Featured Topics
Featured Products
Events
S&P Global Offerings
Featured Topics
Featured Products
Events
S&P Global Offerings
Featured Topics
Featured Products
Events
S&P Global Offerings
Featured Topics
Featured Products
Events
Our Methodology
Methodology & Participation
Reference Tools
S&P Global
S&P Global Offerings
S&P Global
Research & Insights
Our Methodology
Methodology & Participation
Reference Tools
S&P Global
S&P Global Offerings
S&P Global
Research & Insights
Agriculture, Rice, Pesticides
November 10, 2025
By Arif Islam and Tanya Rana
HIGHLIGHTS
US ranks as the second-largest buyer of Thai rice
Farmers in the Mississippi River Delta losing around $80 per acre
The US Rice Producers Association (USRPA) is prioritizing the expansion of US rice production and gradually replacing imports from Thailand, while tackling carryover stocks and market pressures, President and CEO Mollie Landers Buckler told Platts, part of S&P Global Energy, in an interview on Nov. 10.
"Over time, we want to grow US rice and provide buyers with a domestic alternative to imported Thai rice," Buckler said. The association is also focused on global market development and supporting farmers through challenging market conditions.
The US government set a 19% tariff on imports from Thailand, effective Aug. 1.
The US ranks as the second-largest buyer of Thai rice, importing 491,987 metric tons from January to July 2025, according to data from the Thai Rice Exporters Association. This represents a 5.7% increase compared to the same period in the previous year.
Mexico is a critical export market, importing roughly one-quarter of total US long-grain paddy production. Buckler said USRPA maintains close contact with Mexican importers and coordinates with the US government to stress the market's strategic importance. "Our farmers' success depends heavily on exports, and Mexico is a cornerstone for long-grain rice," she said.
Mexico has continually increased its paddy imports from the US. In 2024, Mexico imported 585,621 mt of paddy from the US, representing a 70% increase from the previous year, data from S&P Global showed.
However, in 2025, sales to Mexico have been slow, amid quality concerns, according to the USDA Rice Outlook.
USRPA is also expanding its outreach in Central America, working with major buyers such as Walmart to increase imports of US rice and strengthen commercial ties.
US rice farmers face significant challenges from high production costs, excess inventories, and global competition. The lifting of Indian export restrictions and support programs have contributed to overproduction, while US prices have yet to recover. Buckler noted that some old crop rice, which should have been sold, remains in storage, adding to carryover concerns.
As of Nov. 10, Platts' assessment of US long grain #2, 4% broken milled rice was at $549/mt FOB NOLA, down $155/mt on the year. While Platts US long grain #2 Paddy 55/70 Yield was assessed at $269/mt FOB NOLA, down $114/mt on the year.
The US rice carryover estimations for 2025-26 were approximately 2.4 million mt, up 35% from the previous year and the highest since 1986-87, according to the USDA. The bulk of the carryover consisted of long-grain rice at 1.7 million mt, 93% higher than the previous year
"Long-grain rice remains the core of US production, with some medium-grain cultivation in the Mississippi Delta," she said.
Many farmers in the Mississippi River Delta are losing around $80 per acre.
"It's a perfect storm, high input costs, low prices, and excess supplies," she said. Production costs average $1,310 per acre, while total value per acre reaches $1,340, leaving narrow margins.
Weather-related quality issues have also affected recent crops, reducing market competitiveness. In response, USRPA promotes research into seed varieties aligned with buyer preferences and encourages production of higher-value rice.
Buckler praised the recent "Big Beautiful Bill" for supporting US rice farmers but noted that any payments are expected next year.
The One Big Beautiful Bill Act, which came into effect on July 2025, covered economic relief measures and subsidies available to farmers for non-planted acreage.
In terms of Price Loss Coverage, the bill increased payments for farmers for long and medium grain rice from $14/cwt to $16.90/cwt, showcasing a 20.7% increase. The payments to farmers are anticipated to take place after November 2026 following the 2025 crop marketing year.
Meanwhile, farmers are seeking short-term economic assistance to bridge gaps until the next planting season.
USRPA continues to advocate for policy changes to better protect domestic growers from imports and is exploring programs, such as GSM-102 export credit guarantees, to alleviate excess supply and support exports.
The association emphasizes quality improvement, particularly in aromatic rice, which remains in strong global demand. Buckler highlighted 2025 as a record year for aromatic rice imports, emphasizing that US production could expand to replace Thai imports over time.
Looking ahead, Buckler expressed cautious optimism: "The US rice industry is resilient because our farmers adapt quickly and collaborate effectively. By focusing on innovation, quality, and global relationships, we can restore market balance and secure long-term competitiveness."
Products & Solutions
Editor: