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
National Corn Growers Association Chief Economist Krista Swanson discusses corn supply pressures, market fundamentals, policy considerations, and producer outlook for the year ahead.
Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.
A disciplined, breakeven-based marketing plan helps protect margins and reduce risk, even when markets remain unpredictable.
Alissa White with American Farmland Trust joined us to provide insight into climate resilience efforts and strategies to help farmers manage weather-related risks.
RFD News correspondent Frank McCaffrey reports from Texas on the ongoing water dispute and its implications for U.S. farmers.
RealAg Radio host Shaun Haney discusses the latest developments in the Supreme Court, trade tariffs, and the future of the USMCA under President Donald Trump.

LATEST STORIES BY THIS AUTHOR:

As spring migration ramps up, USDA officials warn farmers about rising bird flu risks and urge stronger biosecurity measures. Resources are available through APHIS to help protect livestock.
Herd growth and exports supporting dairy outlook.
Strong exports continue to support corn despite larger supplies.
Crush demand is supporting soybeans despite biofuel uncertainty.
Bigger stocks may limit upside in cotton prices.
Export growth remains key for grain profitability.