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Overproduction will be a mistake for rice producer in 2018

Overproduction of rice in 2018 could set the stage for lower prices.

Overproduction will be a mistake for .S. rice producers in 2018, says University of Arkansas Extension economist bobby Coats.

In an interview at the recent USA Rice Outlook Conference in San Antonio, Coats explained how the supply and demand situation could play out next year.

Across the Rice Belt, acreage will increase by around 17 percent to 2.9 million acres, according to the World Agriculture Supply and Demand Estimate (WASDE) report that came out Dec. 12. That report shows long-grain rice (2.175 million acres) accounting for most of the expansion. Medium and short grain area is projected at 725,000 acres.

“It is certainly important to understand that we do not need to overproduce, but should stay in a nice balance of supply and demand,” Coats said.

He explains further in this video.

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