Note From the CEO

Dear Council Members,

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Spring is here! After a winter filled with stress and uncertainty, my hope for you all is that getting back to doing what you love to do lifts your spirits and gives you hope!

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The USDA March 1 planting intentions report was released on March 31. The report estimates 2026 long grain acres in Arkansas will be down 24% from last year at 900,000 acres, and Missouri long grain acres will be down 19%. While medium grain acres are estimated to be similar to last year. This puts the total acres for Arkansas at 1 million acres and for Missouri at 175,000. Some industry experts think the number for Arkansas could be 150,000 acres too high.

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What was really telling about the week was this huge cut was announced, and the rice futures price is basically unchanged. We continue to be in a demand market. The industry needs more demand for U.S. rice to move into positive territory.

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The Rice Stocks report, as of March 1, came out on March 31, and it also reflects the demand issue we are facing. Long grain acres in 2025 (last year’s crop) were down 7% nationally from 2024, but on March 1, 2026, we had 3% more rough rice stocks and 32% more milled rice stocks when compared to March 1, 2025. Acres and production were cut, yet we still have more stocks on hand now than we did this time last year. That is a demand problem!

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The Iranian conflict has driven up your cost for fuel and fertilizer, but it has also created an additional demand problem. One vessel of U.S. rice bound for Iraq is currently anchored near the Strait of Hormuz waiting for safe passage. A second vessel quantity that was milled for Iraq is sitting in barges in New Orleans, looking for a new home. Thankfully, Riceland sold our portion of the vessel on a delivered New Orleans basis, so we are not at risk financially. Still, the third position for Iraq that Riceland and the industry should be milling on right now is in jeopardy.

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The lack of demand for U.S. long grain rice is multifaceted, as we have discussed many times in our recent emails and meetings. Riceland is taking the lead to tackle the two largest issues impacting demand, quality and imports. 

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Your Riceland team is also working hard to strategically develop the plan to handle an extremely small rice crop in 2026. Stay tuned.

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Local weather watching is your life, as it should be. But keep an eye on the developing El Niño in the Pacific Ocean during July through September. Historically, strong El Niños have negative impacts on Asian rice crops. Not hoping for poor crops in any areas due to the negative impact it could have on many populations, but world rice stocks are currently burdensome, which negatively impacts global rice prices. 

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Thanks again for serving your cooperative. If I can be of any assistance, please let me know.

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Be safe out there!

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GO BIG BLUE!

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Kevin McGilton