SIGN-UP POLICY

The 2007 crop sign-ups are available to all members or farms that met their 2006 rice delivery commitment with PRODUCERS RICE MILL, INC. The number of rice acres a qualified member or farm can sign up on the 2007 rice crop is not limited.

PRODUCERS' members who did not grow any rice in 2006 or in recent years will be allowed to participate in PRODUCERS 2007 marketing programs. These members must have delivered rice to PRODUCERS the last time they grew rice.  

Failure to deliver: If a member fails to deliver the 2007 crop rice as originally signed up, that member will be ineligible to participate in PRODUCERS' marketing programs beginning in 2008 and thereafter.

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GENERAL PROVISIONS FOR BOTH SEASONAL & PRICING POOLS

GREEN RICE: All green rice from eligible farms must remain eligible for CCC loan at the time of delivery to PRODUCERS. Thus, all members who deliver green rice to PRODUCERS cannot have taken loan deficiency payment (LDP) prior to delivery. PRODUCERS will handle all loan and marketing loan transactions. All marketing loan benefits will be credited to either the eligible seasonal pool or added to the price for those in the pricing pool.  

DRY RICE: Freight will be paid by PRODUCERS on all dry rice committed by June 29, 2007. Dry rice received during harvest will depend on the availability of trucks and adequate storage space. Rice will be picked up on a first requested basis. Dry rice not delivered to a PRODUCERS' facility by December 31, 2007, may accrue daily storage based on a monthly rate of 3¢ per bushel beginning January 1, 2008. To be eligible for the on-farm storage, members must be willing to ship the on-farm rice at PRODUCERS' request. Seed rice and seed remnants are not eligible for the storage. The moisture on all dry rice received must be 13% or lower. If the moisture is between 13.1% and 13.5%, drying charges and shrinkage will be applied to the farmer's account. On rice received greater than 13.5% moisture, freight cost, drying charges, and shrinkage will be applied to the farmer's account. Upon a member's request, dry rice on the farm that is still eligible for CCC loan may be advanced at 90% of the measured bin weight once the green rice harvest is complete.  

GRADING: The final grade for weed seeds, red rice and smut will be determined at the dryer or storage facility. PRODUCERS will grade for peck damage. The final grade for kernel damage such as heat, stain, and peck damage, will be determined by our rough rice lab as part of the milling yield analysis.  

ELIGIBILITY FOR LOAN BENEFITS: To be eligible for the marketing loan program you must report your rice acreage annually to the Farm Service Agency (FSA). Please make sure the ID number used on your Producers' marketing agreement agrees with the number on your FSA-578 for the applicable farm. If there are any discrepancies with the FSA information or your farm is not certified, your rice at PRODUCERS is considered ineligible for government loan by FSA and will be placed in PRODUCERS' world price pool.

NO GMO OR AROMATIC RICE: PRODUCERS will not accept any genetically modified (GMO) or aromatic rice such as Jasmine, Basmati, or other varieties for the 2007-2008 marketing year.

SEASONAL POOLS – LONG AND MEDIUM GRAIN

REGULAR SEASONAL POOL: All rice eligible for the government marketing loan program and committed by June 29, 2007, will be marketed in the regular seasonal pool. Premium and value-added sales during 2007-2008 will be credited to this pool.

WORLD PRICE POOL: All ineligible rice or rice the farmer has received the marketing loan benefits before delivery to PRODUCERS, will be marketed in the world price pool. Advances will be based on the USDA announced world market price on the day the rice is considered delivered. If the world market price is higher than loan on the day the rice is considered delivered, advances will be based on loan value.

FIRST ADVANCE: The first advance on rice in the regular long and medium grain pools will be based on a percent of the government loan. The first advance for rice in the world price pool will be based on a percent of the lower of world market price or government loan. The actual first advance percentage will be set prior to harvest.

ACCOUNTING for the 2007-2008 seasonal pools will be on a patronage basis and all seasonal pool rice will be subject to PRODUCERS' annual capital deduction of 13 cents per bushel.

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PRICING POOL – LONG GRAIN ONLY

PARTICIPATION: Members can market 100% of their long grain crop delivered to PRODUCERS or a designated number of bushels in the pricing pool. Rice will be applied to the designated bushels in the pricing pool on a first delivered basis. Members will be allowed to assign their pricing contracts by farm number.

POOLING BASIS: The pricing program will be handled on a separate patronage pool basis. All quoted prices include PRODUCERS' annual per unit retain (capital deduction) of 13 cents per bushel. A patronage refund at the end of the marketing year could be possible. Once priced or booked, the rice will be matched against a current milled rice sale or hedged on the rice futures board. Thus, any final settlement will be based on gains in basis and operating efficiencies and not on any market appreciation.

PRICING: All pricing is based off the Chicago Board of Trade (CBOT) rough rice futures. All quotations are based on a #2 grade, 55/70 milling yield, the standard quality of the CBOT contract. For rice whose milling yields are not the standard yields (55/70), CBOT premiums and discounts will apply. The pricing pool will be open for all grades and milling yields. PRODUCERS' regular grade discounts will apply to grades below a #2.

Rice that is unpriced at the time of delivery will be advanced a percent of loan or world market price, depending on eligibility for loan. The advance rate will be set prior to harvest. Normal deductions such as drying charges and rice checkoff fees will be deducted from this advance.

Rice in the pricing pool must be priced by May 30, 2008 . Any rice not priced by May 30, 2008, will be priced on that date.

BASIS: PRODUCERS can fluctuate its basis at any time.

FORWARD PRICING: Forward pricing before harvest or delivery is available. All forward bookings must be in increments of 4,444 bushels and contingent on a CBOT trade. Rice will be applied against outstanding contracts on a first delivered basis. Member agrees to pay PRODUCERS any damages resulting from default.

HEDGED-TO-ARRIVE OPTION: With the forward pricing provision, a member may initially price the futures and then set the basis at a later date. The basis will be set prior to delivery or by the first notice day of the futures contract, whichever occurs first. If the basis has not been set and the rice has not been delivered by the first notice day, the futures component may be rolled to the next futures month at a fee of 2 cents per cwt., per roll. The basis must be set and the rice delivered no later than May 30, 2008 .

MARKETING LOAN: For rice delivered to PRODUCERS and still eligible for loan, any marketing loan benefits will be passed on to the member. PRODUCERS will handle all marketing loan transactions. Marketing loan will be established on the date the rice was priced. On forward contracts, the marketing loan will be established on the date the rice was considered delivered.

PRICE-LATER CHARGE: A price-later charge will be assessed beginning December 1, 2007, on all unpriced rice that has been delivered to one of PRODUCERS' facilities. The price-later charge will be 3 cents per bushel per month and will accrue at the beginning of each month. Rice forward contracted before delivery or before December 1 for January payment will not be assessed a price-later charge.

SEASONAL POOL OPTION: Members who sign up by June 29, 2007, can elect to move their unpriced rice in the pricing pool into a seasonal pool on or before November 30, 2007. PRODUCERS reserves the right to place the rice into a second seasonal or world price pool if the market has dropped significantly.

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