Producer's Annual Meeting

Over 300 members attended the 82nd Annual Membership Meeting of Producers Rice Mill, Inc., held at noon on November 6th at the Grand Prairie Center in Stuttgart, Arkansas.  A catfish lunch prepared by Yoder Ruritan Club was enjoyed.

The public portion of the meeting was highlighted by guest speaker Peter Bachmann, President and CEO of USA Rice, who gave an update on the state of the US Rice Industry. 

  Following the public session, a business meeting for members was held.  Keith Glover, President & CEO of Producers began his remarks by reporting on the most recently completed 2024/25 marketing year. 

Glover said favorable economic conditions for rice production at the beginning of 2024, along with the best spring planting weather in 8 years, resulted in mid-south rice acreage increasing for the second year in a row. Despite an expansion in rice acreage, average 2024 field yields in the mid-South set new records. For the second crop in a row, the biggest disappointment was the milling yields which was the worse milling crop since the horrible 2010 crop.  

The 2024 rice harvest was one of the earliest and quickest in Producers’ history.  Overall receipts from our members during 2024-25 were 60,088,789 bushels, up 6% from the previous year and our largest volume from members since the 2020 rice crop.

Producers’ eligible long grain seasonal pool on a 49/69 milling yield basis, averaged $6.60½ per bushel which beat USDA’s long grain average farm price by 30 cents per bushel.  This was the 36th consecutive year, Producers’ long grain seasonal pool has beaten the USDA national average.  Our Producers overall medium grain pool on a 46/69 milling yield averaged $6.87½ per bushel which also beat the USDA average farm price for southern medium grain.

When evaluating your overall return, please remember the drying charges for our green rice members are the lowest in the entire U.S. rice industry!  Among rice marketing cooperatives during 24-25, Producers’ basic drying charge was 9½ cents per green bushel lower and 15-20¢ per green bushel lower than most independent commercial elevators.

During 2024/25, our mills processed a total of 60.0 million bushels, a 912,000 bushels increase over the previous year. U.S. long grain milled rice exports to Iraq increased by 26% compared to the previous year. However, increased Iraqi exports were offset by a 21% drop in U.S. long grain milled rice shipments to Haiti due to ongoing gang violence.

Total revenue for the year was $641 million, a decrease of $10.4 million from last year. Despite higher millings and member receipts, lower U.S. rice prices in 24-25 led to a slight drop in overall revenue.   

Financially, Producers’ working capital at year-end stood at $59 million, a decrease of $1.8 million. Our working capital balance would have shown an increase for the year had it not been for the acquisition of a 2.3-million-bushel rough rice storage facility that was financed out of working capital.  

Non-patronage income net of taxes was $2,578,178. Members’ equity redeemed during the year was $5,946,442. Total members’ equity increased $9.0 million to a record $195.2 million at year end. 

As mentioned earlier, on July 18th Producers purchased the Harvest Rice facility in McGehee Arkansas. Even though the facility contains a rice mill that last operated as recently as November 2024, we bought the facility for its rough rice storage.  The facility has 2.3 million bushels of GSI metal storage tanks that are in good condition.  

The McGehee facility is only 45 minutes from our Greenville rice milling complex.  During harvest we will use the McGehee rough rice storage to relieve overflow dried down rice from our DeWitt, Dixie Dryer(DeWitt), Pine Bluff and Wilmot Drying Facilities.  Collectively, during the last 3 harvests these facilities have had to ship out between 2.5 to 2.7 million bushels each year by September 30th in order to continue receiving green rice.  Even during the 2025 harvest, our new McGehee facility stored 2,220,160 bushels of members’ rice.

In summarizing the 2024-25 marketing year, Glover said Producers once again provided our members with outstanding service during a record field yielding harvest and continued our 36-year streak of Producers’ long grain seasonal pool settlements beating USDA’s average farm price for rice!  I want to thank all of our employees for the amazing job they do on our members’ behalf each and every day.  

Based on farmer surveys, USDA’s March 2025 Prospective Planting Report indicated Arkansas’ rice acreage would increase for the third year in a row. All of that changed in the first week of April when a multi-day rain system dumped over 10 inches of rain in northeast Arkansas.  This multi-day rain event caused major flooding along all of the rivers and streams and resulted in 520,038 acres of prevent planted rice just in Arkansas.

USDA is currently estimating Arkansas’ 2025 rice field yields averaged 166 dry bushels per acre, which is 4 bushels per acre lower than the 2024 crop.  In Mississippi, USDA is estimating a state field yield average of 167 dry bushels per acre which is only one bushel per acre lower than last year’s record crop.  Based on our preliminary data, we believe USDA’s current field yield estimates for Arkansas and Mississippi are too high.  

The early milling yields on the 2025 rice crop averaged 2 to 3 pounds higher than last year, but as the harvest continued whole kernel milling yields began to drop, in a similar fashion to last year. Currently, our long grain is averaging a little over one pound higher than last year for whole kernels.  Unfortunately, 2025 is the third year in a row extremely low whole kernel milling yields have occurred.  This year’s chalky kernels are about the same as last year.  

Despite Producers’ 2025-26 acreage signups being up 7%, the 2025 rice harvest was among the fastest in Producers’ history. Truck lines were long at all Producers’ facilities, although not as lengthy as the 2024 harvest. At our Stuttgart drying facility, peak congestion occurred on the morning of September 3rd, with 65 lines of loaded green rice trucks, compared to the 2024 peak of 72 lines. 

Glover expressed his heartfelt thank you to our dryer managers and all harvest-related employees on another phenomenal job serving our members this fall.   

 

Regarding the market, in our opinion the most important market fundamental affecting a new marketing year is the size of the crop.  Currently, USDA estimates the 2025 U.S. long grain crop at 153.7 million cwts., which is down 18.3 million cwts. or 11% from the previous year.  Unfortunately, this year’s drop in production is offset by an 18.0 million cwt increase in the carryover or beginning U.S. long grain stocks.  At 37.3 million cwts., this year’s U.S. long grain carryover stocks were the highest in 40 years.

Once the size of the crop is determined, the next critical market fundamental is export demand.  Due to a bumper 2025 South American rice crop and their sharply lower export prices, U.S. long grain export sales are down dramatically from last year’s pace.  When broken out by category, it’s the U.S. long grain rough rice exports that have been hit the hardest which are down a whopping 49% from a year ago.  

Both the Western Hemisphere and the World currently have a glut or oversupply of rice. To correct this imbalance of supply, we really need to see a cutback in rice production in the Americas and worldwide.  In South America there are reports of a cutback in rice plantings this fall due to the terrible economics of growing rice.  Here in the U.S., it is widely anticipated U.S. long grain acres will also be down in 2026.  If current U.S. rice prices don’t improve soon, 2026 U.S. Long Grain rice acreage could be down dramatically! 

In summarizing the U.S. market outlook for the remainder of the crop year, our best chance for an improvement in rice prices could occur in the Spring of 2026 if the South American rice crop harvested turns out to be smaller than expected and next year’s U.S. long grain acres are dramatically lower.

In the meantime, we, at Producers, will continue to work with USA Rice and other Ag organizations for additional economic assistance to farmers.  We also promise to do our best to maximize your return on the 2025 rice crop at Producers.  On behalf of all of your employees, we want to thank our members for your support and patronage of Producers Rice Mill.  

 

In the business session of the annual meeting, Gary Wilks, Drew Whiting, C.B. “Pete” Moery III, and Greg “Peck” Kerksieck were elected to serve three-year terms on the board of directors. 

In the board meeting following the membership meeting, Jay Coker was reelected to the position as chairman of the board of directors.  Gary Wilks was reelected as the vice president & vice chairman of the board.  Other officers elected were Keith Glover, president & general manager; Kent Lockwood, treasurer; and Lana Roth, secretary.