To: NATIONAL EDITORS

Contact: Dwight Roberts of the U.S. Rice Producers Association, +1-713-974-7423

HOUSTON, Oct. 14 /PRNewswire-USNewswire/ -- As a result of growing concerns about inaccuracies in the USDA crop production estimates voiced by members, warehousemen, and other industry trade representatives, the U.S. Rice Producers Association has assembled a survey based production estimate to help provide clarity to the rice market. The primary concern addressed in the report is the overestimation of yield and production numbers that producers feel may be negatively distorting the marketplace.

According to the mathematically projected USDA estimate (see Figure 1), the 2008 U.S. rice crop would exceed 204 million hundredweights of rice. Major hurricanes, unseasonably cool weather, early spring rains and delayed plantings have caused many in the rice industry to question the accuracy of these numbers based on historical versus actual crop condition and yield projections. Of specific concern to producers are the possible negative effects on price that these values may cause. After extensive research conducted at the producer level and in conjunction with various state extension personnel, USRPA has evaluated the crop and discovered several key differences from the government numbers. These differences are primarily in the yield and production categories (see Figure 2) which translate to a much lower value than was previously anticipated at the national level. In contrast to the government numbers, USRPA suggests that the total production for the year will likely be around 170 million hundredweights, roughly 33 million hundredweights less than the values in the government report. Given the current state of the market, these factors could translate into a deficit by the end of the marketing year, which will undeniably affect the marketing options of rice producers nationwide.

These values are anticipated to result in a significantly increased level of competition between domestic and export buyers later in the year. As it strives to improve reporting accuracy and market transparency, USRPA welcomes any comments, corrections or suggestions but feels this situational evaluation to be accurate as of October 2008. We also look forward to working more closely with the USDA to help refine the accuracy of their mathematical projections and help minimize any potentially negative impacts to the rice industry.

The US Rice Producers Association, representing rice farmers in Mississippi, Missouri, Texas, California, Arkansas and Louisiana, is the only organization solely representing the views of the U.S. rice farmers.

October 10 USDA WASDE Projections (Figure 1) Area (1,000 acres) Planted 2.94 Harvested 2.92 Pounds Yield Per Harvest Acre 6,982 Million Hundredweight Beginning Stocks 29.4 Production 204.1 Imports 25.5 Total Supply 259.1 Domestic & Residual 126 Exports 108 Total Use 234 Ending Stocks 25.1 State Acreage, Production, and Yield Summary (Figure 2) Estimated Actual Harvested Average Production % of Total U.S. Area Yield (All Classes) - Rice Crop (1,000 Acres) 1,000 cwt Arkansas 1,342.8 5,116 68,581.8 40.3% California 517.0 8,100 41,877.0 24.6% Louisiana 453.6 4,526 20,010.4 11.8% Mississippi 227.9 6,513 14,765.0 8.7% Missouri 198.8 7,036 13,974.1 8.2% Texas 163.9 6,891 10,949.9 6.4% Total 2,903.9 6,174 170,158.2

SOURCE U.S. Rice Producers Association

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