According to the sources, it has been indicated by the Capital Press citing a government report that Californian rice acreage is expected to reach around 427,000 acres (around 170,800 hectares) in 2016, which is up about 1% from around 422,770 acres (around 169,108 hectares) from the last year due to reduced prices of other crops. Further, as per the report based on the National Agricultural Statistics Service (NASS) survey, it has been revealed that acreage for the medium-grains varieties is likely to reach around 390,000 acres (around 156,000 hectares), which is up about 3% from last year.
In this matter, meanwhile, one of the executives of the USA Rice Federation has also observed that reduced prices for some crops, such as hay, oats and upland cotton, and continuing water shortages could push up rice acreage. However, it has been stated that excess acreage could in turn lower farm level paddy rice prices. It has also been noted that on average farm gate paddy prices have been following a declining trend. Currently, average farm gate paddy prices are quoted at around $370 per ton, which is down from around $373.19 per ton from the last year, and down from a peak of $600 per ton.
Furthermore, the rice growers in Northern California are expecting to their full allocations of surface water this year. Moreover, the California mostly produces medium-grain rice and is the second largest rice producing state in the U.S. after Arkansas, and it typically contributes to about 25% of the total rice grown in the U.S. annually. In this matter, it has also been revealed that the state’s rice sector employs about 25,000 people and most of the rice grown here is exported.