Rice producers have dealt with low commodity prices, weather impacting yields, and a litany of other issues this growing season and now they are battling on another front – trade. Last year, the United States imported a record amount of rice, USA Rice President Peter Bachmann said during the field day Thursday (July 31) held at the Northeast Rice Research and Extension Center in Harrisburg.
Rice imports have surged from two countries in particular, India and Thailand. Another speaker at the conference, Jackson County farmer Jennifer James noted that one-third of all the rice consumed in the U.S. last year came from a foreign source.
Bachmann said there is one way to combat the influx of foreign rice and that’s tariffs. Thailand’s got a 20% tariff on rice imports into the country and USA Rice supports levying a 25% tariff on imports from India.
“For rice … we need tariffs,” he said. “We’re pushing for higher tariffs.”
James, who testified before Congress earlier this year, said that the bleak outlook for farmers at the beginning of the year has not improved. During her testimony earlier this year, she asked a very simple question that has been repeated in the media numerous times since, she said.
“Is farming really worth it?” she asked at the time.
The country is at a crossroads and people are going to have to ask themselves if they want food produced domestically.
“If Americans want to buy their food (from domestic sources) they are going to have to pay for that luxury … If ag fails, small towns will fail,” she said.
Another issue for the rice industry in particular is competition with other commodities for resources. There are an estimated 5,500 rice farmers in the country in the six states that produce the crop. By comparison, soybean and corn producers each have up to eight times more farmers and it gives them a lot more leverage, she said.
Despite the negative news on several fronts, Bachmann said there are some positive notes in the rice sector. Efforts are underway to strengthen ties with the United Kingdom.
Specifically, the U.S. is seeking a change in trade policy that would allow for rice to be milled and packaged here and then sent there, he said. Globally, the U.K. might be our best option to expand rice exports, he added.
The recently passed federal budget bill changed the rice reference price from $14 per hundred weight to $16.90. It was the highest reference point increase for any commodity.
Many of the protections passed in the recent federal legislation won’t take effect until late 2026, and Bachmann said they will continue to lobby lawmakers for additional assistance.
“We are ready to fight back … the rice economy is not in a good place. The farm economy is not in a good place,” he said.