Letter From the CEO

Dear Council Members,

Thank you for your service on the District Councils. Your communication with the general membership, the board of directors, and staff is critical to keeping the lines of communication open and the real issues impacting the membership front and center. In our world today, there is a lot of noise, and we need you to give us a clear signal on the issues that really matter.  

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I hope my recent note concerning future rice advances on the seasonal pool was helpful and answered most of the questions you were getting from the membership. As stated in the note, the $4.00 per bushel initial advance on long grain was very strong compared to the market price at harvest and well into January. According to USDA’s January pricing report, the $4.00 initial advance is over 80% of the average price reported through December, with only 42% of the marketing year complete.

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We will continue to review monthly statements and proceed with advances on long grain and medium grain as the finances allow. As you know, a premium for medium grain continues to hold in the marketplace, which should support a near-term additional advance.

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The team has completed one Membership Meeting to date, with three more scheduled in the upcoming weeks. My message to the membership has two major components: first, how rice industry issues negatively impacting your operations are also negatively impacting your cooperative, and second, what we are doing to make a positive impact for our membership, our business, and the industry.

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Recently, the Riceland Government Affairs Team, along with our Chairman, Vice Chair, and several board members, spent several days in DC pressing our representatives on key issues. Advocating for additional ad hoc assistance to help our members weather this economic storm and to stop the flood of imported rice.  

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We have also begun the process of improving the quality of long grain varieties. This past fall, Riceland received over 30 long grain varieties, which is not a positive direction for the industry. To help lead the industry back to a quality level that will drive demand for our rice, your operations, sales, and research and technical staff have developed the key traits required for high-quality varieties. These traits are currently being shared with seed companies and breeders to lay the groundwork for future varieties, but also to develop an approved list of varieties for 2027.  

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Our current plan is to announce in early October 2026 a board-approved list of long grain varieties Riceland will accept in the fall of 2027. Many may have different views on this, but the industry has been talking about quality for 15 years, and we are where we are. It is time for action, and your cooperative is taking the lead.          

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Please let me or staff know if we can answer any questions, you or members have on anything concerning Riceland. Keeping you informed and up to date is the only way you can be an ambassador for Riceland.

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Thanks again for all you do!

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Be safe out there!

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GO BIG BLUE!

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Kevin McGilton