For the fourth consecutive year, water levels in the Ohio and Mississippi Rivers are expected to reach critically low levels, forcing shippers to light-load grain barges during the busy harvest season. With barge rates climbing higher, the increased costs are trickling down to farmers already facing tight margins.
Gary Williams, director of the Upper Mississippi River Water Association, said that between low commodity prices and high shipping expenses, “Corn and soybean growers are looking to stash their commodities in every nook and cranny they can find.”
A Forbes report noted the timing could not be worse for U.S. producers. “This is a peak period when corn and soybeans from the Midwest get shipped downriver to New Orleans for export to the international marketplace.”
If water levels continue to fall, Mike Steenhoek of the Soy Transportation Coalition warned the impact could translate into lost profits for farmers. He said the inefficiencies of the river system during low-water events often mean higher transportation costs and reduced competitiveness for American exports.
