The Rice Advocate
US Rice Producers Association
Volume 8, Issue 8 Friday, February 25, 2011
US Rice Producers Association Stresses the
Need for a Single National Rice Producer Organization
Today in a letter addressed to the Chairman of the USA Rice Federation, the US Rice Producers Association expresses a
sincere desire to create a true, national, rice producer organization.
February 25, 2011
Mr. Jackie Loewer
Chairman, Board of Directors
USA Rice Federation
Arlington, Virginia
Dear Jackie,
Thank you for your letter of February 17 regarding the USA Rice Federation’s unilateral “invitation” to the
US Rice Producers Association to join the USA Rice Federation.
As I said in my letter of February 15, the position of the USRPA remains consistent with that held during our
2002-2003 discussion on this matter: we continue in our sincere desire to provide for a true, national, rice
producer organization.
To that end, we would invite the various state members of the USA Rice Producers’ Group to join with US-
RPA to form a single national rice producer organization, free from personal and non-producer conflicts of
interest.
As we made clear in 2003, we believe that successfully working together through such a producer-only
organization is a necessary precondition to any attempt to recreate the unattained promise that was envi-
sioned through the original concept of a broader rice industry “federation”.
It will take more than simply appending a box to an organizational chart to achieve this goal. It will take
hard work and difficult compromises by all concerned. Until we can establish a broader single national
producer-only organization, our priority will be to preserve a CHOICE for rice producers to be repre-
sented by a truly rice producer only organization.
We will make ourselves available at a mutually convenient time and place to discuss how we might
achieve the important producer goals we desire in a manner that is free from the counterproductive con-
flicts of interest we have outlined earlier.
Best regards,
Gary Murphy
Chairman, Board of Directors
Inside this issue:
Need of Single National Rice Producer Organization ..pg. 1 Loss of Great Friend & Leader .......................................pg. 2
NASS : 2011 Planting Intentions & Rice Stocks Survey .pg. 3 USRPA Works to Defend Use of 2,4-D Herbicide ......pg. 3
General Market Volume .....................................................pg.Page ARGA News Release .........................................................pg. 5
The Rice Advocate,Update 8, Issue 8 4 1 February 25, 2011
Loss of Great Friend & Leader Felt Throughout the Americas
Tulio Antonio Burgos Pernalete
1956 - 2011
Monday mornings are normally a hectic time of the
week for me but this past Monday everything came
to a sudden halt when I learned of the shocking
news of the death of a dear friend in Venezuela,
Tulio Antonio Burgos, as a result of a senseless
crime. When I received the disturbing news from
Wilfredo Bejarano of Nicaragua, my mind raced
back to when I first met Tulio some 12 years ago in
Caracas and how he made me feel so welcomed
with his big smile. A proud graduate of Louisiana
State University, Tulio has been an important figure Tulio with his sister, Maria Trina Burgos, at a reception during the 2009 Rice
in the Venezuelan rice farming industry and Americas Conference in Miami, Florida.
throughout Latin America while representing several
generations of his family’s rice farm. Always willing to serve and sup-
port, Tulio was President of the Guarico Rice Producers Association
(APROSIGUA), Vice-President of the Venezuelan Federation of Rice Pro-
ducing Associations (FEVEARROZ) and was the Director of the National
Rice Foundation (FUNDARROZ). Tulio also served on the Administrative
Committee of the prestigious Latin American Fund for Irrigated Rice
(FLAR), an organization with membership from throughout the Western
Hemisphere. A distinguished rice farmer in the State of Guarico, Tulio
was everyone’s friend and considered a pioneer in modern rice produc-
tion for Venezuela as he pushed for the use of advanced technology.
He was a tireless supporter for rice farmers. On behalf of the US Rice
Producers Association, our sincere condolences to all of his wonderful
family as well as his friends and the members of APROSIGUA. His big
smile and friendship will never be forgotten.
– Dwight Roberts
Tulio loved the rice fields and was a real LSU
Tiger Fan!
Tulio Burgos and Dwight Roberts at a breakfast meeting in Caracas in 2008.
The Rice Advocate, Volume 8, Issue 8 Page 2 February 25, 2011
NATIONAL AGRICULTURAL STATISTICS SERVICE
USDA to Survey Farmers’ 2011 Planting Intentions and Rice Stocks
Washington, D.C., Feb. 18, 2011 – On the From late February through the first
heels of record-high rice production last two weeks of March, NASS will contact a
year at 24.3 billion pounds, do U.S. farmers sample of rice producers by mail or tele-
intend to increase or decrease rice acreage in 2011? phone, asking them to provide information
How much rice is currently stored on the farm? These are about the types and acres of crops they intend to plant in
just a few of the questions that will be answered by the 2011. NASS will also collect data on quantities of grains
March Agricultural Survey, conducted by the U.S. Depart- and oilseeds stored on-farm, including rough rice stocks.
ment of Agriculture’s National Agricultural Statistics Ser- During this time, information about off-farm stocks of
vice (NASS). rough and milled rice will be collected from all known rice
“Each year, the agricultural industry eagerly storage facilities in the United States. NASS will then com-
awaits USDA’s Prospective Plantings report, which pro- pile, analyze and publish the data in a series of USDA
vides the first survey-based estimates of U.S. farmers’ reports, including the annual Prospective Plantings report
planting intentions for the year,” said Joe Prusacki, NASS and Rice Stocks report, both to be released on March 31.
Statistics Division director. “The March Agricultural Survey As with all NASS surveys, information provided
provides the factual data that underpins these projections, by respondents is confidential by law. “NASS safeguards
making it one of the most important surveys we conduct the privacy of all responses and publishes only state- and
each year.” national-level data, ensuring that no individual operation
Prusacki explained that data from the March Ag- or producer can be identified,” stated Prusacki.
ricultural Survey benefit rice producers by providing All reports are available on the NASS web site:
timely and accurate information to help them make critical www.nass.usda.gov. For more information on NASS sur-
decisions for their operation. “As growers finalize their veys and reports, call the NASS Agricultural Statistics Hot-
cropping and marketing plans, this survey will be one of line at (800) 727-9540.
the most important sources of information for them,” he
added.
USRPA Works to Defend Farm Use of 2,4-D Herbicide
This week USRPA representatives attended a meeting of Fungicide, and Rodenticide Act (FIFRA) would impose un-
the Industry Task Force on 2,4-D herbicide, regarding cur- warranted regulatory burdens on pesticide products and
rent research data and Environmental Protection Agency end uses, which would be inefficient, duplicative, and fi-
(EPA) concerns. The robust discussion covered scientific nancially burdensome.
studies supporting usage of 2,4-D and defenses to the 2,4-D can be used safely when label directions
attacks by environmentalist groups and in the press. are followed. Farmers have used 2,4-D for over 60
Presenters emphasized the widespread and long- years, and researchers have thoroughly studied the herbi-
standing usage of 2,4-D herbicide. Farmers have de- cide. Sound science and facts support responsible use of
pended on 2,4-D for more than 60 years in the United 2,4-D.
States and Canada. 2,4-D has been tested, retested, and Click Here to access documents comprising the
tested again. After rigorous analysis of relevant scientific “2,4-D Tool Kit” distributed at the meeting.
data, experts all agree that 2,4-D is not a human carcino-
gen, does not cause cancer in animals, does not cause
birth defects, does not bio-accumulate, does not metabo-
lize, is not persistent in water, soil or vegetation, and Agriculture Secretary Vilsack's Statement
breaks down into compounds of nontoxicological signifi- on Record Forecast for U.S. Farm Exports
cance.
Notwithstanding the above, environmental groups WASHINGTON, 2/25/2011
such as the Natural Resources Defense Council (NRDC)
continue to attack the use of 2,4-D both through petition Agriculture Secretary Tom Vilsack made the following state-
processes before the EPA and in the press. Concerned ment regarding today's quarterly forecast for U.S. agricultural
agricultural groups formed the Industry Task Force to exports, which are expected to reach a record $135.5 billion
monitor and rebut such attacks. in fiscal year 2011:
The meeting focused on the Endangered Species http://www.fas.usda.gov/scriptsw/PressRelease/
Act (ESA) and its regulation of pesticides. As currently con- pressrel_dout.asp?Entry=valid&PrNum=0045-11
templated under the ESA, the consultation process related
to pesticide registration actions under Federal Insecticide,
The Rice Advocate, Volume 8, Issue 8 Page 3 February 25, 2011
General Market Update
USDA raised WMP factors on Wednesday by 41 cents and their bankers to let go of their remaining rice. We
on long grain and by 43 cents on medium/short, due to are told that the variety specific new crop long grain
the slight weakening in Asian prices. Friday’s USDA contracting has been completed but that interest in new
export sales report was a letdown, posting only crop medium grain remains at the $24 per bbl level. If
26,900 metric tons of new sales for the week. Long not already being done, planting should be right
grain rough to Mexico and Honduras were welcome around the corner.
postings at a total of 11,600 tons. Long grain milled The Delta/Arkansas area is quiet, with low bids
totaled 9,500 tons with sales to Ghana (also good to for nearby shipment being the situation at present.
see and indicates that we can sell U.S. long grain at a There are some indications that barge shipments may
premium price to regular customers in Africa), the start to pick up soon, but bids in the vicinity of $11.00
United Kingdom, Canada, and Mexico. Saudi Arabia loaded barge nearby are being talked – and rejected.
and Canada headed the list of medium/short sales Things are only slightly better in Arkansas where bids
which totaled 5,600 tons. We need to export all that of $11.00 delivered for nearby shipment or $11.65
we can of all types of U.S. rice, but long grain milled for deferred shipment are being tossed around – again
rice exports are the key to improving prices paid to with no serious takers. Talk about the dry conditions in
farmers. It is very important that we find a way to Mississippi and Arkansas is being heard more fre-
move more to Iraq and other potential buyers. Hope- quently now. As far as new crop is concerned, a USDA
fully the next few weeks will hold more sales to Vene- economist predicted long grain rice plantings this year
zuela and maybe even Cuba which is reporting crop to be down by 750,000 acres. It will probably take
problems of its own. that large of a decrease to just clear up the problems
The confirmed exported section of the weekly we have with the current low milling stocks.
USDA report was more of a bright spot at a total of It looks as though Asian markets firmed a bit
87,900 tons. More than half of this was medium/short this week. Thai 100% Grade B was quoted between
milled at 46,300 tons, the largest portion of which went $525 and $535 per metric ton fob vessel, while Thai
unsurprisingly to Japan, followed by smaller amounts to parboiled was noted at $525 per ton. Viet 5% was
Canada, Israel, Jordan, and Saudi Arabia. The bal- reported at $465 to $475 per ton, with interest in Viet
ance of the weekly liftings were destined as long grain long grain being expressed by the Philippines and Ma-
rough to Mexico and Honduras, and as long grain laysia. Pakistani 5% was quoted at $470 per ton. We
milled to Haiti, Mexico, and Canada. continue to see these prices as fairly positive given the
In the wake of the huge drop in the rice futures fact that new crop harvests in Thailand and Vietnam
market last week and this week, it’s no surprise to re- have either completed or are fully underway. The Chi-
port a very quiet paddy market in all states. The ex- nese have said that they are going to develop high
port long grain milled rice business is slow, but there yielding rice seed to address their future food require-
are still sales that have yet to be covered. We believe ments. This makes us wonder what they will do in the
this will draw the mills and exporters back into the mar- meantime and just how much rice is going into China via
ket – just when that may be is the question. Buying in- unreported cross-border trade with Vietnam.
terest in Texas remains at the $5.50 to $6.00 variety Take a look at this week’s rice futures action,
specific range, but there is little or no interest in selling because it will take some looking to find a week
at these levels. Stocks remaining in first hands are lim- (especially a four-day week) where rice futures moved
ited, and producers are unwilling to let their rice go too the limit – and closed there – for three of the four days
cheaply. Planting in Texas has started in the midst of a – and had a 67.5 cent range on the fourth of those four
lot of conversation as to how dry it is. Everywhere in days. Welcome to the world of wide limits and hedge
the South where rice is planted needs rain. In south fund trading. After the Monday holiday, rice futures
Louisiana the week started with a bid of $20 per bbl, caught heavy overnight selling from Europe that contin-
but as the futures swooned, bidding slowed. Very little ued into the day session and locked at least the three
was reported confirmed at the $20 level – it will front months the 50 cent limit down. Wednesday
probably take $21 or higher to persuade producers (Continued on page 5)
In Japan, it is believed that soaking rice before cooking releases the life
energy and gives the eater a more peaceful soul.
The Rice Advocate, Volume 8, Issue 8 Page 4 February 25, 2011
General Market Update (continued)
(Continued from page 4)
traded for a while but eventually succumbed to selling
that took prices 75 cents limit lower. Exhaustion set in
Thursday as the market moved early down to a low of
13.10 and then to a session high of 13.775. Friday’s
traders saw value buying and short covering and took
the market up 50 cents to lock for most of the session.
Let there be no mistake – trading this market takes a
stout heart and a well lined pocket book. Friday left
the nearby March 85.5 cents above the week’s low but
still far from closing the first upside continuation chart
gap at 14.25. Volume for the four-day week was just
over 29,000 contracts, and open interest was down a
net of only 365 to 25,389 contracts from the previous
Thursday’s close. Hang on – we don’t think this action is
over yet by a long shot. In other markets, the Dow was
down for the week by 260 points; the Euro was at
1.3753 against the Dollar; and nearby crude futures,
after crossing the $100 bbl threshold during the week,
closed at 97.88 per bbl. Grains provided some pretty
fancy action during the week and saw Mar corn settle
at 7.12, Mar beans at 13.65-1/2, and Mar wheat at
8.87-1/2; May cotton closed at 184.23.
ARGA News Release
Arkansas Rice Growers Association: The Arkansas Rice Growers Association, Arkansas Forestry &
Paper Council, Arkansas Timber Producers Association and
State Senate Bill To Give Farmers a Choice Arkansas Forestry Association sponsored a reception for Ar-
kansas’ 1st district Congressman Rick Crawford this week at
Little Rock, AR—The Arkansas Rice Growers Association Chenal Country Club in Little Rock. Representative Crawford's
voiced strong support to SB 430 introduced Tuesday in district has more rice acres than any member of the House of
the Arkansas Senate. The proposed legislation will Representatives and he is very much in tune with the local rice
bring transparency and offer farmers a much needed farmers throughout his district. The event gave him an opportu-
choice. nity to meet timber producers and forestry advocates from the
southern part of Arkansas.
Click Here to read the
full release.
2825 Wilcrest Drive, Suite 505
Houston, Texas 77042
Phone: 713-974-RICE
Fax: 713-974-7696 Upcoming Events
March 3, 2011 MO Rice Council Meeting, Dexter, MO
Additional Resources March 31, 2011 TCTA, Exporting to Cuba Seminar, Houston, TX
For economic analysis on agricultural June 7 - 9, 2011 TRT Rice Americas 2011, Panama City, Panama
efficiency, efficacy, and equity
issues: www.ers.usda.gov For more information visit USRPA’s online calendar at: www.usriceproducers.com/calendar
Texas Rice from A&M AgriLife
Research Ctr. at Beaumont: http:// USDA Reports Next Week
beaumont.tamu.edu/eLibrary/ Agricultural Prices (NASS) Monday, February 28, 3:00 pm
eLibrary_default.htm U.S. Export Sales (FAS) Thursday, March 3, 8:30 am
AgFax - Editor: Owen Taylor:
All USDA reports are available by visiting http://www.usda.gov/wps/portal/?navid=AGENCY_REPORTS=RT.
www.agfax.com
USRPA News & TRA Archives: USRPA does not discriminate in its programs on the basis of race, color, national origin, sex, religion, age, disability, political beliefs,
www.usriceproducers.com/news or marital/family status. Persons with disabilities who require alternative means for communication of information (such as Braille,
large print, sign language interpreter) should contact USRPA at 713-974-7423.
The Rice Advocate, Volume 8, Issue 8 Page 5 February 25, 2011