Riceland Grading Standards Update

Dear Valued Member,

Riceland is introducing a grade #2 rough rice grading standard to facilitate effective inventory management and increase rice sales opportunities. As a farmer-owned cooperative, Riceland has a farmer-friendly grading system for rice compared to USDA standards. However, the significant gap in grading factors between Riceland #1 rice and #3 rice hinders inventory management and marketing. There will be no grade discount for a #2. The monetary value for #1 and #2 is the same.

It's been 13 years since the last grading standard revision, and the rice industry has changed significantly. The number of rice varieties has increased, and the quantity of rough rice sales by Riceland has also increased. Introducing #2 rice and slightly adjusting grading factors for #3 will allow for a higher level of inventory management and more effective rice marketing. When using these new factors and comparing them to receipts for the 2023 crop, the additional discounts for #3 rice were negligible. It's important to note that no grade discount is associated with Riceland #2 grade.

We believe these changes achieve the goal of greater inventory management and increase opportunities to market rice while not negatively impacting our farmer-members.  

Below is a chart outlining each grade's discount, which is the same as in previous years.

RFI Grade. Grade Discount

1                  $0.000

2.                $0.000

3                 $0.135

4                 $0.270

5                 $0.450

The primary purpose of the change is to enhance the cooperative's inventory management system, providing our team with deeper insights into grain quality. This grading standard change will position the cooperative optimally for marketing rice via rough rice or milled rice sales, benefiting all members.

Please contact your local bookkeeper, drier manager or district manager with any questions.

Thank you for your patronage. We are committed to serving you and ensuring your success. Go Big Blue!