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.
How does a robot milk a cow?
October 18, 2023 09:00 AM
·
The machines do all the work at Hickory Hill Milk in South Carolina, where the pampered cows get on-demand service. They make a premium cream line of milk you still have to shake. It is so good it is used to make the world-famous Clemson blue cheese.
October 17, 2023 01:55 PM
·
The failure of a grain elevator can cause large problems for farmers and for the local community it serves. A farmer who knows their rights and where they stand if an elevator fails can be in a better position than those farmers who aren’t as well informed. That is the topic of today’s blog post by RFD-TV Legal Contributor Roger A. McEowen.
October 04, 2023 02:46 PM
·
A recent news story involving a group of farmers in Mississippi reveals the potential downside of selling grain under a deferred payment contract. The risk of deferred payment ag commodity sales and what can be done for protection—that is the topic of today’s blog post.
October 02, 2023 03:12 PM
·
The USDA’s latest crop forecast for corn and soybean production will impact U.S. producers as well as make an impact on global trade.
September 20, 2023 12:25 PM
·
September 14, 2023 12:52 PM
Meet the kids behind the Summer Market Lamb Show in Montgomery County, Tennessee, and hear why they would rather spend their Saturdays showing lambs than doing anything else!
August 04, 2023 11:40 AM
·
Researchers at Florida Atlantic University’s
Harbor Branch Oceanographic Institute found human sewage, not fertilizer, is mainly responsible for dangerous nitrogen levels in Florida’s Indian River Lagoon.
