Rice Farming

Rice farmers from California to Mississippi have the same goal in mind when they plant this spring: Produce a high-yielding crop that will be the talk of the coffee shop.

But is selecting seed based solely on yield potential in the field really the best way to maximize profits?

“Currently, field yield and milling yields are the primary factors most farmers consider when choosing among rice varieties,” says Dr. Brad Watkins, assistant professor of agricultural economics at the University of Arkansas’ Rice Research and Extension Center in Stuttgart, Ark. “Although field yield is important to the farmer, the choice of which rice variety to plant depends on a wide variety of factors, such as milling yield, the disease history of the field, the soil type of the field, water availability and the effectiveness of the fungicide product. Obviously, both field yields and milling quality must be considered when choosing among rice varieties.”

Watkins advises farmers to put the pencil to the paper to determine how the right balance of field yield and milling yield will affect their bottom line.

“In some instances, milling yields may be secondary to field yields in the farmer’s mind,” he says. “One particular rice variety might yield over 190 bushels per acre but have poor milling yields that significantly reduce the value per bushel the farmer receives at the elevator.”

He cites the example of Wells, a popular variety in Arkansas because of its tendency to yield high in the field.

“Its milling yields tend to be slightly lower than other popular varieties like Cocodrie,” Watkins says, “but its high field yield often compensates for its lower milling yield in terms of gross returns received by the farmer.”

Grow for the market
An important key to selecting the right variety is to look first at what the market wants, says Dr. Johnny Saichuk, Extension rice specialist at the Louisiana State University AgCenter in Crowley, La.

“I recently had a conversation with a farmer who had been out of rice farming for two years because of low prices,” Saichuk says. “One of the things I told him was to look at really high-milling varieties. Millers can afford to be a little more selective. One mill had turned down 1,500 barrels of a variety because they wanted some that had better milling qualities. Grow what the market wants.”

Watkins agrees.

“Characteristics desired by rice end users are very important, but they are typically the concern of rice millers rather than rice farmers,” he says. “The rice millers know the characteristics desired by their domestic and foreign customers and work closely with rice breeders to create marketable rice varieties. The rice millers then provide farmers with a list of recommended or preferred varieties to choose from. Farmers are free to plant any varieties they wish, but they typically choose varieties that are on the recommended list.”

Once they are assured that a variety will meet the market’s demands, farmers then can focus on maximizing yields in the field, says Dr. Steven Martin, assistant professor and Extension economist at Mississippi State University’s Delta Research and Extension Center in Stoneville, Miss.

“Under current pricing, producers should select a variety that will mill good enough to satisfy the buyer,” he says. “Beyond that, yield puts more money in the producer's pocket than increased milling grade.”
Farmers also need to remain flexible as the market shifts.

“Producers should watch the rice market carefully and take advantage of pricing opportunities as or if they occur,” Martin says. “Currently, rice prices have improved, and prospects are for decent prices in 2004. However, the highest prices for the 2004 crop may not come at harvest as they did in 2003.”

Field-specific factors
After balancing the field yield-milling yield equation, field characteristics usually drive the final variety selection decision, Watkins says. Once again, farmers must weigh competing economic factors.

“If a field has a moderate disease risk, a farmer may get by with planting a high-yielding but disease-susceptible variety and control with fungicide,” he says. “But if a field has a severe disease risk, the farmer would be better served by planting a disease-resistant variety. If there is a history of lodging in the field, the farmer might wish to use a short variety that is susceptible to disease and treat for the disease rather than plant a tolerant variety that might lodge.”

Perhaps the best advice for farmers it to not put all of their eggs in one varietal basket.

“Producers should consider varieties that have done well in their area in recent years and consider some of the newer varieties as well,” Martin says. “Planting a mixture of proven varieties and some small acreage of the newer varieties will give producers a chance to evaluate some of the newer varieties on their individual farm.”

This also is a good risk-management strategy, Watkins adds.

“Since the rice farmer faces tradeoffs when choosing among alternative rice varieties,” he says, “the decision concerning which variety to plant involves risk. Therefore, a farmer should not plant all acres in one variety. Most farmers in Arkansas plant at least two or three varieties to reduce their risk. The idea is to set up for success and not get into a situation where all control is lost.”

As helpful as it is to crunch the numbers and weigh competing factors, there is simply no substitute for a farmer’s knowledge of his own fields.

“The final decision concerning which variety to plant is field-specific,” Watkins says. “Thus, no one factor will be superior in all instances.”

For questions or comments about this article, contact Rice Farming editor Vicky Boyd at (209) 571-0414 or vlboyd@att.net.

Field yields or milling yields? Put pencil to paper to see what factor will pencil out
By Alan Goforth
Rice farmers from California to Mississippi have the same goal in mind when they plant this spring: Produce a high-yielding crop that will be the talk of the coffee shop. But is selecting seed based solely on yield potential in the field really the best way to maximize profits? “Currently, field yield and milling yields are the primary factors most farmers consider when choosing among rice varieties,” says Dr. Brad Watkins, assistant professor of agricultural economics at the University of Arkansas’ Rice Research and Extension Center in Stuttgart, Ark. “Although field yield is important to the farmer, the choice of which rice variety to plant depends on a wide variety of factors, such as milling yield, the disease history of the field, the soil type of the field, water availability and the effectiveness of the fungicide product. Obviously, both field yields and milling quality must be considered when choosing among rice varieties.” Watkins advises farmers to put the pencil to the paper to determine how the right balance of field yield and milling yield will affect their bottom line. “In some instances, milling yields may be secondary to field yields in the farmer’s mind,” he says. “One particular rice variety might yield over 190 bushels per acre but have poor milling yields that significantly reduce the value per bushel the farmer receives at the elevator.” He cites the example of Wells, a popular variety in Arkansas because of its tendency to yield high in the field. “Its milling yields tend to be slightly lower than other popular varieties like Cocodrie,” Watkins says, “but its high field yield often compensates for its lower milling yield in terms of gross returns received by the farmer.” Grow for the market An important key to selecting the right variety is to look first at what the market wants, says Dr. Johnny Saichuk, Extension rice specialist at the Louisiana State University AgCenter in Crowley, La. “I recently had a conversation with a farmer who had been out of rice farming for two years because of low prices,” Saichuk says. “One of the things I told him was to look at really high-milling varieties. Millers can afford to be a little more selective. One mill had turned down 1,500 barrels of a variety because they wanted some that had better milling qualities. Grow what the market wants.” Watkins agrees. “Characteristics desired by rice end users are very important, but they are typically the concern of rice millers rather than rice farmers,” he says. “The rice millers know the characteristics desired by their domestic and foreign customers and work closely with rice breeders to create marketable rice varieties. The rice millers then provide farmers with a list of recommended or preferred varieties to choose from. Farmers are free to plant any varieties they wish, but they typically choose varieties that are on the recommended list.” Once they are assured that a variety will meet the market’s demands, farmers then can focus on maximizing yields in the field, says Dr. Steven Martin, assistant professor and Extension economist at Mississippi State University’s Delta Research and Extension Center in Stoneville, Miss. “Under current pricing, producers should select a variety that will mill good enough to satisfy the buyer,” he says. “Beyond that, yield puts more money in the producer's pocket than increased milling grade.” Farmers also need to remain flexible as the market shifts. “Producers should watch the rice market carefully and take advantage of pricing opportunities as or if they occur,” Martin says. “Currently, rice prices have improved, and prospects are for decent prices in 2004. However, the highest prices for the 2004 crop may not come at harvest as they did in 2003.” Field-specific factors After balancing the field yield-milling yield equation, field characteristics usually drive the final variety selection decision, Watkins says. Once again, farmers must weigh competing economic factors. “If a field has a moderate disease risk, a farmer may get by with planting a high-yielding but disease-susceptible variety and control with fungicide,” he says. “But if a field has a severe disease risk, the farmer would be better served by planting a disease-resistant variety. If there is a history of lodging in the field, the farmer might wish to use a short variety that is susceptible to disease and treat for the disease rather than plant a tolerant variety that might lodge.” Perhaps the best advice for farmers it to not put all of their eggs in one varietal basket. “Producers should consider varieties that have done well in their area in recent years and consider some of the newer varieties as well,” Martin says. “Planting a mixture of proven varieties and some small acreage of the newer varieties will give producers a chance to evaluate some of the newer varieties on their individual farm.” This also is a good risk-management strategy, Watkins adds. “Since the rice farmer faces tradeoffs when choosing among alternative rice varieties,” he says, “the decision concerning which variety to plant involves risk. Therefore, a farmer should not plant all acres in one variety. Most farmers in Arkansas plant at least two or three varieties to reduce their risk. The idea is to set up for success and not get into a situation where all control is lost.” As helpful as it is to crunch the numbers and weigh competing factors, there is simply no substitute for a farmer’s knowledge of his own fields. “The final decision concerning which variety to plant is field-specific,” Watkins says. “Thus, no one factor will be superior in all instances.” For questions or comments about this article, contact Rice Farming editor Vicky Boyd at (209) 571-0414 or vlboyd@att.net.
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