P.O. Box 1248 - Stuttgart, Arkansas 72160 - (870) 673-4444 EOE M/F/H/V Volume 26, No. 12 July 2014

ARKANSAS RICE INDUSTRY HOLDS LUNCHEON FOR LEGISLATURE

L-R: Marvin Baden, VP-Sales for Producers Rice Mill joins Producers Board of Directors members Jay Coker and Jerry Hoskyn (far right) in visiting with Rep. David Hillman(D-13).

The Arkansas rice industry hosted a rice luncheon for the Arkansas General Assembly on Wednesday, Feb. 27. Farm, industry and community leaders from across the state gathered to educate policy makers on the importance of rice to the Arkansas economy. Sponsors of the luncheon were Arkansas Rice Federation (Arkansas Rice Council, Arkansas Rice Producers' Group, Arkansas rice mills and merchants), Arkansas County Bank, AgHeritage Farm Credit Services, BancorpSouth, Producers Rice Mill and Riceland Foods.

Arkansas is the largest rice producing state in the U.S. The Arkansas rice industry produces approximately 26,000 jobs and provides $6 billion in economic output/activity annually.

THIRD ADVANCE MAILED Your board of directors approved a third advance on your 2012 rice crop that was mailed on March 20th. The following is a summary of the average third advance and the total advances to date: AVERAGE PER BUSHEL Regular (Eligible) Third Advances Seasonal Pools Advance To Date Long $0.65 $5.83 Medium $0.80 $5.85 Depending on milling yield, your advance in the eligible seasonal pools could vary slightly with the overall average. Additional advances will be made as more rice is milled and marketed.

RICE INDUSTRY LEADERS

SUPPORT CLARIFICATION OF SPCC REQUIREMENTS

Rep. Crawford (R-Ark.) led a bipartisan coalition of House members in reintroducing the Farmers Undertake Environmental Land Stewardship Act (FUELS) Act, H.R. 311. If passed, H.R. 311 would bring much needed clarity to the requirements of the Environmental Protection Agency's (EPA) Spill Prevention, Control, and Countermeasure (SPCC) rule. The legislation would modify EPA’s SPCC rule by alleviating the regulatory burden on farmers and ranchers. The FUELS Act passed the House in August 2012 without a single dissenting vote, but stalled in the Senate. On the Senate side, Sens. Mark Pryor (D-AR), John Boozman (R-AR), and Thad Cochran (R-MS), introduced a bill (S. 496) amending SPCC requirements for farms. This bill will exempt farmers from these regulations for aboveground oil storage tanks that have an aggregate storage capacity of less than 10,000 gallons. It will also allow farmers who are regulated and have less than 42,000 gallons of above ground storage capacity to self-certify their own plans. This will dramatically decrease costs by eliminating the need to hire a professional engineer.

SPRING FAMILY MEETINGS

CONCLUDE AT STUTTGART

L-R: Bud McCollum, Producers Board of Directors member, visits with Don and Celeste Daughtry of Stuttgart before the Spring Meeting. This year’s Spring Meetings concluded March 5th in Stuttgart with a large crowd at the Grand Prairie Center. Members enjoyed a presentation on the current fundamentals of the rice industry by Keith Glover. Thanks to everyone who attended a meeting.

INSERT SUPPLY AND DEMAND CHART HERE

ARKANSAS RICE INDUSTRY HOLDS LUNCHEON FOR LEGISLATURE

L-R: Marvin Baden, VP-Sales for Producers Rice Mill joins Producers Board of Directors members Jay Coker and Jerry Hoskyn (far right) in visiting with Rep. David Hillman(D-13).

The Arkansas rice industry hosted a rice luncheon for the Arkansas General Assembly on Wednesday, Feb. 27. Farm, industry and community leaders from across the state gathered to educate policy makers on the importance of rice to the Arkansas economy. Sponsors of the luncheon were Arkansas Rice Federation (Arkansas Rice Council, Arkansas Rice Producers' Group, Arkansas rice mills and merchants), Arkansas County Bank, AgHeritage Farm Credit Services, BancorpSouth, Producers Rice Mill and Riceland Foods.

Arkansas is the largest rice producing state in the U.S. The Arkansas rice industry produces approximately 26,000 jobs and provides $6 billion in economic output/activity annually.

THIRD ADVANCE MAILED Your board of directors approved a third advance on your 2012 rice crop that was mailed on March 20th. The following is a summary of the average third advance and the total advances to date: AVERAGE PER BUSHEL Regular (Eligible) Third Advances Seasonal Pools Advance To Date Long $0.65 $5.83 Medium $0.80 $5.85 Depending on milling yield, your advance in the eligible seasonal pools could vary slightly with the overall average. Additional advances will be made as more rice is milled and marketed.

RICE INDUSTRY LEADERS

SUPPORT CLARIFICATION OF SPCC REQUIREMENTS

Rep. Crawford (R-Ark.) led a bipartisan coalition of House members in reintroducing the Farmers Undertake Environmental Land Stewardship Act (FUELS) Act, H.R. 311. If passed, H.R. 311 would bring much needed clarity to the requirements of the Environmental Protection Agency's (EPA) Spill Prevention, Control, and Countermeasure (SPCC) rule. The legislation would modify EPA’s SPCC rule by alleviating the regulatory burden on farmers and ranchers. The FUELS Act passed the House in August 2012 without a single dissenting vote, but stalled in the Senate. On the Senate side, Sens. Mark Pryor (D-AR), John Boozman (R-AR), and Thad Cochran (R-MS), introduced a bill (S. 496) amending SPCC requirements for farms. This bill will exempt farmers from these regulations for aboveground oil storage tanks that have an aggregate storage capacity of less than 10,000 gallons. It will also allow farmers who are regulated and have less than 42,000 gallons of above ground storage capacity to self-certify their own plans. This will dramatically decrease costs by eliminating the need to hire a professional engineer.

SPRING FAMILY MEETINGS

CONCLUDE AT STUTTGART

L-R: Bud McCollum, Producers Board of Directors member, visits with Don and Celeste Daughtry of Stuttgart before the Spring Meeting. This year’s Spring Meetings concluded March 5th in Stuttgart with a large crowd at the Grand Prairie Center. Members enjoyed a presentation on the current fundamentals of the rice industry by Keith Glover. Thanks to everyone who attended a meeting.

INSERT SUPPLY AND DEMAND CHART HERE

TOTAL 2011-12 Feb. Mar.Beginning stocks 48.5 41.1 41.1Production 184.9 199.5 199.5Imports, 19.4 21.0 21.5 Supply, total 252.8 261.6 262.1Domestic & 110.1 125.0 125.0Exports, total 101.6 106.0 108.0 Rough 32.7 34.0 35.0 Milled (rough 68.9 72.0 73.0 Use, total 211.7 231.0 233.0Ending Stocks 41.1 30.6 29.1

LONG GRAINBeginning stocks 35.6 24.3 24.3Production 116.4 144.2 144.2 Supply, total 168.9 186.9 187.4Domestic & 77.9 94.0 94.0Exports 66.8 75.0 77.0 Use, total 144.7 169.0 171.0Ending Stocks 24.3 17.9 16.4

MEDIUM & SHORT GRAINBeginning stocks 10.1 14.7 14.7Production 68.6 55.3 55.3 Supply, total 81.7 72.5 72.5Domestic & 32.2 31.0 31.0Exports 34.8 31.0 31.0 Use, total 67.0 62.0 62.0Ending Stocks 14.7 10.5 10.5

Source: USDA

SUPPLY & DEMAND ESTIMATESU. S. Rice Supply & Use

(Rough Equiv. of Rough & Milled Rice in Million Cwts.)

2012/13 Projections

*Note these totals may not add due to rounding.

MARVIN “BUTCH” BADEN

RECEIVES RMA DISTINGUISHED

SERVICE AWARD

Keith Glover, Producers’ Pres. & CEO presents the RMA Distinguished Service Award to Baden at the RMA Convention in Lake Tahoe

On June 18th, the USA Rice Millers' Association (RMA) named Marvin "Butch" Baden of Producers Rice Mill the recipient of the RMA Distinguished Service Award, the association's highest honor. Baden began his service on the RMA Board in 1982 and served as Chairman in 1992. He has chaired the Convention Coordinating Committee since 1996. "Butch has given 56 years to the U.S. rice industry during which time he has sold, or been responsible for selling, more than 1.3 billion bushels of rough rice here and around the world," said Keith Glover, President and CEO of Producers Rice Mill who made the award announcement. Baden was caught off guard by the surprise presentation, but true to form, he recovered quickly, expressed his appreciation and told the crowd how lucky he considers himself to have spent his life working in an industry he truly loves. Baden began working in the rice industry at the age of 17 and held numerous positions. His wife of 52 years, Kaye, was on hand for the presentation. Baden has two sons and seven grandchildren, all of whom joined Baden in celebrating this important event.

2014 Calendar of Events July 30 MS Rice Field Day, Delta Research Ctr. Stoneville, MS August 1 Ark. Rice Field Day, Grand Prairie Center, Stuttgart,AR September National Rice Month November 6 Annual Membership Meeting, Stuttgart, AR

SUPPLY AND DEMAND

MARVIN “BUTCH” BADEN

RECEIVES RMA DISTINGUISHED

SERVICE AWARD

Keith Glover, Producers’ Pres. & CEO presents the RMA Distinguished Service Award to Baden at the RMA Convention in Lake Tahoe

On June 18th, the USA Rice Millers' Association (RMA) named Marvin "Butch" Baden of Producers Rice Mill the recipient of the RMA Distinguished Service Award, the association's highest honor. Baden began his service on the RMA Board in 1982 and served as Chairman in 1992. He has chaired the Convention Coordinating Committee since 1996. "Butch has given 56 years to the U.S. rice industry during which time he has sold, or been responsible for selling, more than 1.3 billion bushels of rough rice here and around the world," said Keith Glover, President and CEO of Producers Rice Mill who made the award announcement. Baden was caught off guard by the surprise presentation, but true to form, he recovered quickly, expressed his appreciation and told the crowd how lucky he considers himself to have spent his life working in an industry he truly loves. Baden began working in the rice industry at the age of 17 and held numerous positions. His wife of 52 years, Kaye, was on hand for the presentation. Baden has two sons and seven grandchildren, all of whom joined Baden in celebrating this important event.

2014 Calendar of Events July 30 MS Rice Field Day, Delta Research Ctr. Stoneville, MS August 1 Ark. Rice Field Day, Grand Prairie Center, Stuttgart,AR September National Rice Month November 6 Annual Membership Meeting, Stuttgart, AR

SUPPLY AND DEMAND

MARVIN “BUTCH” BADEN

RECEIVES RMA DISTINGUISHED

SERVICE AWARD

Keith Glover, Producers’ Pres. & CEO presents the RMA Distinguished Service Award

to Baden at the RMA Convention in Lake Tahoe On June 18th, the USA Rice Millers' Association (RMA) named Marvin "Butch" Baden of Producers Rice Mill the recipient of the RMA Distinguished Service Award, the association's highest honor. Baden began his service on the RMA Board in 1982 and served as Chairman in 1992. He has chaired the Convention Coordinating Committee since 1996. "Butch has given 56 years to the U.S. rice industry during which time he has sold, or been responsible for selling, more than 1.3 billion bushels of rough rice here and around the world," said Keith Glover, president and CEO of Producers Rice Mill who made the award announcement. Baden was caught off guard by the surprise presentation, but true to form, he recovered quickly, expressed his appreciation and told the crowd how lucky he considers himself to have spent his life working in an industry he truly loves. Baden began working in the rice industry at the age of 17 and held numerous positions. His wife of 52 years, Kaye, was on hand for the presentation. Baden has two sons and seven grandchildren, all of whom joined Baden in celebrating this important event.

2014 Calendar of Events July 30 MS Rice Field Day, Delta Research Ctr. Stoneville, MS August 1 Ark. Rice Field Day, Grand Prairie Center, Stuttgart, AR September National Rice Month November 6 Annual Membership Meeting, Stuttgart, AR

USE PREVIOUS RICE DEPOT DONATION FORM with these prices. 200 pounds $ 50.00 400 pounds $ 100.00 1,000 pounds $ 250.00 2,000 pounds $ 500.00 3,000 pounds $ 750.00 4,000 pounds $1,000.00 6,000 pounds $1,500.00 10,000 pounds $2,500.00

YOUR CONTINUED SUPPORT OF THE ARKANSAS RICE DEPOT IS NEEDED!!

Producers’ members have proudly supported the work of the Arkansas Rice Depot since its inception 32 years ago. The Rice Depot provides food for 428,000 people across the state through backpack programs for children, emergency assistance and food delivery to the elderly. Hunger never stops and the need for food never ends. A big “thank you” to all Producers’ members for their support of the Arkansas Rice Depot.

If you would like to help the Arkansas Rice Depot, just fill out the form below and return it to the Stuttgart main office. If you wish to contribute later, an authorization form will be included with your first advance. Cash donations are always welcome and can be made online (www.ricedepot.org) by clicking on the “Give Today” link, by mail to Arkansas Rice Depot, P.O. Box 34427, Little Rock, AR 72203, or by calling 501-565-8855.

SUPPLY AND DEMAND

TOTAL 2013-14 Est.

2014-15 Proj. June

2014-15 Proj. July

Beginning stocks 36.4 32.3 32.8Production 189.9 213.0 226.0Imports, 23.0 22.0 21.0 Supply, total 249.3 267.3 279.8Domestic & residual

123.0 128.0 133.0Exports, total 93.5 102.0 107.0 Rough 30.0 34.0 34.0 Milled (rough equiv.)

63.5 68.0 73.0 Use, total 216.5 230.0 240.0Ending Stocks 32.8 37.3 39.8LONG GRAINBeginning stocks 21.9 19.3 19.3Production 131.9 161.0 169.0 Supply, total 173.3 199.3 206.8Domestic & residual

91.0 101.0 103.0Exports 63.0 72.0 75.0 Use, total 154.0 173.0 178.0Ending Stocks 19.3 26.3 28.8MEDIUM & SHORT GRAINBeginning stocks 12.2 10.7 11.2Production 58.0 52.0 57.0 Supply, total 73.7 65.7 70.7Domestic & residual

32.0 27.0 30.0Exports 30.5 30.0 32.0 Use, total 62.5 57.0 62.0Ending Stocks 11.2 8.7 8.7

Source: USDA

SUPPLY & DEMAND ESTIMATESU. S. Rice Supply & Use

(Rough Equiv. of Rough & Milled Rice in Million Cwts.)

*Note these totals may not add due to rounding.

ARKANSAS RICE DEPOT DONATION FORMI authorize Producers Rice Mill, Inc., to donate the following quantities of brown rice to the Arkansas Rice Depot and charge my account accordingly:

Account Number: ______________________________ Account Name: _______________________________

Date: __________________________ Signature: _______________________________________

TOTAL 2013-14 Est.

2014-15 Proj. June

2014-15 Proj. July

Beginning stocks 36.4 32.3 32.8Production 189.9 213.0 226.0Imports, 23.0 22.0 21.0 Supply, total 249.3 267.3 279.8Domestic & residual

123.0 128.0 133.0Exports, total 93.5 102.0 107.0 Rough 30.0 34.0 34.0 Milled (rough equiv.)

63.5 68.0 73.0 Use, total 216.5 230.0 240.0Ending Stocks 32.8 37.3 39.8LONG GRAINBeginning stocks 21.9 19.3 19.3Production 131.9 161.0 169.0 Supply, total 173.3 199.3 206.8Domestic & residual

91.0 101.0 103.0Exports 63.0 72.0 75.0 Use, total 154.0 173.0 178.0Ending Stocks 19.3 26.3 28.8MEDIUM & SHORT GRAINBeginning stocks 12.2 10.7 11.2Production 58.0 52.0 57.0 Supply, total 73.7 65.7 70.7Domestic & residual

32.0 27.0 30.0Exports 30.5 30.0 32.0 Use, total 62.5 57.0 62.0Ending Stocks 11.2 8.7 8.7

Source: USDA

SUPPLY & DEMAND ESTIMATESU. S. Rice Supply & Use

(Rough Equiv. of Rough & Milled Rice in Million Cwts.)

*Note these totals may not add due to rounding.

________200 pounds valued at $ 48.00________400 pounds valued at $ 96.00________1,000 pounds valued at $240.00________2,000 pounds valued at $480.00

________3,000 pounds valued at $ 720.00________4,000 pounds valued at $ 960.00________6,000 pounds valued at $1,440.00________10,000 pounds valued at $2,400.00

125172 july newsletter.indd 1 7/22/14 4:00 PM

MANAGER’S MESSAGE In USDA’s March Planting Intentions report, Arkansas rice farmers indicated their 2014 rice acres would be up 41% over 2013 rice acres, while Mississippi rice farmers indicated their 2014 rice acres would be up 36%. With the Spring of 2014 being another cold, wet planting season, many in the U.S. rice industry wondered if Mid-South rice farmers would be able to plant the rice acres they indicated back in March. In this Manager’s Message, I will share with you our thoughts on USDA’s latest 2014 rice acres estimate. 2014 Planted Acreage Report: Based on USDA’s June 30th report, U.S. rice farmers ended up planting 170,000 more acres of rice in 2014 than they indicated back in March. Arkansas saw the largest increase since the March Planting Intentions report, being up 50,000 acres, followed by California (up 45,000 acres), Missouri (up 36,000 acres), and Louisiana (up 34,000 acres). In comparing 2014 rice acres with 2013, Arkansas has both the largest acreage and percent increase, with the state’s rice acres up a whopping 495,000 acres or 46%. At 52%, 2014 is the first time Arkansas rice acreage have represented more than half of the overall U.S. rice acres planted. Mississippi and Missouri represented the second largest increase in 2014 rice acres with each state up 36%. By grain class, long grain acres will be up 550,000 acres or 31%, with Arkansas’ long grain acreage making up 425,000 acres or 77% of the overall increase in U.S. long grain acres. U.S. medium and short grain acres will be up only 8,000 acres or 1%. Despite the very small difference in overall medium and short grain acreage, there were big swings in Arkansas medium/short grain acreage, up 70,000 acres or 58%, and California’s acreage, down 70,000 acres or 13%. Supply & Demand Projections: On July 11th, USDA released its first Supply and Demand projection for the 2014-15 marketing year to reflect the new rice acreage data. As expected, USDA raised its 2014 U.S. long grain production estimate to 169.0 million cwts., up 37.1 million or 28% compared to the 2013 U.S. long grain crop. If correct, the 2014 U.S. long grain production would be the largest U.S. long grain crop since the record 2010 crop. With the larger crop, USDA raised its projected ending U.S. long grain stocks for the 2014-15 marketing year to 28.8 million cwts., a 49% increase from the beginning of the marketing year. Overall, 2014 medium and short grain production was also raised from earlier projections to 57 million cwts. With the increase, USDA is currently projecting the U.S. medium/short production in 2014 will now only be 1 million cwts., smaller than in 2013. Market Implications: With the 2014 U.S. long grain crop projected to increase 28%, U.S. long grain prices will likely start the 2014-15 marketing year on the defensive. With domestic demand fairly consistent from year to year, this year’s significant increase in U.S. long grain production will likely have to be marketed in export markets. In order to attract new export demand, U.S. long grain prices will need to be more competitive with other export prices, especially with the export prices out of South America. In our August newsletter, I will have a more detailed market analysis. Sincerely, Keith Glover

Producers Rice Mill, Inc., P. O. Box 1248, Stuttgart, AR, 72160, Telephone: 870-673-4444

Use photo

2014 rice plantings

CLASS & 3/31/14 Actual ActualSTATE Intent 2014 2013 Diff %

Long GrainAR 1,350,000 1,380,000 955,000 425,000 44.5%CA 5,000 5,000 6,000 (1,000) -16.7%LA 395,000 430,000 396,000 34,000 8.6%MS 170,000 170,000 125,000 45,000 36.0%MO 175,000 210,000 157,000 53,000 33.8%TX 132,000 136,000 142,000 (6,000) -4.2%U. S. 2,227,000 2,331,000 1,781,000 550,000 30.9%Med & Short GrainAR 171,000 191,000 121,000 70,000 57.9%CA 445,000 490,000 560,000 (70,000) -12.5%LA 26,000 25,000 22,000 3,000 13.6%MO 5,000 6,000 2,000 4,000 200.0%TX 3,000 4,000 3,000 1,000 33.3%U. S. 650,000 716,000 708,000 8,000 1.1%ALLAR 1,521,000 1,571,000 1,076,000 495,000 46.0%CA 450,000 495,000 566,000 (71,000) -12.5%LA 421,000 455,000 418,000 37,000 8.9%MS 170,000 170,000 125,000 45,000 36.0%MO 180,000 216,000 159,000 57,000 35.8%TX 135,000 140,000 145,000 (5,000) -3.4%U. S. 2,877,000 3,047,000 2,489,000 558,000 22.4%Source: USDA

ACRES PLANTED (In thousand acres) 2014 RICE PLANTING INTENTIONS

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