{"id":22672,"date":"2024-10-25T16:41:32","date_gmt":"2024-10-25T16:41:32","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=798646"},"modified":"2024-10-25T16:41:32","modified_gmt":"2024-10-25T16:41:32","slug":"mississippi-river-dries-up-again-at-worst-time-for-us-farmers","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/10\/25\/mississippi-river-dries-up-again-at-worst-time-for-us-farmers\/","title":{"rendered":"Mississippi River Dries Up Again at Worst Time for US Farmers"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/img\/social\/opengraph\/ij-social-agribusiness-1200x630.png\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/midwest\/2024\/10\/25\/798646.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/midwest\/2024\/10\/25\/798646.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p class=\"bloomberg\">The Mississippi River is suffering from low waters for the third straight autumn, a crucial time of year when American farmers rely on the route to deliver their crops to the world.<\/p>\n<p>Months of limited rainfall \u2014 with few chances for more during the rest of the season \u2014 have left the vital waterway so shallow that barges are starting to run aground, even after shippers started running lighter loads to prevent boats from hitting the river bottom.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"agribusiness\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>While the situation isn\u2019t as chaotic as in years past, the lack of water is again creating headaches for shippers and farmers. The drying of the Mississippi over the past three years is raising shipping costs and hindering farmers\u2019 ability to compete for markets overseas. During the best of times, nearly two-thirds of US crop exports are shipped on the Mississippi to the Gulf of Mexico.<\/p>\n<p>\u201cLonger periods of low water, and increased transportation costs to get bushels to port in the US, ultimately starve off business,\u201d said No Bull Inc. grain analyst Susan Stroud.<\/p>\n<p>Shipping costs are currently about 55% above the average for the past five years. While demand for American soy and corn is strong, those elevated costs could create a competitive disadvantage once farmers in Brazil start harvesting early in 2025.<\/p>\n<p>For now, because world buyers in countries like China are rushing to import US crops ahead of the Nov. 5 presidential election, shippers are able to pass along the extra costs. US corn at the Gulf of Mexico is priced at about $197 per metric ton \u2014 just below prices in the Brazilian port of Santos.<\/p>\n<p>World demand has been shifting away from the US for years, partly due to increased domestic processing that keeps more supplies in the country. The river problems are only making a recovery more difficult.<\/p>\n<p>\u201cWe are at the mercy of the river,\u201d said <a href=\"https:\/\/www.linkedin.com\/in\/bryce-baker-35b5491a\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bryce Baker<\/a>, general manager of the <a href=\"https:\/\/www.jerseycountygrain.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Jersey County Grain<\/a>terminal in Hardin, Illinois. Baker started booking barges he needed this month back in August to make sure he wasn\u2019t short.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"agribusiness\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>So-called draft restrictions, which limit how deep a vessel can sit in the water, mean a barge of corn could have 27% less than a full load. \u201cIt definitely affects the volume,\u201d Baker said. \u201cIt\u2019s really making facilities like mine get longer barge freight.\u201d<\/p>\n<p>The problem stems from a dry spell in the regions that feed the Mississippi as well as the Missouri and Ohio rivers. Across the Midwest, nearly 83% of the land is abnormally dry and almost 53% is in drought, according to the <a href=\"https:\/\/droughtmonitor.unl.edu\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Drought Monitor<\/a>.<\/p>\n<p>It\u2019s so dry that one good rain won\u2019t solve the low water problems on the river, said <a href=\"https:\/\/www.linkedin.com\/in\/drew-smith-p-e-bc-wre-1064b0208\/\" target=\"_blank\" rel=\"noopener noreferrer\">Drew Smith<\/a>, deputy chief of the watershed division of the Army Corps of Engineers.<\/p>\n<p>Officials aren\u2019t ready to blame climate change. The recent trend of dryness was preceded by a lengthy wet period that didn\u2019t end until 2020. \u201cIt\u2019s very cyclical, we see it both ways,\u201d Smith said.<\/p>\n<p>\u201cIt remains to be seen what may be driving the dryness over the last few years,\u201d said Trent Ford, the <a href=\"https:\/\/stateclimatologist.web.illinois.edu\/about\/\" target=\"_blank\" rel=\"noopener noreferrer\">Illinois State Climatologist<\/a>, a position under the University of Illinois. \u201cThree years doesn\u2019t make a trend.\u201d<\/p>\n<div class=\"copyright-notice quiet\">Copyright 2024 Bloomberg.<\/div>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/location\/usa\/\" class=\"btn btn-sm btn-primary tagtag\">USA<\/a> <a href=\"https:\/\/www.insurancejournal.com\/agribusiness\/\" class=\"btn btn-sm btn-primary tagtag\">Agribusiness<\/a> <a href=\"https:\/\/www.insurancejournal.com\/location\/mississippi\/\" class=\"btn btn-sm btn-primary tagtag\">Mississippi<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"798646\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! 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