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
Sen. Roger Marshall, a founding member and chairman of the Make America Healthy Again caucus, joined us with his thoughts on the commission’s latest report and the key ag-related issues.
Grain shippers face lower freight values thanks to weak soybean exports and strong rail service, but barge traffic and forward Gulf loadings suggest continued uncertainty as harvest ramps up.
The Fertilizer Research Act, reintroduced by Sens. Grassley, Ernst, and Baldwin, would direct the USDA to study and publish public reports on competition and pricing trends in the fertilizer market.
Producers may need to prepare for margin pressure in livestock feeding, while dairy farmers could benefit from stronger product demand.
Farmers await concrete trade commitments from China. Until then, export prospects for soybeans, corn, and sorghum remain uncertain against strong South American competition.
National Sorghum Producers CEO Tim Lust said farmers face a challenging year with strong supply, murky trade conditions, and uncertain access to their largest market: China.

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:

Rooster is a full-time farmhand, right-hand man on Shawn Raff’s cattle and dairy operation in Eatonton, Georgia.
While the 2018 Farm Bill received an extension under the “One, Big, Beautiful Bill” Act, the National Pork Producers Council wants lawmakers to do more to support the sector.
Kip Eideberg with the Association of Equipment Manufacturers details its campaign spotlighting the people who build equipment vital to farming and food manufacturing.
Buzzard discusses her upcoming appearance on the Dirt Diaries podcast with host Kirbe Schnoor and the importance of sharing authentic stories about agriculture.
Dr. Jeffrey Gold, President of the University of Nebraska, joined us to break down what telehealth entails and which conditions can be managed through remote appointments.
Improved export prospects and higher crop prices strengthened future expectations despite continued caution about spending.