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
Strong crush demand and rising ethanol production are pressuring feedstocks, as traders monitor storage risks and supply chain uncertainty and await the upcoming January WASDE report.
The U.S. Meat Export Federation plans to expand its global market presence in the New Year and says it is focusing its appeal on the growing middle class worldwide.
Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
Cotton demand depends on demonstrating performance and reliability buyers can rely on, not messaging alone.
A look at the legislative year ahead as lawmakers return to Washington with a slate of trade concerns to tackle in 2026—from new Chinese tariffs on beef imports to the USMCA review this summer.
Cuba remains a small but dependable, cash-only outlet for U.S. grain and food products.
Expanding cheese exports are strengthening U.S. milk demand and reinforcing global competitiveness.
Record pace corn exports are helping stabilize prices despite softer global grain production and ongoing supply competition.