Blog - Page 9 of 110 - US Rice Producers Association

The enduring partnership between the US Rice Producers Association (USRPA) and the Central American Rice Federation (FECARROZ) has thrived for over two decades, underscoring a shared commitment to strengthening the region’s rice industry.

At a recent meeting, USRPA Western Hemisphere Marketing Manager Iris Figueroa joined key representatives from the Central American rice sector, including leaders from El Salvador, Guatemala, Nicaragua, Honduras, and Costa Rica, to discuss critical issues affecting the current rice market.

“It is essential for us to be present at these meetings—not only to demonstrate our support but also to engage in meaningful, one-on-one conversations to address any questions,” said Figueroa.

Participating virtually, USRPA President and CEO Marcela Garcia reaffirmed the association’s dedication to working closely with FECARROZ. Also joining remotely was Alice Gomez, Principal Advisor at Cornerstone, who provided an update on the latest trade developments.
USRPA actively runs promotional programs in Guatemala, Honduras, and El Salvador while also collaborating closely with other regions to expand its outreach and impact.

House and Senate budget resolutions top of mind, directing topline cuts to the Agriculture Committees:

Last week, the Senate Committee on the Budget easily pushed their budget resolution out of committee along a party-line vote of 11-10. The Committee approved resolution would direct the Senate Committee on Agriculture, Nutrition, and Forestry to cut no less than $1 billion in mandatory spending over the next ten fiscal years (FY 2026 through FY 2035). Following the Senate, the House Budget Committee passed their budget resolution along a party-line vote of 21-16. Compared to the Senate, the House version of the resolution would direct the House Agriculture Committee to cut $230 billion within the Committee’s jurisdiction over the same ten fiscal year period. The budget resolution cannot and does not specify where each Committee of Congress may find changes in the budget to meet the budget resolution’s requirements. In the Ag Committee’s jurisdiction, the Supplemental Nutrition Assistance Program (SNAP) makes up more than 79 percent of the farm bill spending baseline over the next 10 years. Any major spending reductions required of the Agriculture Committees will drive the Committees to look to SNAP for much of the savings. Budget cuts of the magnitude of the House Resolution’s $230 billion to the Agriculture Committees could complicate the ability of the Committees and the Congress to pass a farm bill later this year.

On Thursday evening, the Senate initiated “Vote-A-Rama” and brought their Fiscal Year 2025 Senate budget resolution (S.Con.Res.7) to the floor for debate. Lasting late into the night and early this morning, the Senate eventually passed their budget resolution by a vote of 52-48. Sen. Rand Paul (R-KY) was notably the only Republican to vote against the budget resolution, along with the Democrats. With the House being out of session this week, they will evaluate their options and potentially attempt to pass their resolution on the floor when they return next week. While the House (-$230 billion) and Senate (-$1 billion) are far apart concerning the reductions in agriculture committee spending in their current budget resolutions, a single target must be agreed upon in conference between the two chambers before Congress can move forward with a budget reconciliation bill to enact the actual spending changes required by a single budget resolution agreed to by both the House and the Senate. Additionally, President Trump endorsed the House Republicans’ proposal earlier this week promoting one larger bill versus the Senate’s approach of wanting two separate bills, further complicating the Senate and House Republican positions on reconciliation.

Layoffs Hit Thousands of USDA Employees Across the Country

Recently, it was reported that the Trump Administration had fired thousands of U.S. Department of Agriculture (USDA) employees across the country as part of the Administration’s efforts to reduce the federal workforce. Layoffs have been spread across multiple agencies, including but not limited to the U.S. Forest Service, the Agriculture Research Service, the Foreign Agriculture Service, etc., and mostly were targeted toward new hires. Additionally, some senior executive staff across USDA were also given notice that they would be demoted or put on administrative leave. In times when the agriculture industry at large is facing economic headwinds and uncertainty, recent firings have resulted in the loss of highly technical experts in animal health, conservation and other essential aspects of the Department.

The market has been cruising along without significant change; with so much happening on a geopolitical front, this is no surprise. As a result, we will focus on planting intentions for the coming year and a GAIN update on what the Dominican Republic is doing to protect its rice industry from U.S. competition under CAFTA-DR.

To begin, planting intentions for the 2025 crop are very much in line with expectations from 2023 and 2024 (with 1%), but up over 20% from the 2022 crop. All in numbers at this stage of the game for both medium and long grain plantings rest at 2.888 million acres. With the reality of seed availability plaguing some long grain plantings, and a precarious water situation on the West Coast, it is believed that the odds are better for acres to decrease rather than increase by the time it’s all said and done. Several key market analysts are predicting a reduction in long-grain acres as high as 300,000 acres. Next week the USDA’s 101st Agricultural Outlook Forum (usda.gov) is expected to shed light on the situation and the overall market conditions for farmers. To break it down a bit further, of the 2.888 million acres, 2.202 million acres are projected for long grain and 686 thousand acres for medium grain.

Looking down the barrel at a crop of similar size, we can only hope to see favorable growing conditions that result in a higher quality crop than this year. This is increasingly important with cheaper options from the eastern hemisphere, as well as the DR moving to protect its rice industry from U.S. competition under CAFTA-DR. The Gain Report shows that on December 17, 2024, the DR issued a decree to limit its rice imports into the country. The Decree establishes a quote of 23,300 metric tons for U.S. rice subject to a 0% ad valorem tariff. Then, the next 17,810 MT of U.S. rice is subject to a 20% ad valorem tariff. Any U.S. rice over these two quotas will face a 99% tariff. This obviously will harm our ability to supply this market, but to quantify the impact, we see that the DR’s annual rice consumption is appx 650,000 MT. In 2024, 113,596 MT was imported. Of these imports, 46% (52,414 MT) was of U.S. origin, 34% (38,561 MT) from Brazil, and 12% (13,805 MT) from Uruguay. This means that if 2025 is a repeat of 2024, the first 23,300 MT at 0% is fine, the next 17,810 MT is questionable, and the remaining 11,304 MT is certainly lost.

The economics of rice farming are becoming increasingly difficult, and that is ever-present on the minds of farmers who can entertain a crop rotation or alternate crops. There is continued reliance on an updated farm bill, but that can’t quell the need for a long-term solution to the quality problem that has been plaguing U.S. rice. We look forward to future reports that can hone in on actual planting data to help clarify the expectations for the coming marketing cycle.

Today’s USDA export sales report will be closely observed for any indication of demand.

Brooke Rollins was sworn in as the 33rd U.S. Secretary of Agriculture by Associate Justice of the U.S. Supreme Court Clarence Thomas in a private ceremony today at the Supreme Court building. The U.S. Senate confirmed Rollins by a vote of 72-to-28.

“It is the honor of a lifetime to serve as the nation’s thirty-third Secretary of Agriculture — and a privilege beyond description to have the trust of President Donald J. Trump, and the opportunity to advance his agenda. I am thrilled to lead the United States Department of Agriculture and to serve the people of this country,” said U.S. Secretary of Agriculture Brooke Rollins. “Every day, I will fight for American farmers, ranchers, and the agriculture community. Together, we have a historic opportunity to revitalize rural America and to ensure that U.S. Agriculture remains the best in the world for generations to come.” Read more here.

Volume 22, Issue 12