Note From the CEO
Thank you for agreeing to serve on your District Council. As members of the Council, you are ambassadors for Riceland, and I want to make sure you have the information needed to answer questions and advocate for your cooperative.
Dear Council Members,
Thank you for agreeing to serve on your District Council. As members of the Council, you are ambassadors for Riceland, and I want to make sure you have the information needed to answer questions and advocate for your cooperative.
This email communication will come to you every other month to keep you up to date on major issues facing the cooperative. It will include recent decisions made by the board of directors or senior staff that may impact the membership. This will also be your opportunity to give us feedback on issues you and others in your district are facing. We want to help so please, let us know what you are hearing.
The FY’25 Seasonal Pools for long grain, medium grain, and soybeans all finished higher than the current estimates from USDA for Season Average Prices. And the rice pools finished higher than other marketing pools in our service area. These results reflect profitable rice and soybean operations which were produced by your dedicated staff! Profits at the cooperative equals greater payouts to our members!
I hope your harvest is going well. We recognize the extremely negative economic conditions our members are facing. Riceland has been on the front line advocating for our members for immediate ad hoc assistance to keep your farming operations viable. This message has been heard in Washington, D.C. and we believe there will be an aid package coming before the end of the calendar year.
During the July and September board meetings, directors approved multi-million-dollar investments associated with the Seven Year Strategic plan that was adopted in January. A project was approved to increase drying capacity in the I-40 corridor region and additional storage at Waldenburg. The board also approved a major investment in the soybean crushing operation to replace the oil extractor which is nearing its end of life. This investment ensures Riceland will be a soybean crusher for many years in the future.
Recent market dynamics confirm the importance of a strong, farmer-owned Riceland Foods. When the Mississippi River closed for soybeans, your cooperative was open for business due to your investment in a soybean crushing operation. Riceland rice patrons are not impacted by limited river rough rice demand due to a diversified portfolio of domestic and export milled rice businesses.
And future farming operations will require a greater level of risk management. Multiple delivery locations that allow crops to come out of the field quickly, diversified marketing options that allow a farmer to have exposure to futures markets while also leveraging their investments in further processing and having access to goods and services for free or at a reduced rate. That is your Riceland Foods today and we are working hard every day to expand that diversification and benefits for our members. I look forward to sharing our progress in future updates!
The current agriculture economic environment is difficult and due to major issues beyond our control, but the current storm cannot and should not keep us from planning for a future where a strong Riceland Foods serves our members at the highest level possible.
Be safe out there!
GO BIG BLUE!!
Kevin McGilton