At a time when government support for the sector is winding down under the FAIR Act, the combination of weak markets and sharply rising costs is further eroding market returns and could severely undercut producers' financial stability. Current expectations are that rice producers' net market returns for the 2001 crop, not including government payments, could be negative.
Rice is the only major commodity for which such negative returns are forecast.
If that help is not forthcoming, in the form of a Market Loss Assistance or similar payment for 2001 and 2002, many rice farmers will find themselves facing the end of their farming operations. Such payments need to be in an amount that will raise government payments to a level that is at least equal to the total payments received in crop year 2000. An outline of those recommendations is attached to this release. The U.S. Rice Producers Association, representing rice farmers in Mississippi, Missouri Texas, California and Arkansas, is the only organization solely representing the views of US rice farmers. Over the past several months, the farmer-members of the U S Rice Producers Association and the U.S. Rice Producers Group have worked together to develop a consensus position with respect to legislation needed to address the needs of the nation s rice producers through our domestic agricultural commodity programs.