Harvest Update from the Drier Network

It’s hard to believe, but we are already preparing for the next harvest season. While harvest may only last a couple of months, the work that goes into preparing for it happens all year long. There are many moving parts, and many people working behind the scenes to ensure those 60+ critical days of harvest are as smooth as possible.  

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It is no secret that we anticipate yet another down year in rice acres. Lower volume creates real challenges on our end, especially when we don’t fully know how much is signed up until late June. That is why some of our managers have reached out to many of you asking about planting intentions. We know it’s earlier than usual to be asking these questions, and we fully understand there are still many unknowns in today’s environment. However, these conversations are important. They allow us to plan better by aligning storage capacity and the ability to structure our operating footprint to provide the highest return to the membership.  

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In fact, we began our storage planning process in early December this year. That’s the earliest we’ve ever started a storage plan. Given current market levels, proactive planning matters more than ever. We carry significant fixed costs in the Drier Division to ensure we are fully prepared to serve you at harvest. In lower-volume years, how we operate becomes even more critical. Running a facility at half capacity often costs nearly as much as running it at full capacity. The lights remain on, equipment must be maintained, insurance and utilities continue, and trained personnel are still required. The difference is fewer bushels to spread the fixed cost over. This year, we will be laser-focused on efficiency, not only doing things the right way but making sure we are doing the right things. Our goal is to make every decision centered on strengthening your value as a member and providing the best service and returns we possibly can.    

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As of today, we have completed one of our four winter membership meetings, and the first meeting went very well for District 1. It was encouraging to see strong attendance and engagement. The district-specific updates and conversations were valuable, and I appreciate those who came out and participated. I look forward to seeing the rest of the council at the upcoming meetings over the next few weeks. Your input, communication, and partnership are critical as we navigate the season ahead together.

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As always, no matter what challenges come our way, our goals are still the same.

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Thank you for your partnership and trust in this Riceland team. If you have questions, concerns, or just want to visit, please don’t hesitate to reach out to me.  

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Thank you for all you do! ‍

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Nick Kelley

‍(870) 377-7207