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Eastern Arkansas faces sharp decline in rice plantings

An ag lender says low prices will likely cause fewer planted rice acres in eastern Arkansas this spring; a concern for the largest rice producing state in the country.

Greg Cole with AgHeritage Farm Credit Services tells Brownfield rice acres are typically 1.3 to 1.4 million in the state, but “we could see rice acres around 900,000 to 925,000. If we get to that level, that’s the lowest number of rice acres in eastern Arkansas since 1983 since we had the USDA’s Payment in Kind program.”

PIK was a supply-reduction program designed to idle farmland and reduce surpluses of several crops, including rice and cotton.

Cole says he could see farmers trying to protect themselves financially by taking a higher Price Loss Coverage payment for rice, and choosing to plant other crops like soybeans, but he says that can impact infrastructure.

“If you’re running a rice mill, guess what? You’ve got less throughput.”

He says this would have long-term impacts on supply chains and profitability, and cotton could be in a similar situation this spring.