Bill Huffman
Director - Government Relations

November 14, 2008

Congress returns next week for a “lame duck” session to try to finalize some left over legislation and possibly act on another Federal economic stimulus package. It is our view that they will not be able to agree to another Federal stimulus package and that it will be carried forward to after January 20, 2009 when the new Democratic Administration of President-Elect Barrack Obama moves into the White House.

There will also likely be Congressional debate next week on whether or not the Federal government should bailout the U.S. automakers, who are now seeking about $25 billion from the Federal treasury. 

USDA Update

There continues to be many names added to the list of potential candidates for Secretary of the U.S. Department of Agriculture in the Obama Administration.  It appears that former Iowa Governor Tom Vilsack may be the number one candidate.  He is being backed by Senate Agriculture Committee Chairman Tom Harkin, D-Iowa and other Midwest interests.  Iowa’s other Senator Charles Grassley, R-Iowa has not officially endorsed Vilsack, however, he was quoted this week saying “It’s always been beneficial for our state (Iowa) to have another Iowan closer to the seat of power.”

We are hearing that former California Department of Food and Agriculture Secretary Bill Lyons of Modesto is casting his name in for the Deputy USDA Secretary position.  It would be nice to have a Californian in a key USDA post, especially since California is the largest agricultural producing state and has over 200 different crops grown here.

Congressional Leadership Update

One of the best and most influential Republican leaders in the U.S. Senate, Senator Saxby Chambliss, R-Ga, is involved in a December 2nd run-off to retain his seat.  Saxby Chambliss is a good friend of the U.S. rice industry working with Senator Blanche Lincoln, D-Ark, and other rice state Senators in helping our industry on farm policy, trade and regulatory issues.

The rice industry is stepping up to support his run-off election with large contributions.  The Farmers’ Rice Cooperative Fund together with Producers’ Rice Mill PAC and the USA Rice Federation PAC have all made contributions to support of Senator Chambliss.

We encourage California rice growers to write personal checks in support of Senator Chambliss as his leadership as the ranking Republican on the Senate Agriculture Committee is vitally important to the future of the U.S. rice industry.  For more information about his run-off campaign, please feel free to call me (Bill Huffman) at 916-768-4416 and I will give you the name and address of Senator Chambliss’s campaign in the event you might want to contribute.

Market Update

Japan held a tender Thursday night for two 13,000 ton cargoes of rice.  ADM rice was the successful supplier for both cargoes. 

Japan also purchased 7,763 tons of 2008 crop Koshi and Akita rice grown in California. Farmers’ Rice Cooperative will be supplying a portion of this rice.

We understand Korea will issue a tender in the next week or so for more California table rice. 

FRC Annual Meeting

We would like to remind all FRC members that the 2008 Annual Meeting of the Cooperative will be held Friday, November 21st at the Radisson Hotel in Sacramento.  Registration begins at 9:00 a.m. and the Business Meeting begins at 10:00 a.m. Lunch will be served at the conclusion of the meeting.