping costs as low as possible.

I pray for a bountiful and safe harvest, and the team is ready to assist our members to ensure that the 2025 harvest is the best it can be. Be safe out there!

Go Big Blue,

Kevin McGilton
Chief Executive Officer