USA Rice has developed an online tool to help rice farmers, millers, and merchants roughly calculate the U.S. Department of Agriculture's (USDA) market year average (MYA) price.
The monthly prices listed for each type of rice can still be adjusted by price reporters and the USDA through early October. The October Agricultural Prices Report published by USDA will list the long grain price that will determine what a producer's Price Loss Coverage (PLC) program 2015 payment will be. The final MYA prices will be posted in the January Agricultural Prices Report and will include the California medium-short grain price.
Earlier this month, USA Rice developed a rice PLC payment calculator available for farmers and lenders to estimate annual payments as part of their financial planning process.
USA Rice Vice President of Government Affairs Ben Mosely said, "our current estimates using preliminary prices which are subject to change, would provide farmers with about $2.12-$2.14 per cwt using the $14.00 per cwt PLC reference price, established by the 2014 Farm Bill. Our estimates fall closely in line with the September WASDE Report's Season Average Farm Price of $11.90 per cwt."
Mosely added, "while no payments have been issued for the 2014 crop, the Farm Bill's PLC and ARC programs should help farmers recoup some of their input costs. We have been assured by USDA that farmers in the South will receive their payments in November."
Members of the rice industry are encouraged to utilize the price and payment calculating tools to help estimate costs and see the value farm safety net programs will provide using last year's prices.
Contact: Peter Bachmann (703) 236-1475