Drought on the Panama Canal continues to slow down global ag trade

Both imports and exports are moving through the Panama Canal at a slower pace as the ag industry continues to deal with drought-related restrictions.

Returning from a recent trip to the Panama Canal, an Indiana farmer says drought in Central America continues to impact global trade. Carey McKibben told Brownfield Ag News that the lower water levels are slowing business with some of the United States’ largest trade partners.

The slowdown is impacting both imports and exports since domestic producers export a lot of corn and soybeans to Peru and Chile. And, in return, those countries send fruits, vegetables, and aquaculture back to the U.S.

This year is the second-driest year on record in the Canal’s history and ultimately became the first year to require trade restrictions due to extremely low water levels.

Currently, only 22 ships are allowed to pass through the waterway each day. The Panama Canal Authority is set to increase that number to 24 on January 16 if weather conditions are favorable.

Related Stories
Expanded global trade access boosts long-term export demand potential for U.S. ag products.
For the broader agricultural industry, a railroad antitrust case in Kansas could lead to the dismantling of legacy regulatory shields, creating a more fluid, market-driven transportation grid that prioritizes moving crops efficiently over protecting historic rail monopolies.
Ranger Road Fire has burned 283,000 acres across Kansas and the Oklahoma Panhandle and is nearing containment, as ranchers begin assessing cattle and infrastructure losses as they look toward recovery.
Agriculture avoided major disruptions, but trade uncertainty remains elevated.
The long-term viability of a ranching operation often hinges on how effectively its owners navigate the overlapping layers of IRS regulations, state tax incentives, and USDA disaster programs.
Galynn Beer of Tidal Grow Agri-Science joined us to discuss challenges in fertility management, the benefits of Align-N, and what growers can expect at Commodity Classic next week.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

New research shows that most farmers do not have a formal resiliency plan in place. Devin Fuhrman highlights how Nationwide’s Farm Risk Ready initiative supports farmers in building stronger, more resilient operations.
The American Coalition for Ethanol reacts as the Farm Bill heads to a full House vote — while ethanol expansion, including year-round E15, is left out — as well as the USDA’s pursuit of global markets for ethanol.
Hurd joined this week’s Champions of Rural America to review the proposed Farm Bill moving through the House and discuss its potential impact on rural communities and farmers across the country.
Global food prices rose slightly in the latest FAO Food Price Index as vegetable oils, cereals, and meat increased, offsetting declines in dairy and sugar.
Mexican livestock officials are emphasizing surveillance and inspection systems to preserve access to the U.S. cattle export market. Texas’ Bovina Feeders explains the rising stakes as the border stays closed.
University of Arkansas’ Allen Szalanski discusses a news study on rice stink bugs, what it could mean for farmers, and pest management strategies for the future.