MANAGER'S MESSAGE
During the week of February 22, the USA Rice Federation (USA Rice) will hold its annual Government Affairs Conference in Washington, DC. The conference will be a great opportunity to discuss important rice issues with Congressmen, Senators and USDA officials. In this Manager's Message I will share with you a few of the many important issues and priorities affecting the U.S. rice industry that will be discussed with both elected and government officials.
Protect Agriculture Budget & Appropriations – Once again, President Obama is proposing dramatic cuts to the budget and safety net of the 2008 Farm Bill. In his 2011 federal budget, the President is proposing a 25% cut in the payment limit for direct payments from $40,000 per person per year to only $30,000 per year. The President also proposes lowering the adjusted gross income (AGI) limitations to determine eligibility for farm program benefits. If passed, non-farm AGI would be reduced from $500,000 to $250,000 and the farm AGI would be lowered from $750,000 to $500,000.
After a hard-fought battle that resulted in Congress enacting historic reforms in the 2008 Farm Bill with regard to program eligibility, payment limitations and transparency of benefits, it is frustrating we must once again fight to preserve the current farm safety net. Fortunately, when the President proposed similar cuts to last year's federal budget, they were quickly killed by leaders of both parties. We believe this year's proposed cuts will have a similar fate; however, we cannot take anything for granted.
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| L-R: Ray Vester, Gary Sebree, Senator Lincoln, Jerry Hoskyn, Keith Glover and Marvin Baden |
Agriculture Disaster Relief – Last November 20, Senator Blanche Lincoln of Arkansas joined Senators Thad Cochran and Roger Wicker of Mississippi to introduce an Agriculture Disaster Relief Package to provide assistance for farmers affected by heavy rain, floods and other weather-related disasters during the 2009 growing season. The approximate $1.5 billion disaster package would primarily utilize the direct-payment mechanism to distribute the assistance to farmers impacted by the weather-related disasters. USA Rice is urging Congress to pass the Agriculture Disaster Relief Legislation.
Expand Agricultural Trade – Approximately one-half of the U.S. rice crop is exported to markets around the world. Therefore, the economic health of rice farmers and the U.S. rice industry is directly tied to the maintenance and expanding access to foreign markets.
(1) Cuba typically imports between 600,000 – 700,000 metric tons of rice each year. Cuba was the largest U.S. export market 50 years ago until a trade embargo was imposed by the United States. USA Rice strongly supports efforts in the House and Senate to remove statutory and regulatory restrictions on direct trade of agricultural products with Cuba.
(2) U.S. – Columbia Free Trade Agreement, if passed, would provide immediate duty-free access for 79,000 tons of U.S. rice that would increase over time until free trade is achieved in 19 years.
Environmental Challenges to Agriculture – The U.S. rice industry is facing legislative, regulatory and judicial challenges that could jeopardize the competitiveness of U.S. rice in a world market. The U.S. rice industry opposes the climate change (“Cap and Trade”) legislation that is currently being considered in Congress. According to economic analyses, this legislation would result in significantly higher input costs in the range of $70 - $150 per acre for rice. USA Rice is also opposed to continuing efforts by the Environmental Protection Agency (EPA) to regulate greenhouse gas emissions under the Clean Air Act that would lead to costly regulation and higher production costs for rice.
Estate Tax Reform – USA Rice supports the Family Farm Preservation Estate Tax Act, H.R. 3524 that would exempt farm and ranch assets from estate taxes as long as the property remains as a family agricultural operation. The enactment of this bill would strengthen U.S. agriculture by providing certainty in estate planning for farmers who pass their operations to the next generation.
2012 Farm Bill Development – The USA Rice Federation is beginning discussions on the farm policy proposal to strengthen and enhance the current safety net programs in the next farm bill. Several general principles are being considered as important to the viability and future of the U.S. rice industry.
1. The farm safety net must be strengthened for rice producers by the 2012 Farm Bill.
2. The Direct Payment, or any variant, must confer a stronger safety net for rice producers.
3. The Countercyclical Program, or any variant, must better reflect current market conditions for rice.
4. The 2012 Farm Bill must create long-term certainty regarding payment limitations, adjusted gross income requirements and other eligibility criteria.
5. There must be no further reduction in pay limits or adjusted gross income requirements or further restrictions on eligibility relative to the current mix of safety net components or the equivalents under any variant.
6. There must be no further reduction in funding levels for the farm safety net or any reduction in that safety net funding specific to rice producers.
As you can see, there still remains many issues the U. S. rice industry must monitor on a daily basis. We are very fortunate to have the USA Rice Federation to oversee all developments in Washington, DC that could impact U.S. rice farmers and then fight on the behalf of the U.S. rice farmers and the industry as a whole.
Sincerely, Keith Glover
President & CEO
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The Obama administration has unveiled plans to improve children's nutrition, including creating healthier school meals. The campaign plans to mobilize public and private resources to combat the epidemic of childhood obesity. 
