NGFA and Other Ag Groups Urge Presidential Action to Maintain Mississippi River Barge Navigation
Date Posted: December 5, 2012
Washington—The National Grain and Feed Association (NGFA) this week joined with a diverse array of farm, commodity and agribusiness organizations in urging immediate action to maintain navigation on the Mississippi River between St. Louis, Mo., and Cairo, Ill.
Navigation on this 200-mile stretch of the Mississippi River “will be severely impaired – and barge transportation may well cease altogether – by mid-December unless the administration takes emergency action to ensure the statutorily authorized nine-foot draft needed to maintain commercial navigation,” according to a letter submitted to President Barack Obama and other key federal officials and members of Congress by the NGFA and 20 other agricultural and waterway organizations.
Specifically, the letter urges that action be taken under Section 501(b) of the Stafford Act directing that the U.S. Army Corps of Engineers:
• Release measured, but sufficient, flows from Missouri River reservoirs to maintain a nine-foot navigation channel on the Mississippi River to sustain commercial navigation. The letter noted that if winter moisture does not materialize to adequately replenish the reservoirs, the Corps could consider releasing less water from the dams during the spring navigation season.
• Waive federal acquisition rules to expedite the agency’s contract-award procedures and order that the Corps take immediate action to remove rock formations near Grand Tower and Thebes, Ill., which present significant hazards to navigation. Otherwise, the letter noted, the Corps has indicated it would take until as late as the end of March to complete the project. However, the letter emphasized that, “while removal of these rock pinnacles should be helpful, this action in-and-of-itself is not expected to fully alleviate the need for Missouri River flows to maintain navigation.”
The Mississippi River is essential to U.S. agriculture – serving as the primary means of transporting key agricultural inputs and providing access to domestic and international markets for U.S. farmers’ production.
The letter stressed that maintaining navigation for the next few months is “particularly critical” for securing crop inputs for the 2013 planting season and marketing the 2012 grain and oilseed crop.
In an average weather year, nearly 60 percent of U.S. grain and oilseed exports are transported via the Mississippi River system.
While drought-reduced yields plagued much of the U.S. growing region this year, the U.S. Department of Agriculture reports that more than 65 million metric tons of grains and nearly 37 million metric tons of soybeans are likely to be exported.
In total, it is projected that approximately 300 million bushels of grains and oilseeds worth $2.3 billion would be delayed in reaching their intended markets in December and January if Mississippi River navigation is disrupted.
Meanwhile, it is estimated more than 500,000 tons of fertilizer moving northbound would be disrupted during the same two-month period.
“Reduced supplies in export positions would pressure farm prices and erode the United States’ ability and reputation as a reliable supplier of agricultural products to serve foreign buyers, which is integrally important to U.S. and global economic growth, domestic jobs and global food security,” the letter said.
The letter also emphasized that losing access to efficient, low-cost barge transportation would affect U.S. farmers and agribusinesses adversely through increased transportation costs. It noted that barges provide a competitive alternative that discipline rates charged by other modes.
In addition, it said, it would be “neither feasible nor cost-effective” to divert the volume of affected agricultural commodities to truck and rail given capacity and routing constraints.
The letter noted a single dry-bulk barge – the type typically used in transport grains, oilseed and fertilizer – can haul 1,750 tons of product, compared to 110 tons in a bulk rail car and 25 tons in a truck trailer.
In addition, the letter pointed out, “ the cascading impacts and costs that would be felt by American consumers and our fellow citizens as a result of impacts on other industrial products – such as coal, imported fuel, road salt and other goods.”
A copy of the letter and list of signatories is attached here.
Established in 1896, the NGFA is a U.S.-based nonprofit trade association that consists of more than 1,050 companies from all sectors of the grain elevator, animal feed and feed ingredient, integrated livestock and poultry, grain processing, biofuels and exporting business.
NGFA-member companies operate more than 7,000 facilities nationwide that handle more than 70 percent of U.S. grains and oilseeds.
Affiliated with the NGFA are 26 state and regional grain, feed and agribusiness trade associations.
The NGFA also has strategic alliances with the North American Export Grain Association and Pet Food Institute.
For further information, contact:
Heather McElrath, NGFA Director of Communications, 202-289-0873, ext. 11; firstname.lastname@example.org
Randy Gordon, NGFA President, 202-289-0873, ext. 12; email@example.com