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Rice: Background for 1990 Farm Legislation

Author

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  • Childs, Nathan W.
  • Lin, William

Abstract

Rice ranks ninth among major U.S. field crops in terms of value of production. All U.S. rice production is irrigated, providing more stable yields than many other crops. Three classes of rice are produced in the United States--long, medium, and short grain--with long grain predominant. Domestic use and exports of U.S. rice have increased in recent years due in part to the implementation of the marketing loan program in the mid-1980's following declines in both domestic use and exports in the early 1980's. As a result, carryover stocks have declined from a record high of 77.3 million cwt in 1985/86 to 32.4 million cwt in 1988/89. Costs of rice programs, however, rose to an estimated record $1 billion in fiscal year 1989 due to marketing loan costs and increased deficiency payments. Rice growers in the southern rice growing States are rapidly adopting high-yielding, semidwarf varieties of long-grain rice which could raise U.S. production. Rice issues facing farm legislators relate to rising production capacity, stagnant world trade, multilateral trade negotiations, high costs of marketing loans and other rice programs, loan rate differentials between long and medium/short grains, and adjusting the world price formula to further enhance U.S. competitiveness in the world rice market.

Suggested Citation

  • Childs, Nathan W. & Lin, William, 1989. "Rice: Background for 1990 Farm Legislation," Staff Reports 278848, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uerssr:278848
    DOI: 10.22004/ag.econ.278848
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    Cited by:

    1. Ito, Shoichi & Peterson, E. Wesley F. & Mainali, Bharat & Rosegrant, Mark W., 1999. "Estimates for Evolution of U.S. Rice Supply Response Using Implicit Revenue Functions: Implications to the World Food Supply and Trade," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 1.
    2. Willett, Lois Schertz & Watanabe, Satoko, 1991. "A Comparison Of Simulation And Analytical Methods: A Case Study Of The Effects Of Decoupling On The U.S. Rice Industry," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271171, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Salassi, Michael E., 1995. "The Responsiveness Of U.S. Rice Acreage To Price And Production Costs," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    4. A. Farhad Chowdhury, 2002. "The impact of the acreage allotment program on rice farming," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 8(1), pages 49-57, February.
    5. Kim, Young W. & Koo, Won W. & Yang, Seung-Ryong, 1992. "Impact of Trade Liberalization on the Korean Rice Market," Agricultural Economics Reports 23223, North Dakota State University, Department of Agribusiness and Applied Economics.

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