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
With deep agricultural ties, Dr. Carrie Castille, a South Louisiana native, aims to support ULM student success and connect rural communities.
Herd growth and exports supporting dairy outlook.
Strong exports continue to support corn despite larger supplies.
Crush demand is supporting soybeans despite biofuel uncertainty.
Export growth remains key for grain profitability.
RealAg Radio host Shaun Haney explains how conflict in the Middle East is affecting spring planting as farmers navigate the evolving situation.

LATEST STORIES BY THIS AUTHOR:

The Livestock Conservancy joins us in the RFD-TV Studio to discuss how protecting heritage-breed poultry is essential to resilient food systems and the preservation of agricultural traditions.
Texas A&M livestock economist Dr. David Anderson joins Tony St. James to discuss the geopolitical tensions and U.S.-Mexico border closure that are leading to sharp swings in the cattle market.
Arizona producers are proving that desert farming and water conservation can coexist through technology, reuse, and efficiency — reinforcing both food security and environmental stewardship.
Caleb Ragland, president of the American Soybean Association (ASA), shares his reaction to news of soybean sales to China, which is considered both “welcome news” and a return to near-normal trade relations.
Rabobank’s outlook signals a tightening margin environment, emphasizing the need for cost control, trade stability, and clearer policy signals heading into 2026.
Treat succession like any major crop — plan early, document clearly, and calibrate cash flow so the next generation can succeed.