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					       TELLI NG   Our Story

California riCe Commission    2010 A N N u A L R E p o R T
California riCe Commission   2010 A N N u A L R E p o R T
  California’s rice growing families set a standard for everyone with their commitment
to stewardship that supports wildlife species and protects water quality. The CRC
and its members are future-focused and unafraid to engage an increasingly interested
public seeking solutions to some big challenges. I like rice in California.
	               Michael R. Dimock | President, Roots of Change
C H A I R M A N ’ S Message

                           Not too far from my office is the Richvale Café, where area rice farmers
                           enjoy coffee, a hearty meal and sharing the day’s trials and tribulations.
                           It wasn’t too long ago in our young history when face-to-face conversation
                           like that was the way most people passed along information.
                           Times have changed and so have our methods of communication.
                           As an organization, the California Rice Commission has not only been a strong
                           advocate for our industry, it also effectively tells our story to the legislators,
                           media and others who can impact our livelihood.
                           The newest CRC effort is social media, where our farmers are conveying
                           information to the public faster and more effectively than ever before.
            This is one of many ways the CRC has evolved with the changing world. Our organization has
            achieved in ways that many other agricultural organizations have not, from cultivating strong
            partnerships with conservation groups to creating innovative solutions to regulatory issues
            such as water quality and diesel engine regulations. Whether it’s in Sacramento or Washington,
            D.C., the work of the CRC provides legislators, decision makers and opinion leaders a greater
            understanding of the valuable role California rice provides for our environment, economy,
            culture and cuisine.
            The CRC is lean and keenly focused on assisting our industry in an effective, efficient manner.
            After industry input and discussion culminated by a vote of our Board of Directors, the
            Commission reorganized, including a 25 percent reduction in staff. Priority areas have
            been honed and the Commission has a laser-sharp focus moving forward.
            As my three year term as chairman has come to a close, I depart with the confidence that the
            CRC is fully engaged on the most important issues. Moving forward, it is increasingly clear
            that we need the work of the Commission as a strong advocate in the face of tightening
            regulations and increasingly complex challenges.
            It has been a distinct pleasure serving as CRC Chairman. The time I have spent has been
            very rewarding. I encourage all growers and handlers to attend industry meetings and
            become active in the Commission.
            Our future will be brighter because of it.


             Mark Kimmelshue
             Chairman, California Rice Commission
P R e S I d e N t ’ S Message

                            There are a lot of commissions and trade associations out there. Some,
                            like Western Growers Association, do a great job. Some do a particularly poor job.
                            Unfortunately, most just show up, then write a newsletter article about whatever
                            regulation, bill or the issue of the day has them running around.
                            It is engagement that sets the California Rice Commission apart. I can honestly say
                            that we are fully engaged every day in every critical issue impacting our industry.
                            We are doing what the members ask us to do – directly engaging in the regulatory,
                            legislative and public education issues that will determine our future. Where
                            appropriate, we even support targeted promotion efforts in our overseas markets.
                            We also actively pursue working relationships with conservation organizations
                            with a vested interest in the 230 species of wildlife that live in our fields.
             Looking back to last year, examples that spring off the pages of this report include managing all
             of the compliance requirements for the Irrigated Lands Regulatory Program and Rice Pesticides
             Program for growers. How about diesel emissions from trucks and, in the future, your tractors?
             We are there on both.
             In Washington, D.C. and the State Capitol, we meet regularly with members and their staff. We
             educate them on what it takes to grow rice and what it takes to remain profitable. We never miss
             an opportunity to dispel myths about water use or provide additional information on the growing
             importance of ricelands as critical habitat for so many species of wildlife.
             We also use new approaches to get the word out about our industry. The impact of social media
             cannot be over estimated. Nearly 6,000 readers now view our farmer blogs every month. Half
             of the members of the State Legislature, seven members of Congress and over 130 reporters follow
             us every day on Twitter and Facebook.
             Most importantly, the Commission is an opportunity for you the grower and the handler to be
             directly involved. Meetings are open and active participation encouraged. If we have been
             successful as an organization in the last decade it has been because of the industry’s first hand
             participation. Whether it’s a meeting in a legislator’s office or providing direction at a committee
             meeting, each of you has an opportunity to make a difference.
             And make a difference you do. We are widely seen as one of the most
             effective agricultural associations at the state and federal levels.
             This accolade comes because of one reason: an engaged membership.


             Tim Johnson
             President	&	CEO, California Rice Commission
wATER Quality
                                R e g u l Ato Ry

  The California rice Commission has done an exceptional                  experience, to build the only commodity specific coalition
  job in assisting rice farmers when it comes to water                    in the state. The CrC coalition manages the ilrP for the
  quality. The need for water quality programs can be                     rice industry with a monitoring and reporting program
  traced from 1977 to 1982, when two rice herbicides                      (mrP) tailored to rice cultural practices. Coalitions
  were attributed to environmental and nuisance problems.                 without a specific mrP must comply with the General
  The rice industry united, and through the collaboration                 order that requires monitoring of all constituents.
  of researchers, scientists,
  regulators and growers, the rice
  Pesticides Program evolved.
                                                 The Rice Commission’s strong leadership and proactive approach
  Today, we continue to monitor              have resulted in improved water quality to the benefit of the agricultural
  and manage the program for                 industry, Water Board, and public. The Water Board greatly appreciates
  thiobencarb (Bolero/abolish).
                                             the Commission’s efforts and their continued constructive
  no one at the time knew that the
  foundation was being built for             engagement in tackling our many challenging issues.
  future water quality programs              	              Pamela	Creedon | Executive Officer
  for rice, and also for agriculture                        Central Valley Regional Water Quality Control Board
  in general.

  in 2002, the waiver of a permit for discharges from                     in 2011, the current conditional ilrP will expire and be
  agricultural lands expired. all irrigated agriculture had to            replaced with a permanent, long-term ilrP (lT-ilrP) for
  comply with the ag Waiver, or irrigated lands regulatory                irrigation discharges to surface and groundwater. Where
  Program (ilrP), either                                                  the surface water program addresses pesticides, metals,
  as individuals, or                                                      nutrients and general parameters, the groundwater
  through coalitions. The                                                 program is specific to nutrients (nitrogen).
  rice industry used the
                                                                          once again, we have been given direction by our Board
  foundation, from more
                                                                          of Directors to manage a commodity specific program for
  than 20 years of
                                                                          rice. We are working to understand the available data and
                                                                          programs addressing groundwater in the rice growing
                                                                          regions of the state. our objective is to fully understand
                 mark lee from                                            the impact our industry has on groundwater in order to
                Kleinfelder, inc.
                  demonstrates                                            maintain our consistent track record of creating the most
                 the Kemmerer                                             practical and feasible program possible for the rice industry.
                water sampler.

          California Rice Wildlife Species

          Great	Blue	Heron
                                                                    4                           California riCe Commission
2010 ANNuAl RePoRt   5
CRop Protection Materials
                                R e g u l Ato Ry

  The California rice Commission has a long history                       However, in the past two years, we are formally increas-
  of managing pesticide regulation and crop protection                    ing communication with the researchers on pending and
  materials. Through the CrC’s industry affairs Committee,                emerging regulation. The increase in coordination assists
  regulatory issues are given close oversight, from pesticide             our stakeholders with identifying priorities that need
  registration to adjustments in label use. although you                  additional research.
  may never see the CrC take
  the lead position on a pesticide
                                                 The California Rice Commission is a leader             among organizations
  regulatory issue, rest assured
  there is plenty of behind-the-             when it comes to working on behalf of growers. The CRC continually
  scenes involvement. We have                engages in regulatory challenges , recognizing the importance
  a thorough knowledge of
                                             of working with key stakeholders in the interest of providing the
  regulatory timing in order to
  steward products through the
                                                                 rice grower with the best crop protection options.
  development and registration               	                       Deb	Shatley | Field Scientist, Crop Protection R&D, Dow AgroSciences
  process, which provides
  unprecedented support for
                                                                          We coordinate with the Usa rice federation on pesticide
  family rice farmers.
                                                                          issues related to trade. The maximum residue limit (mrl)
  in the past two years, we have                                          standards necessary for trade are managed in-house.
  increased outreach to major registrants on the pesticide                The CrC maintains the positive list for chemicals and
  needs for California rice. The meetings take place at each              coordinates with the Usa rice federation on comments
  company’s headquarters with the management and                          to the U.s. Department of agriculture and the countries
  technical staff. our objective is to educate the registrants            receiving California rice.
  in a manner that they consider California rice during the
                                                                          many additional rice pesticide issues take place through-
  product development phase.
                                                                          out the year with our involvement. The magnitude of
  another improvement is the implementation of an annual                                                       involvement is significant
  research scoping meeting to increase coordination with                                                       but sometimes not
  the California rice research Board, the UC Cooperative                                                       apparent because
  extension, the rice experiment station, UC Davis and the                                                     managing pesticide
  CrC. We have always worked well with these groups.                                                           regulation is a constantly
                                                                                                               ongoing process.

          California Rice Wildlife Species

          Peregrine	Falcon
                                                                    6                           California riCe Commission
                       above Don Traynham checks
             quality during harvest. right a tractor
                     (ground rig) with steel wheels,
             narrow rims and wide hubs, originally
               used on Dazig rig for flooded fields.

2010 ANNuAl RePoRt                                     7
AIR Quality Activities
                            R e g u l Ato Ry

  The California Rice Commission not only contin-                        Climate Change Policy
  ued its efforts on several ongoing air quality                         The air resources Board continued its implementation
  issues, we took on a new issue in 2010. These                          of California Global Warming solutions act (aB 32).
  related to four major air quality issues — diesel                      We monitored the efforts, primarily developing a
  truck regulations, emerging farm equipment                             Cap & Trade Program for “capped” sectors, such as power
  regulations, climate change policy and                                 generation and oil refineries, that will be required to
  conditional rice straw burning provisions.                             purchase emission allowances. agriculture continues
                                                                         to be treated as a voluntary sector, meaning we have
  Diesel Trucks                                                          an opportunity to be a part of the solution by finding
   Building upon the previous year’s success in getting most             voluntary reductions or “offsets” that can be marketed
   rice trucks eligible for special agricultural truck provisions,       within the allowance market. more broadly, we are
                  we worked with a number of other ag                    focused on aB 32’s overall regulatory design in order to
                   groups and the California air resources               limit the program’s impact on the cost of farming inputs
                   Board to promote reasonable implementa-               such as fuel and fertilizer.
                   tion procedures for program participants.
                                                                         We continue to move towards conclusion of our green-
                  This is an ongoing effort to address
                                                                         house gas emissions study managed jointly by the
                  administrative procedures of annual
                                                                         environmental Defense fund and funded through a grant
                   reporting, vehicle replacements and
                                                                         from the natural resources Conservation service. We
                  application procedures.
                                                                         have learned that finding an attractive voluntary practice
                                                                         in rice that would result in marketable greenhouse gas
  Diesel Farm Equipment
                                                                         offsets that is both economically viable and has little
  our efforts with the air resources Board and other
                                                                         or no agronomic risks will be very challenging. We’ve
  agricultural groups in the area of diesel farm equipment
                                                                         performed initial assessments of mid-season drainage,
  were largely restricted to preliminary work to help the
                                                                         straw baling and dry seeding. so far, baling may offer the
  air resources Board better understand the inventory of
                                                                         most opportunity, but only if an end use were to develop
   farm equipment and related emissions. This is preliminary
                                                                         in concert with a greenhouse gas offset trading program
  work for a future regulation that will address emissions
                                                                         suitable for rice.
   from diesel farm equipment.

                                                                     8                        California riCe Commission
 Conditional Rice Straw Burning
 The Conditional rice straw Burning Program is the
 regulatory framework allowing for continued disease-
 control burning of up to 25 percent per farm. The
 program was amended to eliminate the need for annual
 inspections, but requires the sacramento Valley agricul-
 tural Commissioners, commencing in 2010, to generally
 assess the levels of disease to make sure that no signifi-
 cant reductions in those levels have occurred over the
 previous five years, therefore supporting the need for
 the limited amount of disease-control burning.

 We worked hand-in-hand with the sacramento Valley
 Basinwide air Pollution Control Council (Basinwide
 Council) and UC Cooperative extension to develop a
 protocol that would streamline this effort. The result
 was agreement by the Basinwide Council that adequate
 disease levels are present in all counties to provide for
 disease control burning until 2015. This means no grower
 inspections will be required for at least another five years.

                                                                  California Rice Wildlife Species

                                                                         Long-billed	Curlew
2010 ANNuAl RePoRt                                            9

  Water Supply                                                   Water Quality
  With the vote on the state water bond postponed, the           The Commission continues to work to maintain the
  debate about water, its use and benefits has only been         use of thiobencarb (Bolero/abolish) through the rice
  amplified. We expect increased pressure from opponents         Pesticides Program (rPP). future use of thiobencarb
  and regional interest to intensify as the cost for solutions   is critical to the rice industry complying with water-
  rises and the ability of the state and federal governments     holding requirements that keep excessive product out
  to invest in infrastructure continues to languish.             of the drains. The irrigated lands regulatory Program

  our focus will increasingly be to tell urban residents of      (ilrP) will expand to include groundwater through the

  the unparalleled benefit of flooded rice fields to wildlife.   long-term ilrP (lT-ilrP). We are using the ilrP model

  Working with the northern California Water association,        to define an lT-ilrP program for rice.

  we are also embarking on a region wide effort to commu-        methyl mercury represents a potentially significant water
  nicate the unique landscapes that are the sacramento           quality issue moving forward. in 2010, the Central Valley
  Valley and how water is the underpinning of our regional       regional Water Quality Control Board adopted a TmDl
  sustainability.                                                for methyl mercury, which is a form of mercury that
                                                                 bio-accumulates in fish. We will be engaged in research
  Farm Bill
                                                                 initiatives in the coming years to help prepare for this
  The growing budget crisis in Washington, D.C. will drive       regulatory compliance issue with implementation
  the next farm bill. many predict a 1996-style debate,          expected in the next 8–10 years.
  where budget pressures severely reduced payments
  well ahead of the farm bill actually being drafted.            Crop Protection Materials

  The California rice Commission is working with Usa rice        The Commission monitors litigation involving the

  federation to ensure that we have a voice in the debate        endangered species act that may affect the future use

  and to ensure that the safety net for our farms remains        of crop protection materials. many water quality programs

  effective. our job will be to ensure that any new options      cross over into the management of crop protection

  work in a state like ours with high input costs.               materials. The rice Pesticides Program (rPP) is a water
                                                                 quality program that directly affects the future use of
                                                                 thiobencarb (Bolero/abolish). The CrC collaborated on
                                                                 a brochure as a propanil management plan under the
                                                                 ilrP. in addition, the CrC is working with stakeholders
                                                                 on a Basin Plan amendment for the total maximum daily
                                                                 load (TmDl) program for pesticides that could affect
                                                                 how you apply crop protection materials. We continue to
                                                                 engage with registrants on new chemistry for a broader
                                                                 selection of crop protection materials.

                                                                                    California riCe Commission
 Air Quality                                                    Sustainability
 a potential major issue facing the industry will be the        The Commission will be closely monitoring the develop-
 upcoming final farm equipment rule to be adopted by the        ing sustainability movement. Currently, retailers and
 California air resources Board, although this decision is      other supply chain purchasers seem to be defining the
 not expected until 2012. We expect a regulatory proposal       goals and standards within this movement by going well
 that would be designed to retire older units over a period     beyond the core issues of environmental stewardship
 of years, starting with the oldest pieces of equipment         and resource consumption. The movement also seems
 first. as with the truck regulation, we will work towards      to be looking for various socio-economic standards at
 a regulatory design that limits the economic impact of         the farm level as well. We believe that growers should
 this regulation to the greatest extent possible.               have a strong voice in this area. We made initial inroads
                                                                in 2010 by specifically allocating Commission resources
 Conservation                                                   to effectively monitor and shape this issue on behalf
 The Commission is working to enable rice farmers to            of growers into the future.
 participate in incentive programs designed to encourage
 beneficial conservation practices. We expect this trend will   Public Education
 be reflected in the next farm bill and hope to create a high   Telling the compelling story of California rice to
 level of preparedness for California growers to participate    legislators, regulators, decision makers, opinion leaders
 in Conservation Title programs.                                and the media will continue to be a major focus. social
                                                                media outreach will gain momentum in 2011, with more
                                                                bloggers, frequent postings, more video reports and
                                                                additional guest blogs from chefs, conservationists,
                                                                legislators and others who will help broaden under-
                                                                standing of the diverse benefits of this industry to
                                                                target audiences.

2010 ANNuAl RePoRt

                          The California rice Commission continues our coopera-                                                               demonstrate the significant value of water used to flood
                           tive efforts with conservation groups to foster a greater                                                          rice fields. The new report, published in may 2010,
                           understanding of waterbird use of rice fields. as a result                                                         highlights the following key points:
                           of direct grower involvement in our workshops, individual                                                          ■■   The California rice industry supplies water for the
                           rice farmers are now working with the migratory Bird                                                                    flooding of approximately 57 percent of the sacramento
                           Conservation Partnership (mBCP), comprised of                                                                           Valley’s neighboring wetlands.
                          audubon California, PrBo Conservation science                                                                       ■■   approximately 60 percent of all food consumed
                           and The nature Conservancy. The Commission and the                                                                      by wintering waterfowl comes from rice fields.
                           mBCP have moved into the pilot stage to test and monitor                                                           ■■   if the California rice industry were to shrink by
                           new practice concepts in rice fields expected to increase                                                               50 percent, there would be 1.2 million fewer ducks
                           their value as waterbird habitat. Together, we                                                                          in the sacramento Valley.
                           are examining a handful of new field
                           management concepts including                                                                    We are delighted to be working with the
                           earlier fall flooding, variable depth                                                        California Rice Commission and individual growers
                           winter flooding and enhancements
                                                                                                                         to further enhance the habitat value of California’s
                           of nesting habitat.
                                                                                                                         rice fields to waterbirds. Our joint efforts are
                          The Commission and the mBCP are
                           also working with the natural resources                                                      essential to conserving shorebirds, waterfowl and other birds that
                           Conservation service to develop                                                               migrate across the entire Pacific Flyway. We look forward to our
                           mechanisms to cost-share the
                                                                                                                        continued work together over the years ahead!
                                                                               implementation of
Assessing WAterbird benefits from WAter use in

California Ricelands                                                           these promising new                      	                Ellie	M.	Cohen	| President and CEO, PRBO Conservation Science

                                                                               beneficial practices.
                                                                               our goal is to streamline the process                          ■■   California ricelands provide the nutritional equivalent
                                                                               for signing up for these practices as part                          of approximately 235,000 acres of wetlands and the
                                                                                                     of established farm bill conser-              current cost to create this amount of new wetlands
                                                California Rice
                                                                                                                                                   is estimated at $1.5 billion and would cost $30 million
                                                                                                     vation programs.
                             Ducks Love Us
                                        Report Prepared By
                                                                                                                                                   a year to maintain.
                                                                                                     We also contracted with Ducks
                                                                                                                                              These are the types of statements that we believe will help
                                                                                                     Unlimited to conduct some new
                                                                                                                                              make California rice more relevant as the pressure on
                                                                                                     analysis to quantify the benefits
                                                                                                                                              resources, such as water and wildlife habitat, builds in the
                                                                                                     of rice production to wintering
                                                                                                                                              coming years. We are working to develop even more
                                                                                                     waterfowl. This work was done
                    California Ricelands provide 60 percent of the food for                                                                   quantifiable assessments of California ricelands wildlife
                    migrating waterfowl, including Northern Pintail Ducks.
                                                                                                     as part of our efforts to
                                                                                                                                              values in the coming years.
                    A recent analysis by wildlife            worth of habitat to 230 wildlife
                    biologists shows that, if                 species, with the crop grown in
                    California rice acreage were                a water depth of just five inches.
                    cut in half, about one million              Our industry is working closely
                    fewer ducks would use the                   with conservation groups to
                    Sacramento Valley. California              ensure we are doing all that we
                    ricelands provide nearly $1.5 billion    can to enhance wildlife habitat.

                    To learn more, visit

                                                                                                                                         12                       California riCe Commission
            above sandhill Cranes in
            a sacramento Valley rice
               field. right Discussion
             between participants at
            the waterbird workshop.

                                              California Rice Wildlife Species

                                                     Giant	Garter	Snake
2010 ANNuAl RePoRt                       13

 This past year, the California Rice Commission                         Water
 worked successfully on several fronts to engage                        educating legislators on benefits of water use in California
 and educate Legislators in Sacramento and                              rice fields continued to be a primary message delivered at
 Washington, D.C.                                                       the state and federal levels. in coordination with outreach
                                                                        from advertising campaigns in the Sacramento Bee and
 Federal Issues
                                                                        Capitol Weekly, the Commission met with more than
 The Commission again organized three trips for industry                60 state legislators and members of the administration.
 members to walk the halls of Congress and meet face-to-                We delivered information on the efficiency of water
 face with legislators, key aides and the administration.               used for California rice, and how that water not only
 important discussions occurred on trade, federal farm                  grows a valuable crop, but it also provides unparalleled
 and conservation programs.                                             environmental benefits. legislators were receptive

 a significant breakthrough occurred in our efforts to                  and impressed with how rice farmers are protecting

 protect and preserve the Wakamatsu Tea and silk Colony                 230 wildlife species.

                                 site in the Gold Country. Bills
                                                                        Legislative Day
                                 authored by 4th Congressional
                                 District representative Tom            The Commission’s ninth annual Circle of life reception

                                 mcClintock and U.s. senator            provided an outstanding opportunity to bring the story

                                 Barbara Boxer are making their         of California rice to the state Capitol. rice farmers and

                                 way in Congress, to complete           millers were able to visit with legislators, regulators,

 the purchase and management of the 272-acre ranch near                 media and others at the event, which featured a stunning

 Coloma by the U.s. Department of interior’s Bureau of                  fabric collage by artist merle axelrad serlin depicting an

 land management. it appears there is positive momen-                   aerial view of sacramento Valley rice fields. This artwork is

 tum to make this effort a reality, thus honoring a site of             now hanging in the office of assembly member fiona ma.

 enormous significance to Japanese americans.                           assembly member ma and Governor schwarzenegger’s

 We will continue to work in conjunction with the Usa                   Chief of staff susan Kennedy battled to a tie in our annual

 rice federation during upcoming farm bill discussions,                 Capitol roller sushi Competition, defeating senator

 which are expected to be extremely challenging, consid-                Dennis Hollingsworth in making a California roll. The

 ering our country’s fiscal state.                                      winners split possession of the coveted Capitol roller
                                                                        award, a framed samurai sword, until the next competition.

                                                                        The Commission also presented its Circle of life award
                                                                        to conservation groups audubon California, PrBo
                                                                        Conservation science and The nature Conservancy, which
                                                                        comprise the migratory Bird Conservation Partnership.

         California Rice Wildlife Species

         Loggerhead	Shrike
                                                                   14                       California riCe Commission
                                          left senator leland Yee visits with rice
                                          farmers at the Capitol. above Capitol
                                          roller co-winners susan Kennedy and
                                          assembly member fiona ma show off
                                          their prized award.

                When an issue affecting rice arises in Washington, D.C., folks can count on the
            California Rice Commission for effective advice, counsel and leadership. Whether
            it be Republican or Democratic Administration and/or Congress,
            the California Rice Commission works in a bipartisan way to ensure
            the voice of the California rice industry is effectively heard.
            	                          Randy	Russell | Russell & Barron

2010 ANNuAl RePoRt                             15
puBLIC Education

  a year ago, it would have been difficult to imagine that             The 2010 legislative Day Circle of life reception in
  tweets, blogs and vlogs would have such an impact on                 sacramento proved to be another valuable outreach.
  telling our story. These social media delivery methods are           Highlights for the nearly 120 attendees included sampling
  among the tools we have added in communicating the                   gourmet California rice dishes and the first tie in the
  enormous and diverse value of California rice to legisla-            history of the Capitol roller sushi Competition. media
  tors, media and other important audiences.                           participation in the event included commentary from
                                                                       emcee, KCra 3 reports news anchor Gulstan Dart.
  The first family farmer blog was posted on the CrC
                                                                       Total coverage of the competition reached more than
  website in January. in short order, the blog page became
                                                                       500,000 readers, listeners and viewers.
  one of the most popular on the site. feeding the public
  hunger for information direct from farmers, there are now            advertising provided additional avenues for telling our
  11 bloggers providing writing, photography and video clips,          story. a series of ads in the Sacramento Bee and Capitol
  which are read by thousands each month.                              Weekly highlighted the tremendous environmental
                                                                       benefits from California ricelands, reaching a total
  The next step in social media outreach came in July, with
                                                                       audience of nearly 1.5 million readers and internet users.
  the Board of Director’s approval of CrC’s presence on
  facebook, Twitter and YouTube. These links have driven               Telling our story in the future will continue to evolve.
  website traffic to levels seen only one time prior — the rice        Creativity and flexibility will be important tools in
  price crisis in early 2008. all told, the CrC website had                                                                                                                           continuing to
                                                                                                            California Rice
  nearly two million hits last year, and expectations are for                                                                                                                         effectively reach
  solid growth in the coming year.                                                Preserving California’s                                                                             key audiences

  other public education outreach included handling nearly                        Wild Side                                                                                           with the story of
                                                                                                                                                                                      California rice.
  80 media inquiries. Coverage of California rice included
  reports from all sacramento television stations, the
  Sacramento Bee, Comstock’s and California Country
  magazine. additional stories were generated from
  cultural media and national outlets, including the History
  Channel show “modern marvels,” which filmed an hour
  long special on rice industry innovations.
                                                                         No crop does more for our environment than California rice.

                                                                           A vast array of wildlife depends on Sacramento          species flourishing in these habitats.
                                                                           Valley rice fields and wetlands for food                       The California rice industry thanks our
                                                                           and habitat. This invaluable asset is                            partners in conservation for their
                                                                           enhanced and protected by California                              efforts to help maintain and restore
                                                                           family rice farmers. Our industry                                  some of the state’s most valuable
                                                                           works proactively with conservation                                natural assets. With the loss of most
                                                                           groups to ensure this region remains                             of the natural wetlands in the Central
                                                                           a haven for ducks, geese, egrets, herons                       Valley, habitat provided by flooded rice
                                                                           and shorebirds that are part of the 230 wildlife        farms would be nearly impossible to replace.

                                                                                        To learn more about how California rice benefits
                                                                                          the environment, go to:

                                                                                                We thank our partners in conservation
                                                                           Audubon California              California Wildlife                    USDA Natural Resources
                                                                           California Department           Conservation Board                     Conservation Service
                                                                           of Conservation                 Central Valley Bird Club               PRBO Conservation Science
                                                                           California Department           Central Valley Joint Venture           The Nature Conservancy
                                                                           of Fish and Game                Ducks Unlimited                        U.S. Fish and Wildlife Service
                                                                           California Waterfowl            Environmental Defense Fund             Western Hemisphere
                                                                                                                                                  Shorebird Reserve Network

          California Rice Wildlife Species

          American	White	Pelican
                                                                  16                                                             California riCe Commission
                 top film shoot at montna farms for
                    the “modern marvels” television
                 show. above KCra Channel 3 news
                             interviews Jack DeWit.

2010 ANNuAl RePoRt                              17

 The California Rice Commission, working in                                  information and cooking demos of the short and medium
 conjunction with the USA Rice Federation,                                   grain rice from California.
 continues to help safeguard important overseas                              in Korea, Calrose rice samples, recipe books, education
 markets for California rice and promote new                                 guides and other information has been provided to select
 export opportunities.                                                       food service chains to

  Since concerns were raised over the discovery of                           encourage their use of

  Genetically Modified Organisms in the Southern                             Calrose in their menus.

  U.S. rice supply, we continue rigorous testing                             in Taiwan, in-store
  protocols for seed and harvested rice, to provide                          promotions are ongoing,
  assurance for overseas buyers.                                             featuring California
                                                                             short and medium grain varieties. Young chefs are also
  California Promotions                                                      participating in contests utilizing California rice varieties.
  We remain active in traditional export markets and other                   in Canada, we continue to conduct chef training on
  destinations where opportunities exist for California                      U.s. rice at culinary schools. We feature all types and
  premium short and medium grain rice.                                       forms of U.s. rice in our curriculum including California
                                             in Japan, there were            premium short and medium grain rice.
                                             three enthusiastic              Consumers in the middle east also received a lot of
                                             winners to a Jambalaya          promotional information about California-grown rice.
                                             rice recipe contest that        seminars took place in retail centers throughout Turkey,
                                             required the use of             with thousands of samples of medium grain U.s. rice,
                                             Calrose rice. The               recipes, cookbooks and consumer bags. U.s. rice sales
                                             winners were able               increased fourfold during the promotions.
                                             to visit California and
                                                                             The U.s. origin label continues to help sales in Turkey,
                                             view harvest as part
                                                                             as consumers feel such identification guarantees a high
                                             of their prizes.
                                                                             quality product. This effort includes new identification
                                             in singapore, a                 on Calrose rice on the shelves of several hypermarkets.
                                             television advertising
                                                                             The Usa rice federation booths at major food shows
  campaign helped attract consumers to U.s. rice. addi-
                                                                             in istanbul and antalya featured different varieties of
  tionally, the Usa rice federation in conjunction with the
                                                                             U.s. rice, including Calrose, and displayed the Usa
  CrC has established a website in singapore to provide
                                                                             rice federation roll-ups and posters. an estimated
                                                                             40,000 people were reached with U.s. rice messages
                                                                             in each event. interest was high which has resulted
                                                                             in some 16 new trade leads from major distributors
                                                                             in Turkey and the surrounding countries.

          California Rice Wildlife Species

          Yellow-headed	Blackbird
                                                                        18                         California riCe Commission
 Tours facilitated by the Commission in conjunction with
 the Usa rice federation included government officials,
 traders, agricultural associations and media from Japan,
 south Korea, Taiwan and Germany.

 We also arranged meetings in coordination with the Usa          above a Korean delegation visits with industry
                                                                 members at the California rice experiment station.
 rice federation to discuss critical trade policy issues with
 officials from Japan and Taiwan.

2010 ANNuAl RePoRt                                          19
                 F I N A N C I A l Highlights

                                                                                                           for THe Years enDeD aUGUsT 31, 2009 anD 2010

                                                                                s TaT e m e n T o f f i n a n C i a l P o s i T i o n

                                                                                                                                2010           2009
fisCal Year 2009/10 ToTal BUDGeT— $3,963,074
                                                                                 A SSe tS

                                      Executive                                  Cash & investments                        $2,520,098      $1,858,349
                                      Rice Producers’                            receivables                                  331,276        268,762
                                      9.08%                                      Prepaid expense                                6,380          18,244
                                                     CA Dept.
                 Affairs                                                         Deferred Program expense                           0              0
                                                     of Food
                                                     & Agriculture
                                                                                 equipment                                     96,208          17,813
 Committee                                                     Domestic          ToTal asseTs                              $2,953,962      $2,163,168
 2.37%                                                         Market
                                                               4.27%             l I A B Il It I eS

                                                                                 accounts Payable                            $161,896       $172,436

                                                                                 Contracts Payable                             141,678        120,347

                                                                                 notes Payable                                      0              0

                                                                                 Deferred Program revenue                      29,100         31,600

                                                                                 accrued expenses                               34,128        36,697

                                                                                 neT asseTs, UnresTriCTeD                   $2,587,160    $1,802,088

                                                                                 ToTal liaBiliTies & neT asseTs            $2,953,962      $2,163,168

             37.37%                                     National
             Operating                                  Promotion
             Expenses*                                  Programs                s TaT e m e n T o f a C T i V i T i e s
                                                        (USA Rice Federation)

                                          .45%                                                                                  2010           2009
                                          Research &
                                          Technology                             revenues                                  $4,545,031      $4,321,971
                                                                                 Promotion & regulatory expenses            2,309,401       2,403,416

      *noTe: Chart represents direct spending by category;
                                                                                 operating expenses                         1,404,994       1,339,910
       operating expenses not allocated to programs.
                                                                                 CDfa Departmental expenses                    45,564         64,438

                                                                                 Change in Unrestricted net assets            785,072         514,207

                                                                                 Unrestricted net assets
                                                                                                                            1,802,088       1,287,881
                                                                                 Beginning of Year

                                                                                 Unrestricted net assets
                                                                                                                            $2,587,160    $1,802,088
                                                                                 End of Year

                                                                                                                  California riCe Commission
c a l i f o r n i a RICe CoMMISSIoN

                               8801 folsom Blvd., suite 172
                              sacramento, Ca 95826-3249
                                          (916) 387-2264

               Tim Johnson, President & CEO                        Roberta Firoved, Industry Affairs Manager
               Paul Buttner, Manager of Environmental Affairs      Jim Morris, Communications Manager
               Julie Cader, Finance & Administration Manager       Jessica Welch, Executive Assistant

2 0 0 9/ 2 0 1 0 CoMMIt teeS

eXeCutIVe                            al montna                     Henry Kalfsbeek                        David Dumars
mark Kimmelshue, Chair               frank rehermann               mark Kimmelshue                        Jim Higa
Charley mathews, Vice Chair          steve rystrom                 Jim laGrande                           Bert manuel
michael sandrock, secretary          Don Traynham                  mike lux                               Charley mathews
frank rehermann, Treasurer           Walt Trevethan                Dominic nevis                          Kirk messick
Don Bransford                        Bob Van Dyke                  rob Paschoal                           Chuck Pappageorge
sean Doherty                         Tom Butler (a)                ronald Phelps                          John Valpey
Don Traynham                         mike lux (a)                  lorenzo Pope                           Bob Watts
John Valpey                          andrew rudd (a)               frank rehermann                        Kurt Barrett (a)
                                     michael rue (a)               Jim rogers                             Bob Van Dyke (a)
Budget & FINANCe                     Josh sheppard (a)             Bruce rolen                            Bill Wallace (a)
frank rehermann, Chair                                             andrew rudd                            sandy Willard Denn (a)
Chris Capaul                         doMeStIC MARKetINg            Dan squires                            logan Wilson (a)
                                     & PRoMotIoN
Paul Chamlee                                                       sandy Willard Denn
Pat Daddow                           Chris Crutchfield, Chair      michael Bosworth (a)                   ReSeARCH
                                     Paul Chamlee                                                         & teCHNology
Bill Helms                                                         ralph Cassady (a)
mark Kimmelshue                      Ken Cox                       Josh sheppard (a)                      Keith Hargrove, Chair
ronald Phelps                        David Dumars                  Paul squires (a)                       alex Balafoutis
Brian reines                         John Hasbrook                 Bill Wallace (a)                       Dana Dickey
michael sandrock                     Jim Higa                                                             sean Doherty
Joe struckmeyer                      steven michel                 I N t e R N At I o N A l               mark Kimmelshue
                                     Karen myers                   MARKetINg                              Charley mathews
Tom Butler (a)                                                     & PRoMotIoN
Bruce rolen (a)                      Brendan o’Donnell                                                    Brad mcGeoghegan
                                     Tim o’Donnell                 michael rue, Chair                     Kent mcKenzie
Josh sheppard (a)
                                     Bart scofield                 alex Balafoutis                        lorenzo Pope
CAlIFoRNIA RICe                      nicole Van Vleck              michael Boeger                         Johnny Barnette (a)
PRoduCeRS’ gRouP                     Donna Bayliss (a)             Terry Bressler                         sandy Willard Denn (a)
Don Bransford, Chair                 michael Bosworth (a)          Chris Crutchfield
michael Boeger                       Jim Campbell (a)
ralph Cassady                        Kent Wiley (a)
Keith Davis
sean Doherty                         I N d u S t Ry A F FA I R S
                                                                   fro nT coVEr sean and Gus Doherty. i n n Er coVEr Homer, Wendell,
Punch Haskell                        Walt Trevethan, Chair         Jessica, Bryce and Jill lundberg with their dog Gus; Don and Jennifer
Henry Kalfsbeek                      Don Bransford                 Traynham with daughters allison and Whitney; Charley and Hilliary
Jim laGrande                         steve Butler                  mathews with sons Parker and adam; sean and melissa Doherty
                                     Jerry Cardoso                 with their children Hannah, Gus and mary.
leo laGrande
Bert manuel                          Keith Davis                   Photos of these families were taken by Paolo Vescia.
Charley mathews                      sean Doherty                  Sandhill Crane photo on page 13 taken by Mary Wurlitzer.
w w w. c a l r i c e . o r g

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