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
North Carolina Farmer Trey Braswell joined us to discuss the White House Easter Egg Roll, his company’s continued involvement, and efforts to expand access to eggs nationwide.
Researchers with the University of Tennessee Institute of Agriculture are studying the clouded plant bug, which causes millions of dollars in damage to crops such as corn, soybeans, and cotton growing across the state.
Margin pressure and competitiveness concerns are shaping cautious outlooks.
Fewer DEF-related shutdowns could mean more uptime during planting and harvest seasons.
Widespread drought and extreme weather leave producers managing limited resources
Shaun Haney, host of RealAg Radio, outlines potential risks for agriculture as negotiations continue between the two countries

LATEST STORIES BY THIS AUTHOR:

The trustees’ 2025 annual report, released June 18, cited a law enacted this year as the primary reason why the funds are projected to run out a year earlier than previously projected.
Check out some of the livestream highlights from Elimination Match 2 of the B&W Trailer Hitches Challenge Cup Presented by 5-hour ENERGY®, the first of four events in the second year of the Fishing Clash Team Series.
Bass Pro anglers Ron Nelson and Martin Villa of Team O’Reilly Auto Parts secured the win in Elimination Match 2 of the B&W Trailer Hitches Challenge Cup, thanks to a dominant final frame on the lower St. Clair River.
Check out some of the livestream highlights from Challenge Elimination Round 1 on St. Claire Lake in Port Huron, Michigan. This is the first of four Cups in the Fishing Clash Team Series, which you can catch LIVE only on RFD-TV.