Bill Huffman
Director - Governmental Affairs

October 31, 2008

Japan to Purchase Rice

We are pleased to report that Japan is preparing to tender for the purchase of California rice.  As we reported earlier, Japan suspended all imports of rice and grain last month because of food safety concerns after some rice from China and Viet Nam was found to be contaminated. The Japanese Ministry of Agriculture has instituted new food safety requirements on Japanese importers and is preparing to tender for the purchase of California minimum access rice on November 7th to be followed by an SBS tender on November 17th.  This is positive news for the California rice industry!

Korea Purchases More California Rice

Korea purchased another 14,571 metric tons of California rice on their 3rd tender of the year. ADM was awarded the business. As reported earlier, Farmers’ Rice Cooperative was successful on the 2nd tender for a cargo of rice to Korea.

October Stocks Report

USDA issued its official October 1 Stocks Report this week. For California, old crop carry-in was at the lowest level in 10-years at 1.8 million cwts.

USDA Working on New Actively Engaged Rules

The U.S. rice industry is expecting USDA to soon issue interim new “actively engaged” and “adjusted gross income (AGI)” rules as required by the 2008 Farm Bill. These new rules would be effective for the 2009 crop year. Sources say that the new rules for “actively engaged” will result in minimal changes (from present rules) with respect to requirements for capital, management and labor. The sources also indicate that the new rule for the adjusted gross income (AGI) requirement will likely require growers to certify their AGI level once every third year and that certification likely might allow for growers to have an AGI certification statement prepared and signed by their Certified Public Accountant for submission to the Farm Service Agency or growers could submit a copy of their tax return.

We expect these interim rules will be announced sometime in November.

In Memory

We were saddened this week by the death of longtime FRC member William A. Baggett of Marysville. Bill passed away in Ennis, Montana while on a hunting trip.  He was a rice farmer in Yuba County for 30 years. Survivors include his wife Sharon Baggett and his sons Paul and Josh. 

Bill Baggett was a prince of a guy, a well respected leader in the California rice industry where he served on boards of the California Rice Commission, the California and U.S. Rice Producers’ Group and the California Rice Research Board.

Graveside services will be held tomorrow, Saturday, November 1, at the Sutter Cemetery in Sutter, California.  A celebration of Bill’s life will follow at 1:00 p.m. at The Refuge on Butte House Road in Yuba City.

Bill Baggett will be sadly missed by the Board of Directors and Staff of Farmers’ Rice Cooperative and his many friends in the California Rice Industry.

Memorial contributions can be made to Shriners’ Hospital for Crippled Children, Northern California Unit, P.O. Box 21-4477, Sacramento, CA 95821-0477.