Restrictions, Freight Costs Pressure Grain Movement on the Mississippi River

Transportation challenges are mounting as droughts lower Mississippi River levels and push freight rates higher.

MEMPHIS, Tenn. (RFD-TV) — Low Mississippi River levels are disrupting the nation’s grain highway to world markets for the fourth consecutive year. Persistent drought has once again narrowed the navigation channel, raising concerns for farm income as harvest ramps up.

The U.S. Coast Guard has tightened restrictions, limiting southbound drafts to 10.5 feet near Memphis and capping tow sizes at six barges wide. Northbound traffic faces even stricter limits, with drafts reduced to 10 feet and shorter tows. The U.S. Army Corps of Engineers has begun dredging near Memphis and Hickman, KY, to keep traffic moving.

Grain barge movements for the week ending September 13 totaled 252,000 tons, down 30 percent from the previous week and 32 percent below last year. Ocean shipping costs also climbed, with Gulf-to-Japan rates at $57.25 per metric ton—up 25 percent since January—while Pacific Northwest rates rose to $29.75. Rail volumes softened as well, with 22,201 grain carloads originating the week of September 6, down three percent from last year.

Tony’s Farm-Level Takeaway: River restrictions and rising freight rates may delay shipments and increase costs for grain farmers, underscoring the importance of monitoring logistics as harvest accelerates.

American Farm Bureau Federation (AFBF) economist Danny Munch joined us to break down what these conditions mean for grain transportation and producers across the region.

In his interview with RFD-TV News, Munch explained why barges are such a critical piece of the grain supply chain, how this year’s conditions have already slowed shipments, and the broader impact on farmers who depend on efficient river transport. Munch also emphasized that prolonged disruptions on the Mississippi not only raise costs but also threaten the competitiveness of U.S. grain in world markets.

Related Stories
Cotton acres slipping as competing crops gain ground.
Rising Chinese feed output — especially for swine — signals sustained demand for protein meals and feed inputs, even when meat production growth appears modest.
The USDA’s Farm Service Agency (FSA) has issued final Emergency Livestock Relief Program (ELRP) payments totaling more than $1.89 billion.
Nitrogen and phosphate markets are tightening ahead of spring, keeping fertilizer costs elevated while crop prices lag.
RealAg Radio host Shaun Haney talks about the U.S. House’s latest vote to roll back tariffs on Canada and the ongoing discussions surrounding North American trade.
Corn demand remains supportive, but weaker soybean buying limits overall export momentum.

LATEST STORIES BY THIS AUTHOR:

Farm Bureau Economist Dr. Faith Parum explains the role farm safety net programs play in supporting farm finances as growers head into the 2026 planting season.
Wed, 3/18/26 – 7:30 PM ET – Build better financial habits with tips from AARP
Corn demand is rising thanks to ethanol expansion, yet year-round E15 remains missing from the Farm Bill—leaving farmers questioning the policy gap.
Cuban economic reforms could open up nearby export demand, but policy execution remains the key uncertainty.
Bipartisan momentum builds, but final farm policy remains unsettled.
Real Ag’s Shaun Haney explains how farmers are approaching risk management and the steps they’re taking to strengthen profitability through better financial planning.