Government
to buy 77,000 tons of surplus rice
Updated: 2015-04-24 09:14:55 KST
The Korean government says it will purchase an
additional 77-thousand tons of surplus rice in an attempt to prop up falling
prices.Every year the government purchases rice that exceeds the nation's
market demand of four-million tons.Last year, the government had estimated a
yield of roughly four.one-eight-million tons, but the actual harvest topped
that projection by 60-thousand tons.Korean farmers had asked the government to
purchase the excess rice,plus an additional 17-thousand tons that had been
stockpiled by local governments.
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Off-season rice farming areas hit 20-year low
Off-season rice farming areas
hit 20-year low
Japan Farmers
Cultivate Rice’s Mystique as Barrier to Deal
4:00 AM PKT ,April
24, 2015
A farmer carries harvested rice ready to dry in a paddy field in
Fujinomiya, Shizuoka Prefecture, Japan. Photographer: Tomohiro Ohsumi/Bloomberg
A powerful lobby stands in the way of two of the world’s biggest
economies completing a trade deal: Japanese rice farmers.Rice is the
island-nation’s staple grain and a powerful symbol of self-sufficiency. It is
also among the thorniest issues holding up an agreement the two nations hope to
unveil when Prime Minister Shinzo Abe and President Barack Obama meet in
Washington next week.“Rice is a social and political force. There is nothing
quite like it in the U.S.,” said Tom Slayton, a former senior rice trade
analyst at the U.S. Department of Agriculture who implemented an
earlier U.S.-Japan rice agreement in the 1980s. “The Japanese
are protecting a dinosaur, but it’s a dinosaur with a lot of clout.
”Negotiators have been working for months on a deal that could
become a part of a global deal being hammered out among 12 Pacific countries.
The so-called Trans-Pacific Partnership would link economies making up 40
percent of the world’s gross domestic product and strengthen U.S. alliances in
Asia, key trade and foreign policy goals for Obama.If the U.S., the world’s
biggest economy, and Japan, the third-biggest, can strike a bilateral deal, it
would help pave the way for the larger accord.Autos and agriculture have become
the final snags. Japan wants the U.S. to eliminate a U.S. import tariff that was put in place to protect
an industry that supports 900,000 manufacturing jobs. U.S. farm groups want
Japanese trade restrictions lifted - - including for rice -- further opening a
market that’s already the biggest U.S. buyer of beef and pork.
Large Market
The U.S. was Japan’s largest
export market and second-biggest source of imports in 2013, according to the
most recent government data. Last year, the U.S. sold $67 billion of goods to
Japan and bought $133.9 billion worth.The U.S. is the world’s fifth-biggest
exporter of rice, trailing Thailand, India, Vietnam and Pakistan. Japan, where
the grain has been culturally and economically important for millennia, imports
almost none.“The Japanese have always been very, very tough negotiators on agriculture
issues. We’ve made progress, but rice is one of the fences that are still up,”
said John Block, who served as U.S. Agriculture Secretary under President
Ronald Reagan.Hiroshi Oe, Japan’s TPP ambassador, said rice is considered a
politically sensitive product that must be protected, along with other grains,
beef, pork, dairy and sugar crops. Japanese economic minister, Akira Amari,
said Wednesday that rice is “100 times” more important to Japan than the U.S.
‘Continued
Negotiations’
Getting Japan to open on rice
requires “continued negotiations,” U.S. Agriculture Secretary Tom Vilsack said
on Tuesday, declining to offer any specifics.Part of Japan’s hesitancy to
change its rice policy comes from the lobbying power of its farmers. The
nation’s union of farmer cooperatives, JA-Zenchu, has enjoyed special status
since shortly after World War II, growing from an organization that fended off
famine to a politically connected conglomerate that distributes farm supplies,
sells agricultural products and dominates rural lending.With nearly 10 million
members, its influence in the ruling Liberal Democratic party has long kept
Japanese farmers protected from the consolidation, displacement -- and
efficiency -- of globalization. That’s created a domestic market in which
Japanese rice reigns supreme. Imports, begrudgingly allowed in a quota system
agreed to under the World Trade Organization, remain unsold and unwanted.
The Pacific trade accord might change that.
Boost Buying
Japan may agree to boost purchases of U.S. rice by as much as
100,000 metric tons a year while leaving the tariff-quota system in place,
according to Masayoshi Honma, agricultural and resource economics professor at
the University of Tokyo. Last year Japan bought 288,471 tons of rice from the
U.S., worth $272 million, according to U.S. trade statistics.“Japan is poised
to increase rice imports, which is different from freeing up the market
entirely,” said Masaki Kuwahara, economist at Nomura Securities Co. in Tokyo.
“I don’t expect the U.S. and Japan to sacrifice TPP deal because of their
disagreement over rice imports. Both governments basically agree that Japan
must increase rice imports from the U.S. for the deal.”Still, Japan’s rice
market isn’t growing. The agriculture ministry forecasts a 1 percent decline in
consumption to 7.8 million tons in the year to June 30.
‘Unnecessary
Concessions’
Falling consumption, the result
of economic growth and diversifying diets over the past five decades, means
imports don’t need much of a boost, Japan Agriculture Minister Yoshimasa
Hayashi said on Monday. A deal won’t happen just because Abe is coming to
Washington, he said.“We won’t make unnecessary concessions just to make it to
various events such as the top-level meeting,” Hayashi, 54, said. “What matters
is content.”U.S. rice producers say Japan’s offer is insufficient and want “a
significant improvement in the quantity and quality of access” to the Japanese
market, said Michael Klein, a spokesman for the Arlington, Virginia-based USA
Rice Federation.
“What is apparently being offered by the third
largest economy in the world is far beneath the ambition of the TPP,” he
said.Japanese farmers have pressured the government to reject an agreement,
with JA-Zenchu organizing rallies against a deal across the country. The group
has become a leader among Japan’s globalization skeptics, said Koichi Nakano,
professor of politics at Sophia University in Tokyo.
Weakening Grip
Still, signs are already evident
that rice’s grip is weakening as Abe pushes for structural reform in Japan’s
economy.The Liberal Democratic Party in February announced plans to revise the
nation’s agricultural cooperative law to deprive it of the ability to supervise
and audit local farming groups, a move designed to dilute JA-Zenchu’s power and
cut the fees it collects from members.The government also has eased curbs on
corporate farm ownership and created land banks to merge small holdings into
large tracts, a way to wring inefficiencies out of a system still populated by
aging farmers tending small plots of land. The nation has set a goal of
doubling food exports by 2020, with beef exports surging fivefold.
Surmountable
Issue
Akira Banzai, chairman of
JA-Zenchu, earlier this month resigned, saying reforms would be needed
under a new chairman. Japan has already given some ground on TPP, agreeing to
lower beef and pork import tariffs, products for which Japan is already the
biggest importer of U.S. goods.In the end, the stumbling block is surmountable
amid the emotion enveloping the issue, said Jeff Kingston, director of the
Asian Studies program at Temple University’s Tokyo campus.
“The Japanese public is easily
aroused over rice because it is intrinsic to national identity, but figuring
out a mechanism that would crack open the market a bit more is doable,” he
said. “There will be a lot of grandstanding on this issue, but it is too
marginal to scupper a deal that both sides want as much for geopolitical
reasons as for economic benefits.”
CME Group revises daily price limits for grains starting May 1
CHICAGO, APRIL 23
(Reuters) - Daily price limits
for Chicago Board of Trade corn and wheat futures will rise starting in May,
while soybean limits will not change following a semi-annual review, the CME
Group Inc, parent of the exchange, said on Thursday.Under exchange rules, the
CBOT resets daily limits for grains and oilseeds in May and November of each
year, based on a percentage of the average settlement price of benchmark
contracts during a roughly nine-week observation period.The new limits will go
into effect on Thursday, April 30, for May 1 trading.For corn, daily limit will
move to 30 cents per bushel from the current 25 cents.
The limit for CBOT wheat will
rise to 40 cents from 35 cents, and the limit for K.C. hard red winter wheat
will stay at 40 cents.For soybeans, the daily limit will remain at 70 cents per
bushel.For soymeal, the limit will stay at $25 per short ton, while the limit
for soyoil will fall to 2 cents per lb from the current 2.5 cents.The limit on
rough rice futures will decline to 75 cents per hundredweight from 90 cents.
The limit for oats will fall to 20 cents per bushel from 25 cents.Limits for
all grain futures can be expanded in the session following a limit-up or
limit-down settlement.Daily limits are lifted for the current month contract on
or after the second business day preceding the first day of the delivery
month.The CBOT eliminated price limits for all grain and oilseed options
contracts in 2014. (Reporting by Julie Ingwersen. Editing by Andre Grenon)
http://www.reuters.com/article/2015/04/23/markets-cbot-grains-limits-idUSL1N0XK3TP20150423
Local scientists help safeguard
rice production
DEPARTMENT of Agriculture and
Food WA researchers have developed a forecasting model and disease loss
chart which could assist overseas rice growers combat a potentially devastating
fungal disease.
Rice false smut disease (RFSD) is prevalent in the majority of
rice growing areas on the Indian sub-continent, as well as Asia and the
US. As part of a PhD project with the Bangladesh Rice Research
Institute the researchers recorded smut balls or galls on the
panicles of the regenerated tillers (otherwise known as ratoons) in the
harvested hills that were previously infected by the disease.The research also
recorded the natural distribution of the disease across the fields, hill by
hill in Bangladesh, and associated yield losses.
DAFWA scientists Moin Salam and Bill MacLeod used
this knowledge to develop the yield loss chart and forecasting forecasting
model to assist rice growers to implement farming practises to minimise the
impact of RFSD.“Although RFSD was believed to be an indication of a bumper
year, it can cause yield losses of up to 75 per cent, as well as a dark taint
for which grain can be discounted,” Mr MacLeod says.“Many of the popular rice
varieties in Bangladesh can have RFSD and fungicides are not particularly
effective. This research will assist rice growers to take action to reduce the
proliferation of RFSD spores.”
India Develops New Protein-Rich
Rice Variety
Apr
24, 2015
The Central Rice Research Institute (CRRI) has developed a protein-rich
rice variety, which also high-yielding as well as tolerant to certain diseases,
according to local sources.The Director of the CRRI told local sources that the
new variety has 10.5% protein content, which is about 3% higher than that found
in normal varieties. He noted that the new
variety has been developed by crossing a protein-rich germplasm with a
high-yielding rice variety called "Naveen". He added that the
scientists are planning to increase the protein content as well as yield of the
new variety by cross breeding it with high-yielding varieties.Presently, the
new variety yields about 5.5 tons per hectare and is well-suited to grow in the
Indian eastern states, said the CRRI Director.
Source with thanks: ORYZA.com
Rice of Kashmir
Dr. G A Parray
Before the introduction and popularization of China varieties, many
indigenous landraces including Mushkbuduj were grown on large scale across
Kashmir Himalayas. More than 100 landraces have been documented from Kashmir
valley, however, majority of them got fast replaced from fields by the high
yielding varieties and were pushed only to some specific pockets of Valley,
where they are being grown by a few households. Great genetic erosions have
occurred since last five to six decades during which major proportion of local
rice biodiversity was lost.
The reasons attributed to
the loss of heritage rice of Kashmir are their low yielding potential,
susceptibility to biotic and abiotic stresses particularly to paddy blast and
less share of benefits to the growers because of unscrupulous activities of
brokers (milling and marketing of the product). In the backdrop of these facts
Mushkbuduj revival programme was undertaken in 2007 by Khudwani Centre of
SKUAST-Kashmir with the objective to conserve local biodiversity through
utilization for socio-economic development of rice growers under Vice
Chancellor Dr. Tej Pratap and Director Research Dr. Shafiq A Wani.The demand
for original Mushkbuduj was felt from different sections of the society.
SKUAST-Kashmir developed the purified version of Mushkbuduj and devised an
integrated nutrient and disease management modules through rigorous
experimentation for six long years at Khudwani Centre.During Kharif 2011, the
performance of purified version against the older version was demonstrated in
the farmer’s field in the Sagam village of district Anantnag.
A popular niche belts of
local heritage rice of Kashmir. Simultaneously, the seed multiplication
programme was undertaken in the farmers’ field in the same season in compact
blocks by providing them pure seed produced at the Khudwani Centre. The year
2013, proved a success story during which an area of 50 ha in five adjoining
villages was brought under Mushkbuduj and about 1500q of seeds were produced.
This programme was also highly applauded by Governor N N Vohra during 3rd
Agriculture Science Congress organized by SKUAST-K.In this regard
SKUAST-Kashmir invited market entrepreneurs and millers for creating smooth and
sustainable market facility to safeguard interests of farmers and other stake
holders.
The programme has been
proposed to extend and to bring other niche belts and equivalent ecologies of
Kashmir valley under aromatic rice cultivation. A Jammu based rice exporter has
also now entered into the procurement, milling and trading of branded
Mushkbuduj.During 2014, 4000-5000q seeds of aromatic rice were produced in the
village Sagam, although, it was an unfavorable year for rice crop owing to
floods and cold stress at critical stage of crop growth. The Jammu based rice
exporter again lifted the major portion of the harvest and provided handsome
cash to farmers at their threshing floor. Presently, there is surplus stock
available in the market and people can have the taste of the heritage rice of
Kashmir valley.
Mushkbuduj which few years back was diminishing at an alarming rate
is now available in the market in its original form. The areas that produce
Mushkbuduj, is expected to surpass 300 ha in Kharif 2015. This special rice
variety cannot be grown everywhere as it needs specific agro-ecology and
peculiar climatic conditions and furthermore needs expertise in
production/protection technology and availability of good quality seed from a
reliable source. As against Rs. 2500.00/qtl, the price for normal rice of
Kashmir, a farmer gets eight times more for Mushkbuduj.
Despite strict requirements, we can grow Mushkbuduj on an area of
around 5000 ha and its cultivation could prove positive on socio-economic
conditions of rice growers. In addition to Mushkbuduj other aromatic landraces
like Kamad is also in revival mode and is available in the market.The programme
was successful because of the fact that entire local biodiversity is being
maintained by SKUAST-K at its Khudwani Centre, where both indigenous and exotic
germ plasma numbering more than 500 are being conserved, maintained and further
utilized through concerted breeding efforts.Author is Associate Director
Research of Mountain Research Centre for Field Crops at SKUAST Kashmir.
Camagüey Province Fine-tunes
Details ahead of Upcoming Rice Harvest
Rice growers have had to face a tremendous challenge during this harvest owing to insufficient supply of water, because the reservoirs that should provide water to their fields have only retained up to 10 percent of their capacities. Camagüey rice growers have the commitment to sow up to October nearly 21,000 hectares, basically on lands owned by private farmers who are responsible for the 66 percent of this program in this province. (Raysa Mestril Gutiérrez / Radio Cadena Agramonte)
CRRI to focus on high-yielding
varieties
CUTTACK: The
Central Rice Research Institute (CRRI), which celebrated its 69th foundation
day here on Thursday, has decided to focus on developing next-generation rice
varieties."Our priority is to develop rice varieties, which can grow
quickly and produce up to 10 to 12 tonne a hectare. We will have to make
agriculture profitable for our farmers," said director of the institute
Trilochan Mohapatra.Currently, any normal rice variety yields 5 to 5.5 tonne a
hectare and matures between 130 and 150 days.Scientists claimed that they are
working on high-yielding seeds for flood-prone and saline areas.
"Against the backdrop of climatic changes
and shrinking paddy fields, we have to develop new varieties and
techniques," Mohapatra said.With improved understanding of the genetic
basis and physiological mechanism and by crossing the high-yield varieties with
pest-resistance varieties, the premier rice research institute aims to achieve
this milestone, he added.Commenting on the recent damaged to crops due to
unseasonal rain, a senior scientist said, "Had the crop matured early, the
farmers would not have suffered losses," said a senior scientist. The
premier rice research institute has so far developed 115 varieties of rice.
Local
scientists help safeguard rice production
Friday, 24 April 2015
DEPARTMENT of Agriculture and Food
WA researchers have developed a forecasting model and disease loss chart
which could assist overseas rice growers combat a potentially devastating
fungal disease.
Rice false smut disease (RFSD) is
prevalent in the majority of rice growing areas on the Indian sub-continent, as
well as Asia and the US. As part of a PhD project with the Bangladesh Rice
Research Institute the researchers recorded smut balls or galls on the
panicles of the regenerated tillers (otherwise known as ratoons) in the
harvested hills that were previously infected by the disease.The research also
recorded the natural distribution of the disease across the fields, hill by
hill in Bangladesh, and associated yield losses.
DAFWA scientists Moin Salam and
Bill MacLeod used this knowledge to develop the yield loss chart and
forecasting forecasting model to assist rice growers to implement farming
practises to minimise the impact of RFSD.“Although RFSD was believed to be an
indication of a bumper year, it can cause yield losses of up to 75 per cent, as
well as a dark taint for which grain can be discounted,” Mr MacLeod says.“Many
of the popular rice varieties in Bangladesh can have RFSD and fungicides are
not particularly effective. This research will assist rice growers to take
action to reduce the proliferation of RFSD spores.”
Last modified on Friday, 24 April 2015 12:22
Cuttack research institute develops protein-rich
rice
CUTTACK: The Central Rice Research Institute (CRRI) has
developed a variety of rice, which is rich in protein. It has been cleared by
the Variety Identification Committee functioning under the ministry of
agriculture, but is yet to get a name. "We will release the variety for
cultivation within two months. It will not only ensure better returns to
farmers but also be beneficial to them," said director of CRRI Trilochan
Mohapatra.
He said the variety is one of the major achievements for CRRI, which celebrated its 69th Foundation Day on Thursday. The rice variety has over 10.5% protein content, which is 3% more than what is found in any popular variety. It has been developed by crossing a protein-rich germplasm with a high-yielding rice variety called Naveen. "Our scientists have worked hard for the last two years to develop the variety," said Mohapatra.
He said the variety is one of the major achievements for CRRI, which celebrated its 69th Foundation Day on Thursday. The rice variety has over 10.5% protein content, which is 3% more than what is found in any popular variety. It has been developed by crossing a protein-rich germplasm with a high-yielding rice variety called Naveen. "Our scientists have worked hard for the last two years to develop the variety," said Mohapatra.
Scientists have plans to gradually increase the protein
content in rice by cross breeding it with more high-yielding varieties. They
said the major problem with protein-rich rice varieties is that their yield is
quite low compared to other varieties. Hence, farmers are not inclined to
cultivate it, they added. The new variety ensures better yield and is tolerant
to some diseases. "The variety yields over 5.5 tonne a hectare in
irrigated ecosystem and is best suited for eastern region of the country,"
said the director.The institute also has plans to carry out
awareness drive to make the rice variety popular among farmers. Naveen is quite
popular among farmers in the eastern zone, so officers are hopeful that there
would be no major problem in convincing farmers to grow its protein-rich
version. With this, the CRRI has so far developed 115 varieties of rice.
Food ministry finally calls for rice import duty
12:00
AM, April 24, 2015 / LAST MODIFIED: 12:46 AM, April 24, 2015
The food ministry has at last asked
the National Board of Revenue to slap duty on rice imports in a last ditch move
to arrest the downward spiral of prices of the grain and prevent farmers from
racking up unsustainable losses.Millers and analysts termed the initiative to
be 'too late' as the harvest of boro paddy has already begun and the grain is
trading at Tk 100 per maund (40 kilogram) below last year's prices.The rice
prices are also lower than those that prevailed at this time last year,
according to Trading Corporation of Bangladesh.The government should have
imposed the duty much earlier as many farmers and millers have already incurred
losses for rising imports from India, said Bappi Saha, a rice miller from
Netrokona district.
Farmers get as low as Tk 450 for
each maund of BRRI Dhan 28, the most popular rice variety during the boro
season. The lowest price of the same variety was Tk 550 per maund during the
harvesting period last year, he said.The present price of paddy is much below
the government estimate of farmers' production cost of Tk 20 each kilogram
during the current boro season.“The demand for paddy remains lukewarm among
millers. Because of that, we are suffering from losses. We cannot clear our
stocks for the imports.”Saha said the farmers will be unable to recover their
investment unless the government takes steps immediately.
Acknowledging the downward trend of
rice prices owing to imports, the food ministry finally sought the NBR's help
yesterday -- a move that comes four months after the parliamentary standing
committee on the food ministry advised for discouraging imports.Between July 1
last year and April 21 this year, rice imports stood at 12.91 lakh tonnes,
which is more than three times the total imports last fiscal year, according to
food ministry data. In fiscal 2013-14, 3.74 lakh tonnes of rice were
imported.Earlier, some millers and importers said the zero duty buoyed rice
imports. The imported rice traded in the domestic market for household
consumption has affected farmers and millers, they added.
But the government continued to
ignore the concerns of millers and farmers, with some top government
functionaries such as Food Minister Md Qamrul Islam maintaining that
low-quality rice was being imported for 'cattle feed'.Some aromatic rice was
also imported but the amount of import was not so high compared to domestic
production and consumption, Islam told The Daily Star last month.A month later,
the food ministry in its letter said huge quantities of rice are being imported
from India, causing a downward trend in rice prices on the domestic market.
The letter, citing the government's
boro rice procurement of 11 lakh tonnes during the current harvesting season,
said the aim of the domestic purchase was to ensure fair prices of cereal for
farmers and keep the market prices of grains stable.The ministry said the
prices of boro paddy usually fall due to increased supply after harvesting. So,
the government typically purchases rice to rein in the price fall and ensure
fair prices for growers.“It will be difficult to ensure fair prices for
producers if the massive rice imports continue,” said the ministry in the
letter. Subsequently, it sought 'necessary measures' from the NBR to impose
duty on rice imports.Apart from imports, domestic production also rose this
fiscal year.
Farmers bagged around 1.32 crore
tonnes of aman rice in the immediate harvest, up 1.28 percent year-on-year. Aus
output also edged up slightly after record boro production last year, according
to Bangladesh Bureau of Statistics.M Asaduzzaman, a professorial fellow of
Bangladesh Institute of Development Studies, said the government should have
imposed duty on rice imports in February, such that the farmers got fair
prices.
“It is too late. This means nothing
now. The damage has already been done. The growers would have taken better care
of their crops if the duty was slapped then,” he said.However, Nirod Boron
Saha, president of rice and paddy stockists' and wholesalers' association in
Naogaon, wants the government to act on the decision right away.The duty should
be imposed within a week, as the boro harvest is yet to start in full swing in
the northwest, one of the main rice producing regions, he said.
http://www.thedailystar.net/business/food-ministry-finally-calls-rice-import-duty-78953
Rice Millers to Seek Uniform
Price
By
Published: 24th April 2015 06:01 AM
Last Updated: 24th April 2015 06:01 AM
VIJAYAWADA: Rice millers from across the country, at their
one-day conference to be held here on April 25, will seek a uniform price to be
paid by the government for custom milling of rice given to them after procuring
it from farmers.Speaking to newsmen here Thursday, AP Rice Millers Association
Gummadi Venkateswara Rao, said the Centre was paying different prices in
different states for custom milling. Though the rice millers were not against
the government taking over procurement of paddy from farmers, they should give
it to millers for custom milling for an attractive price, he said. In AP, the
price paid by the government for custom milling was Rs 15 per tonne while it is
Rs 85 per tonne in Odisha and Rs 30 in Telangana, he said.
Sugar, rice farmers demand inclusion in TPP deal
Date
April 25, 2015 - 12:15AM
Cane growers and rice farmers will not accept being left out of TPP
trade talks. Photo: Peter Braig
Crucial TPP trade pact in 'grabbing distance'
TPP pill difficult to swallow for pharmaceuticals
No new penalties for Australian internet pirates under TPP
After being left out in recent trade deals, Australia's sugar and
rice industries are demanding the Abbott government does not sell them short
again.The broad-based and highly secretive TPP talks, which include 12
countries that account for almost one-third of Australia's total trade and 38
per cent of world GDP, are in a final round of negotiations in Washington.Brett
Finlay, president of farm lobby the National Farmers' Federation, said that all
agricultural commodities need to get better market access."Australian
agriculture exports approximately two-thirds of what we produce," he said.
"Improved market access is critical to the entire agricultural
sector and we have been advocating strongly to government for good outcomes
across the board. We know it is difficult to get everything included, however,
that's the starting point for us."Canegrowers Queensland chairman Paul
Schembri said that the sugar industry, which was left out of the 2004 free-trade
agreement with the United States, also had poor outcomes in the government's
free-trade deals with China and Japan."We are playing for keeps. It is TPP
or bust for us. We are an export-focused industry with more than 80 per cent of
our 4.5 million tonnes of sugar exported every year," he said.
Sector visits Washington to lobby
"We are sick and tired of being the bridesmaid and being
thrown off the table at the eleventh hour," Mr Schembri said.The sugar
industry has just sent Dominic Nolan, the CEO of the Australian Sugar Milling
Council, and Warren Males, Canegrowers' policy manager, to Washington to lobby
the government.Australia's cane growers desperately want better access to the
highly protected US and Japanese markets.Ricegrowers Association executive
director Dean Logan said the industry has repeatedly been disappointed in past
negotiations."We support our government … but we don't want any special
deals or carve-outs. We hope the government flies the flag for Australian rice
growers," he said."Rice has got to be there. They have to go in to
bat for rice. We have missed out too many times."Australia has the
capacity to produce up to 1 million tonnes of rice a year and exports 80 per
cent of its rice in a non-drought year to 60 countries.The NFF's Mr Finlay said
it is critical that Australian farmer quality, safety and traceability is not
compromised by product aggregation or other changes to rules of origin.
http://www.smh.com.au/business/world-business/sugar-rice-farmers-demand-inclusion-in-tpp-deal-20150424-1msksi.html
NACC accuses former ministers of fabricating G2G rice scheme
KRIS BHROMSUTHI
THE NATION April 24, 2015 1:00 am
THE NATION April 24, 2015 1:00 am
Claims of rice stockpiles being sold through
government-to-government (G2G) scheme by the Yingluck Shinawatra administration
were "total lies", National Anti-Corruption Commission (NACC) member
Vicha Mahakhun told members of the National Legislative Assembly (NLA)
yesterday.The scheme, he said, played a key role in "one of the most
scandalous corruption cases in Thai history". However, former commerce
minister Boonsong Teriyapirom said the allegations were part of a political
game by the NACC, claiming the commission had chosen to single out and
annihilate a political group by using "double standards". He also
accused the NACC of rushing the case through without taking into account
important witnesses and evidence, which led to false conclusions.
Vicha also asked why the companies Kwang-Tung Stationary and
Hai-Narn Grain and Oil Industrial Trading - who the Pheu Thai-led government
claimed were representatives of the Chinese government -sold the rice back to
Thai local distributors. He backed this claim by saying local firms
Nakorn-Luang Ka-Kao and Thai-Fah 2551 had both come forward to say they bought
rice from the Chinese companies. He also said documents issued by the Foreign
Trade Department recording the so-called sale to China only accounted for a
single ex-warehouse transaction. Vicha said the deal was in fact with North
Korea and the transaction had to be cancelled because no payment was ever made.
"There was never any G2G deal because the rice was sold at
less than market price and then redistributed in the country. This created an
oversupply, pushing the price even lower," Vicha pointed out. The NACC
member also accused the officials of doing nothing to prevent corruption or
making any effort to organise fair bidding. "You have caused immeasurable
damage to the country. You cannot deny responsibility because you had direct
power in overseeing the G2G affair. If you detected any error, you should have
fixed it. In reality, though, you did the opposite by committing [corruption],
hiding and denying the corruption. You have severely violated the official code
of ethics," he concluded.
'Double standards'
Boonsong, however, denied all the charges and even criticised the
behaviour of Vicha, who played a key role in Yingluck's impeachment. "This
NACC official is prejudiced and engaged in improper conduct that demonstrates
his personal bias against me by giving media interviews indicating that I'm
guilty," he said. The former minister went on to say that it was difficult
for him to believe he will undergo a fair and legal deliberation process now
that the case has been handed over to Vicha. He claimed that NACC was using the
same double standards against him as the ones it used against Yingluck's
administration, in comparison to the Abhisit Vejjajiva government's rice
scheme, which is still incomplete after five years. He went on to say that the
NACC had rushed the G2G case by refusing to investigate the buyers, who were
representatives of the Chinese government. He added that these firms had sent
the NACC official letters confirming the fact that they were state enterprises.
He claimed that the rice-pledging scheme is being used for an
artificial political discourse to discredit the Yingluck government. "It's
a shame that those against Pheu Thai turned the rice scheme into political
discourse to bring down Yingluck's government, even though the scheme helped
millions of farmers," he said. Boonsong said the G2G system has been
widely used in many countries and that Thailand too had engaged in it several
times in the past. Poom agreed, saying the G2G deal was beneficial to the
country because the government did not want the stockpiled rice to degrade or
rot and that releasing the whole lot through this deal was the best option. He
also pointed out that if the G2G deal had been delayed, the price of the rice
would have dropped further and there would have been the additional cost of
storage and tax. Plus, he said, it forged stronger ties with China. The NLA
will meet again next Thursday to pose questions to all sides. The final
statements will be presented on May 7, and the NLA will vote for or against
impeachment the following day.
http://www.nationmultimedia.com/politics/NACC-accuses-former-ministers-of-fabricating-G2G-r-30258644.html
Agriculture Ministry announces progress of aid plans for rice
& rubber farmers
The Ministry of Agriculture and
Cooperatives says it has successfully offered help to all troubled rice and
rubber farmers as planned.Speaking about the government’s performance during
the past six months, Agriculture and Cooperatives Minister Pitipong Puengbun na
Ayuddhya said the government had distributed over 60 billion baht to rice and
rubber growers affected by falling agro-product prices and drought in its
short-term solutions.Regarding solutions to drought-related problems, Pitipong
said the Ministry of Agriculture and Cooperatives offered affected rice farms
compensation of 1,000 baht per rai and provided them with job opportunities,
organic agriculture training programs, and water supplies for farming.
More than 3.5 million households
have benefited from the Ministry’s assistance measures.As for the rubber
industry, the Ministry has also provided compensation of 1,000 baht per rai to
more than 767,000 households and approved loans of 20 billion baht for rubber
farmers via financial institutions.As the long-term solutions, the Ministry has
planned to revamp the structure of the country’s agricultural development
through its various projects which number over 3,000. The revamp is expected to
enable farmers to earn more income in a sustainable manner ahead of an upcoming
farming season.
http://www.pattayamail.com/business/agriculture-ministry-announces-progress-of-aid-plans-for-rice-rubber-farmers-46402#sthash.6QuyeZt1.dpuf
IFAD Earmarks N1.5bn To Boost Rice, Cassava Production
Posted by admin on Apr 24th, 2015 and filed under Business. You can follow any responses to
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currently closed.
The International Fund
for Agricultural Development
(IFAD) has says that it had set aside N1.5 billion to boost rice and cassava
production by small farm holders in Nigeria in 2015. The IFAD Country Portfolio
Manager, Mrs Atsoko Toda, disclosed this in Lokoja at the opening of a
two-day workshop on small farm holders’ productivity enhancement component.He
explained that part of the money will be used to train small farm holders in
the areas of sustainable agricultural practices and production
techniques.According to her, access to fertilisers and agro chemicals as well
as improved cuttings and certified rice seeds will also be provided for the
category of farmers under focus.She added that farmers will be trained on how
to add value to rice and cassava production so as to enhance their income,
create wealth and jobs for the youths.
According to her, the programme
tagged IFAD-Value Chain Development will go a long way to achieve food
sufficiency for the country.Toda explained that IFAD decided to focus on rice
and cassava because of their capacity to quickly increase the total volume of
food available to the people.She added that processors will also be encouraged
to produce polished and stone-free rice so as to discourage Nigerians from
going for imported rice.She explained that the workshop was organised to
deliberate upon and arrive at a strategic framework for the implementation of
the component two of the IFAD-VCDP.The coordinator said that Anambra, Niger,
Ogun, Taraba, Benue and Ebonyi were the six states selected for the
implementation of the Programme.
Tk
302m incentive for 0.21m Aus paddy farmers in 10 days
FE Report
The government ann-ounced on Wednesday that it would distribute Tk
302 million (30.2 crore) among farmers in the form of incentives during the
current Aus paddy season aiming to help scale up production."We will
provide Tk 302 million to 210,000 (0.21 million) farmers of 48 districts. The
money will be disbursed within the next ten days," Agriculture Minister
Begum Matia Chowdhury told the journalists while announcing the incentives at
the conference room of the Ministry of Agriculture on the day. The incentive
will be provided in cash and also in the form of agricultural inputs like seeds
and fertilisers."Under the incentive programme additional 70,000 tonnes of
rice will be produced. The total value of the produce will stand at Tk 2.31
billion (rice Tk 2.24 billion and straw Tk 70 million). The ratio of
expenditure to income is 1:8," she mentioned.Asked about distribution of
the incentive, she said the government would maintain utmost transparency in
distributing the cash, seeds and fertiliser to the farmers.
She said farmers would get the cash through bank accounts. The
selected farmers would give their signatures/thumb prints at the time of
receiving the agricultural inputs.Upazila Agriculture Implementation Committee,
upazila level agriculture officer and union council chairmen and members
concerned will select the deserving farmers for the facilities. Out of the
amount (Tk 302 million), Tk 243 million will be given to farmers for
cultivating the Ufshi variety of Aus and Tk 59 million for the Nerica variety.
The districts are Noakhali, Jessore, Jhenidah, Bogra, Lal-monirhat,
Meherpur, Gai-bandha, Natore, Joypurhat, Tangail, Mymensingh, Moul-vibazar,
Khulna, Satkhira, Sirajganj, Pabna, Kishoreganj, Thakurgaon, Dinajpur,
Gopa-lganj, Kushtia, Barisal, Pirojpur, Jhalakathi, Barguna, Madaripur, Bhola
and Bagerhat.The government has set a target to produce around 35 million
tonnes of rice this year. Apart from giving the incentives for Aus paddy
cultivation, the government has already disbursed Tk 240 million in the same
form for cultivating wheat, mustard, Boro paddy and BARI Khesari.
A total of 210,000 farmers in 48 districts will cultivate the Ufshi
variety of paddy on 210,000 bighas of land during the current fiscal year (FY)
2014-15.A total of 180,000 farmers will cultivate Ufshi Aus on 180,000 bighas
in 48 districts while 30,000 farmers will grow the Nerica variety of paddy on
30,000 bighas in 37 districts.Each of the farmers will get Tk 1,350 for the
Ufshi Aus paddy production and Tk 1,970 for the Nerica variety.About Tk 400
will be given for irrigation of both Ufshi and Nerica varieties and Tk 400 for
removing unwanted wild plants for cultivating the Nerica variety.Each of the
farmers will get 5 kg seeds of the Ufshi variety and 10 kg seeds of the Nerica
variety.Besides, each farmer will receive 20 kg urea, 10 kg Muriate of Potash
(MOP) and 10 kg Diammonium Phosphate (DAP) for cultivating both the varieties
of Aus paddy.
talhabinhabib@yahoo.com
Food ministry finally calls for rice import
duty
The food ministry has at last asked the National
Board of Revenue to slap duty on rice imports in a last ditch move to arrest
the downward spiral of prices of the grain and prevent farmers from racking up
unsustainable losses. Millers and analysts termed the initiative to be 'too
late' as the harvest of boro paddy has already begun and the grain is trading
at Tk 100 per maund (40 kilogram) below last year's prices. The rice prices are
also lower than those that prevailed at this time last year, according to
Trading Corporation of Bangladesh. The government should have imposed the duty
much earlier as many farmers and millers have already incurred losses for
rising imports from India, said Bappi Saha, a rice miller from Netrokona
district.
Farmers get as low as Tk 450 for each maund of
BRRI Dhan 28, the most popular rice variety during the boro season. The lowest
price of the same variety was Tk 550 per maund during the harvesting period
last year, he said. The present price of paddy is much below the government
estimate of farmers' production cost of Tk 20 each kilogram during the current
boro season. “The demand for paddy remains lukewarm among millers. Because of
that, we are suffering from losses.
We cannot clear our stocks for the imports.” Saha
said the farmers will be unable to recover their investment unless the
government takes steps immediately. Acknowledging the downward trend of rice
prices owing to imports, the food ministry finally sought the NBR's help
yesterday -- a move that comes four months after the parliamentary standing
committee on the food ministry advised for discouraging imports. Between July 1
last year and April 21 this year, rice imports stood at 12.91 lakh tonnes,
which is more than three times the total imports last fiscal year, according to
food ministry data. In fiscal 2013-14, 3.74 lakh tonnes of rice were imported.
Earlier, some millers and importers said the zero duty buoyed rice
imports.
The
imported rice traded in the domestic market for household consumption has
affected farmers and millers, they added. But the government continued to
ignore the concerns of millers and farmers, with some top government
functionaries such as Food Minister Md Qamrul Islam maintaining that
low-quality rice was being imported for 'cattle feed'. Some aromatic rice was
also imported but the amount of import was not so high compared to domestic
production and consumption, Islam told The Daily Star last month. A month
later, the food ministry in its letter said huge quantities of rice are being
imported from India, causing a downward trend in rice prices on the domestic
market.
The letter, citing the government's boro rice
procurement of 11 lakh tonnes during the current harvesting season, said the
aim of the domestic purchase was to ensure fair prices of cereal for farmers
and keep the market prices of grains stable. The ministry said the prices of
boro paddy usually fall due to increased supply after harvesting. So, the
government typically purchases rice to rein in the price fall and ensure fair
prices for growers. “It will be difficult to ensure fair prices for producers
if the massive rice imports continue,” said the ministry in the letter.
Subsequently, it sought 'necessary measures' from the NBR to impose duty on
rice imports.
Apart from imports, domestic production also rose
this fiscal year. Farmers bagged around 1.32 crore tonnes of aman rice in the
immediate harvest, up 1.28 percent year-on-year. Aus output also edged up
slightly after record boro production last year, according to Bangladesh Bureau
of Statistics. M Asaduzzaman, a professorial fellow of Bangladesh Institute of
Development Studies, said the government should have imposed duty on rice
imports in February, such that the farmers got fair prices. “It is too late.
This means nothing now. The damage has already been done.
The growers would have taken better care of their
crops if the duty was slapped then,” he said. However, Nirod Boron Saha,
president of rice and paddy stockists' and wholesalers' association in Naogaon,
wants the government to act on the decision right away. The duty should be
imposed within a week, as the boro harvest is yet to start in full swing in the
northwest, one of the main rice producing regions, he said. Source :
thedailystar.net
Read more at: http://www.caclubindia.com/forum/food-ministry-finally-calls-for-rice-import-duty-326008.asp#.VTtlpNKUdg8
Govt purchase 150,000 MT of paddy
- President's Secretary
The government has purchased 150,000 MT of paddy from farmers
island-wide at a cost of Rs. 7.2 billion during the Maha season 2014/2015, Secretary
to the President P.B Abeykoon told a media briefing held at the Government
Information Department today (24).He said that the the country was receiving
massive paddy harvests and the government had allocated Rs. 10 billion to
purchase paddy during the Maha season.
Accordingly, funds would be provided to farmer associations
through District Secretariats. Paddy would be purchased at government
stipulated prices, making use of over 180 paddy storage facilities in the
country, while providing relief for farmers, he added.He noted Cabinet decision
to place stipulated prices for Keeri Samba at Rs. 50 per kilo, Samba at Rs 45
per kilo and Nadu at Rs. 40 per kilo.
http://www.news.lk/news/business/item/7328-govt-purchase-150-000-mt-of-paddy-president-s-secretary
Rice seed scaling project
launched
4/23/2015
Ghana News Agency (GNA)
Ghana News Agency (GNA)
Nyankpala, April 23, GNA – A project to overhaul the rice seed
system and improve farmers' access to all rice seeds in the Northern and Upper
East Regions has been launched.The three-year initiative dubbed: 'Rice Seed
Scaling Project,' is being implemented by the Africa Rice Centre, in
collaboration with the Agricultural Technology Transfer (ATT) Project, Savanna
Agricultural Research Institute of the Council for Scientific and Industrial
Research (CSIR-SARI), Alliance for a Green Revolution in Africa (AGRA), and
some selected private seed companies and extension agencies.
The United States Agency for International Development (USAID) is
funding the project with one million dollars, while Africa Rice Centre is
providing the technical support to ensure a successful implementation.The
objective of the project is to amongst others, improve seed planning and
connect actors along the rice seed value chain, as well as strengthen capacity
of rice seed value chain actors to stimulate the development of a sustainable
rice seed system in northern Ghana.The move is to ensure that 1.5 tons of
quality breeder seeds are produced yearly by SARI and purchased by private
sector companies, 50 to 60 tonnes of quality foundation seeds are produced
yearly by four private seed companies, and purchased by certified seed
producers, and 2,000 to 2,500 tonnes of certified and quality declared seeds
are produced yearly from 2016 by both certified seed producers and
community-based seed producers and purchased by paddy rice producers.
Dr Stephen Nutsugah, Director of
CSIR – SARI, said at the launch of the project at Nyankpala near Tamale on
Tuesday that the project had come at an opportune time to enhance food security,
reduce importation of rice and increase incomes of
smallholder rice producers, traders and processors through increased production
of good quality rice.Despite various initiatives by government to increase rice
production, the country still has a demand-supply gap that is being filled
through importation of more than 350,000 metric tonnes
annually, costing more than 600 million dollars.
The country's total rice demand will reach some 820,000 metric
tonnes yearly, in a few years' time for which a boost in domestic production
becomes very paramount in meeting such rising demand.Dr Nutsugah, therefore,
said the project would collaborate with other rice project initiatives, by
delivering interventions that sought to address the challenges facing the country's
rice industry, to ensure the production of increased and good quality rice to
meet the rising demand.Dr Olupomi Ajayi, Consultant, Rice Sector Development
and Risk Management Officer at Africa Rice Centre, said: "This project is
unique because at the end of the project, we must leave behind a rice seed
system that functions well and is sustainable and its impact should be felt by
everyone involved in the seed system."
Dr Ajayi expressed gratitude to USAID for providing the financial
support for the project, which would address the constraints and opportunities
identified in the country's national seed policy.Mr Brian Conklin, Deputy
Office Director / Agriculture Team Leader, Office of Economic Growth of USAID,
called for effective collaboration with other rice sector projects, to ensure
the transformation of the country's rice industry.
GNA
http://www.world-grain.com/news/news%20home/LexisNexisArticle.aspx?articleid=2349586916
USA Rice and Mexican Rice Council Talk TPP
Lunch meeting between USA Rice and Mexican Officials
TPP talk brings U.S. and Mexico to the table
WASHINGTON,
DC: As Trans-Pacific Partnership (TPP)
negotiations enter their final stages and market realities come into sharper
focus, USA Rice met yesterday with Ricardo Mendoza from the Mexican Rice
Council and Norberto Ugalde of Mexico's National Council of Agriculture and
Fisheries to discuss areas of mutual interest and concern. Mendoza and Ugalde are in the U.S.
participating in discussions on the TPP and negotiating on behalf of Mexican
agriculture and rice. "There are
several areas where collaboration can benefit both of our industries,"
says Betsy Ward, "and we welcome this and future opportunities to share
information and provide assistance to one another. It was a pleasure to visit these important
Mexican agricultural leaders and talk about the trade relationship with our
number one export market."
The U.S. and Mexican rice industries are
particularly interested in the potential commercial impact if Mexico agrees to
eliminate import duties on rice from Vietnam. Vietnam is a TPP partner and rice
from that country faces a 20 percent import duty in Mexico while U.S. rice
enters duty free under the North American Free Trade Agreement.
Contact: Sarah Moran (703)
236-1457
Improved
Access for U.S. Rice Follows U.S.-Peru Agreement on Plant Health Issues
(From left to right): Peruvian Ambassador to U.S. Luis Miguel
Castilla, USDA Under Secretary Ed Avalos, Peruvian Minister of Agriculture Juan
Manuel Benites, and translator
"Peru is one of those markets that has great potential for
increased U.S. rice exports and we are grateful to USDA Under Secretary Ed
Avalos for his work in improving market access for U.S. rice, said USA Rice
Director of International Promotion Sarah Moran. "To this end, USA Rice
will commence promotional activities in Peru this year, targeting importers,
millers, foodservice operators, chef associations and other HRI operators."Exports
to Peru increased nearly 1,000 percent from 2013 to 2014 and there is now
potential for increased exports. The
U.S.-Peru Trade Promotion Agreement (TPA), which was implemented in 2009,
allows for 104,970 milled tons (MT) of U.S. rice to enter Peru duty free in
2015.
Contact: Michael Klein (703)
236-1458
CME Group/Closing
Rough Rice Futures
|
From PoliticoPro
By Helena Bottemiller Evich
U.S. rice has reappeared on shelves of mainstream U.K.
supermarkets after a nine-year absence in the wake of unapproved biotech
varieties discovered in U.S. exports, according to the USA Rice Federation. The
group took some credit, saying the new acceptance of U.S. rice came after its
members flew to London last October to meet with retailers, importers, millers
and wholesalers.
The U.S. rice sector has been campaigning for years to
assure European and other markets that there is no biotech rice left in the
U.S. supplies. EU rice imports from the U.S. sank from 275,000 tons in
2005 to just 100,000 tons in 2006, the year that Bayer CropScience's unapproved
biotech Liberty Link 601 rice was found in U.S. rice supplies, according to
USDA data. By
2013, U.S. rice exports to the EU had sunk to just 177
tons.
Getty
New crop insurance math, new challenges for farmers
As the federal crop insurance program grows more complex, farmers
are having a hard time keeping up.
4/21/15 5:07 PM EDT
It’s not quite calculus, but it’s getting pretty close with all
the bells and whistles Congress has added to the federal crop insurance program
— now the biggest part of the safety net for American farmers.The newest
refinement is something called yield exclusion, or YE for short, a
little-debated provision in the 2014 farm bill which was added in the final talks
on behalf of cotton and grain producers in the South and West hurt by the
severe droughts of recent years.
Story Continued Below
As its name suggests, the idea is to let growers exclude those
especially bad years which lower their production score so important to
calculating what level of revenue protection they can buy. Among the qualified
counties, preliminary data from the Risk Management Agency released Tuesday
shows that about 19 percent of the policies sold thus far have taken advantage
of the new provision. But it’s corn, not cotton, leading the way — an added
dividend on top of the concessions already won by corn growers in the commodity
title.
Among 410,771 corn policies, for example, 28 percent or 115,452
chose yield exclusion. But among 73,681 cotton policies, the RMA said 19
percent or 13,904 took advantage of the YE option.Soybeans are close behind at
16 percent. Together corn and beans — two mainstays in the Midwest — account
for 78 percent of the policies excluding one or more years.For most Americans,
crop insurance is one big rabbit hole better left to Alice — or at least the
House and Senate Agriculture committees. But jumping into the numbers is also
an education to the challenges faced in shaping a farm safety net that is
meaningful for major crops from one region to the next.
For policymakers, that’s more and more the bottom line, as crop
insurance has surpassed traditional commodity price support programs. But it
also raises questions about how to balance the risks to the producer versus
those to the taxpayer subsidizing the system.A recent report from the
Government Accountability Office warns that higher-risk regions are already
costing the program well beyond the premiums set by the RMA. Add in the new YE
provision, and it puts RMA in something of a bind, caught between what seem to
be two conflicting mandates.For the farmer, it’s really a crash course in
calculus. So many variables are in play, each impacting the optimal outcome.
Take a look at the most common form of coverage today: revenue
insurance. The two major elements are a farm’s expected yield, based on its
average production history or APH, and the anticipated market price for the
crop, which is based on futures contracts for each season. Multiplying these
two establishes a farmer’s expected revenue. From that, he or she then decides
what percentage or guarantee is affordable to keep the bankers at bay and
ensure enough of a return to get back into the field next year.Since market
prices are beyond a farmer’s control, APH becomes all the more important. And
even prior to the new farm bill, there were provisions to allow a grower to sub
out some bad years or take advantage of new multipliers to reflect improved
technology that has increased yields for many crops.But YE goes a big step
further, and when RMA released its multicolored maps this winter, the numbers
for some regions were frighteningly high for insurance companies.
Dry land cotton growers in West Texas could throw out as many as
10 years. For non-irrigated corn, big sections of Kansas, Nebraska and South Dakota
qualify for five or more years.Critics argue it’s a new Wonderland and black
eye for the larger crop insurance system.“It’s a little bit like saying I have
to insure all the red Corvettes driven by 16-year-olds in the high school
parking lot, but I’m going to exclude all the wrecks they have had when I come
up with the rates,” said Bruce Sherrick, an agriculture economist at the
University of Illinois. “It’s not a good actuarially conceived program.
It’s not sound at all.”Proponents of YE counter that the car
insurance analogy breaks down on two points.First, nothing about YE changes the
critical “rate yield” index in RMA’s premium formula — the factor best
measuring the “crash” history for an individual farmer. “Those zeroes do
count,” said Darren Hudson, a Texas Tech economist in the heart of cotton
country. And the premiums set by RMA are already such that the added cost of
the YE option scared off many cotton growers in what are already hard times.
“We are at a break-even
price right now for cotton production,” said Gid Moore, a West Texas crop
insurance agent. “You’re watching every penny you can, and you certainly can’t
afford to pay that much more.”But the second and bigger philosophical point
goes to the question of what crop insurance is all about.In the case of car
insurance, Hudson said, “you are insuring the full value of the vehicle and you
are hoping you don’t have a loss. But the premium is for the full value of the
vehicle.”For crop insurance, the farmer is looking to protect only a percentage
of his or her revenues.
“If you are at a 50 percent coverage level, you have to lose 50
percent of your revenue before you get the insurance to pay anything,” Hudson
said. But if a farmer’s APH keeps falling with every drought year, even that 50
percent is not adequate as a safety net. “What you end up doing is lowering the
potential coverage that [the farmer] can purchase, which prevents that safety
net mechanism from being a reality,” he added.“Yes there is a tradeoff,” Hudson
said. “There’s always the potential — when you are talking about a subsidized
unit — of inducing moral hazard behavior … But for most producers they want to
find the cheapest way they can to protect them from the catastrophic loss that
kicks them out of business next year. And I think the yield exclusion helps.
It gives them options on
ways to manage that that they didn’t have before.”One such strategy is to use
the new provision to increase a farm’s APH and then back down on the percentage
guarantee required.Take for example, a dry land cotton grower whose actual
production over the past 10 years has averaged about 235 pounds per acre. By
taking advantage of all adjustments allowed before the 2014 farm bill, the
farm’s APH could be increased to about 341 pounds. When YE is then added to the
mix, that APH can jump as high as 580 pounds per acre — more than double the
235 pound average.
For a 70 percent guarantee, the premium would be out of sight:
more than $72 an acre. But if the farmer buys just a 50 percent guarantee, he
or she can bring that premium back down to under $30 per acre. For a few extra
dollars, that buys significantly more protection than the prior 70 percent
guarantee on the lower 341 pound per acre APH.If it all seems a little wild, it
is. But advocates of the new provision can also point to the same set of
numbers to justify their case.Yes, the elevated APH is double the 10 year
average for that same farm. But in at least three of those 10 years the farmer
produced close to or far more than 580 pounds. That shows the potential is
there in real life — and not some meaningless plug that rewards the good and
bad. “This is actually what somebody produced.
We might exclude some years here, but we are not deviating from
the idea that this is somebody’s actual history,” said John Anderson, a top
economist with the American Farm Bureau. “Yield exclusion wasn’t about trying
to give people something for nothing. It was really about trying to help people
maintain a yield history that would give some meaningful level of coverage.”“To
the extent that crop insurance is part of that publicly-provided safety net,
this issue of more or less universal access to it, is kind of important because
that’s what we have always had,” Anderson said.
“It would be a pretty big
departure to say ‘We’re going to rely on crop insurance and not have anything
else, but you guys out here in the West, it’s not going to work for you so
we’re going to cut you off’.’”“Maybe it wasn’t as big a deal when there were
other programs out there which were really carrying the load in terms of the
farm income safety net. But now that we are primarily relying on crop
insurance, these issues really do come to the fore.”In truth, the RMA numbers
Tuesday are only a first glimpse of what lies ahead, and it is likely to take
several years for the program to shake out.
Moore concedes that YE may prove more valuable than cotton growers
first realized. The higher rate of participation by corn is not entirely a
surprise, but those cotton producers who participated very likely excluded more
years.But the Midwest Corn Belt also has some built in cost advantages. As a
rule, it’s judged a lower risk insurance area and enjoys lower premium rates.
For $100 of coverage at a 75 percent guarantee level, it’s estimated that a
Kansas corn farmer has to pay close to $3.22 compared to $1.25 for a farmer in
Illinois. Add to this the fact that the Illinois farmer may only need to
exclude one year, the devastating 2012 drought season That means the added YE
premium is not a show stopper.“The farm side decision is easy: you almost
always take it,” said Sherrick.
And if the higher APH allows a farmer to buy a lower percentage
guarantee, it also means the subsidy rate on his or her premium will be
higher.“My personal opinion is it is not the right way to have coverage,”
Sherrick said. “If the policy goal was to have higher coverage, it seems to me
there are more direct ways to do that. I think the risk of a black eye to the
crop insurance industry at large is pretty great with this program. … When
somebody says it’s too expensive, they’re either lying or uninformed. It’s
always cheaper for bushel for bushel coverage.”On this much at least Anderson
agrees: “It’s more complicated than it used to be when you were talking about
simple price-based systems” for commodity programs,” he said. “It’s just a more
complex world.”
Canada
threatens heavy tax on Arkansas products
Posted: Apr 24, 2015 4:14 AM PSTUpdated: Apr 24, 2015 4:25 AM PST
"Unfortunately, products already targeted for trade barriers
include Arkansas rice, poultry, grains, and beef," said Cotton.Dow
Brantley, like other Arkansas rice farmers, spent his day planting in the
fields, all the while the threat of a tariff on his livelihood in the back of
his mind."The threat is to go from a 0 tariff to a 100 percent tariff
which could be devastating to us," said Arkansas Rice Federation Chairman
Dow Brantley.The Obama administration is appealing the WTO ruling. That
decision and Canada's reaction to it are expected next month
http://www.katv.com/story/28885717/canada-threatens-heavy-tax-on-arkansas-products?utm_source=USA+Rice+Daily%2C+April+24%2C+2015&utm_campaign=Friday%2C+December+13%2C+2013&utm_medium=email
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