1. Production, Market, and Expected Return December 2008
Rice
Production, Market, and Expected Return
December 2008
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri
copyright eStudy.us 2008

2. Overview
Native of China and India (arrived in the U.S. in the 1600’s).
The U.S. is the twelfth largest producer worldwide and the second largest exporter of rice
The U.S. provides 12 percent of the world wide rice trade.
Today more than 98,000 tons are harvested each year
More than 50% of the world’s population is dependent upon rice for 80% of its diet.
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

3. Market & Use Opportunities
Nearly all U.S. rice is marketed as a whole kernel milled product.
Five different products can be produced from rough rice
Hulls
Bran
Brown rice
Whole-kernel milled rice
Brokens (broken-kernel milled rice)
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

4. Market & Use Opportunities
On average, for every 100 pounds of rough rice produced.
55 pounds of whole-kernel milled rice
15 pounds of brokens
8-9 pounds of bran
20 pounds of hulls
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

5. Market & Use Opportunities
Domestic Market (50% of U.S. rice crop)
Food for human consumption (58%)
Beer production (16%)
Pet food (10%)
Rice exports
Rough (unmilled) rice
Domestic seed sales
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

6. Health and Nutrition Brown Rice (one cup) White Rice (one cup)
Calories
kcal
232
223
Protein g
4.88
4.10
Carbohydrates
49.7
49.6
Fat
1.17
0.205
Dietary Fiber
3.32
0.74
Vitamin B1 mg
0.176
0.223
Vitamin B2
0.039
0.021
Vitamin B3
2.730
2.050
Vitamin B6 Mg
0.294
0.103
Folacin
mcg 10
4.1
Vitamin E
1.4
0.462
Magnesium
72.2
22.6
Phosphorus
142
57.4
Potassium
137
Selenium 26 19
Zinc
1.05
0.841
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

7. Production Characteristics
Generally planted between April 15 and June 5
Can be indefinitely cropped in irrigated fields.
Rice can be grown in almost all soil types.
Field grade is the most important factor in choosing and preparing a field for rice.
There are four rice production systems that can be used.
Conventional rice tillage. (i.e. drill seeding and broadcast seeding)
Water culture (i.e. rice is pre-sprouted and seeded by plane)
Minimum tillage
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

8. Production Characteristics
Three water delivery system can be used
Furrow irrigation
Intermittent flooding
Sprinkler irrigation
Rice can be grown without flooding so long as moisture stress is avoided.
Irrigated rice fields require 1 to 2 inches of water.
Three to four days between irrigation or rainfall in July and August .
Four to eight days between irrigation or rainfall in May, June and September.
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

9. Production Characteristics
Rice takes four to five months until maturity.
Harvest rice in Missouri
Starts in October.
The fields are drained and dried prior to harvesting.
After harvesting comes drying (air dry only)
Final step is milling
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

10. Production Characteristics
Weed management
Several weed varieties are prevalent .
Barnyardgrass, Red rice, Sprangletop and Northern jointvetch
Weed Suppression Strategy
Herbicides are used extensively to control weeds
Pest management
Insects generally are much less severe in this area than other rice-producing areas of the United States.
Pest List
Water weevil
Rice stink bug
Several grasshopper species
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

11. Production Characteristics
Pest Suppression Strategy
Insecticides are applied throughout the season when necessary
Disease management
Two main diseases cause yield reductions
Sheah blight
Blast
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

12. Risk Assessment – Net Return
Ark Non-Delta
Item
2006
2007
Gross Revenue
$596.18
$734.06
Variable Costs less labor
$314.45
$346.61
Explicit labor cost
$19.61
$20.30
Implicit labor cost
$35.32
$36.56
Total variable costs
$369.38
$403.47
Fixed Costs
$223.42
$236.60
Interest
$7.24
$7.43
Total Costs
$600.04
$647.50
Return to Land, Cap. And Mgt.
-$3.86
$86.56
Worksheet uses a $8.41 per cwt in 2006 and $9.89 per cwt in 2007
See Appendices “Prod. Detail” for year by year detail
Source for assumptions:
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

13. Revenue Estimates Revenue sources
Revenue may vary greatly with price and yield variation
Production incentives from the government
Direct and Counter-Cyclical payments
Marketing Assistance laons
Loan Deficiency Payments
Crop and Revenue Insurance
Export Programs
Source for assumptions:
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

14. Risk Assessment
Market Risk: Price has been variable since the early 1980’s.
Following data is for the time period of
Market demand to increase by 27%
Price futures to increase by 29%
Net returns to increase by 75%.
Source for assumptions:
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

15. Appendices
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

16. Appendix – Prod. Detail Ark Non-Delta Item 2006 2007 Variable Costs
Seed
$34.38
$38.03
Fertilizer
$51.99
$64.69
Chemicals
$56.75
$57.64
Custom operations
$27.93
$29.13
Fuel, lube, & Elect.
$102.66
$113.40
Repairs
$27.66
$28.61
Purchased water
$0.18
$0.19
Commercial drying
$12.90
$14.92
Variable cost less labor
$314.45
$346.61
Hired labor
$19.61
$20.30
Unpaid labor
$35.32
$36.56
Total Labor cost
$54.93
$56.86
Total Variable Cost
$369.38
$403.47
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

17. Appendix – Prod. Detail continued
Ark Non-Delta
Item
2006
2007
Fixed Cost
Capital recovery of equip.
$98.55
$103.42
Opportunity cost of land
$89.46
$95.80
Taxes & Insurance
$16.28
$17.59
General farm overhead
$19.13
$19.79
Total Fixed Cost
$223.42
$236.60
Interest
$7.24
$7.43
Total Costs
$600.04
$647.50
Return to Land, Cap. And Mgt.
($600.04)
($647.50)
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri

18. Bibliography History Health and Nutrition Production Characteristics
Health and Nutrition
Production Characteristics
Note: Currently there is no rice production in Kentucky All data and assumptions are based on rice grown in southeast Missouri