MFA Incorporated
River transportation woes

The National Corn Growers Association continues the fight for lock and dam updates on the Mississippi and Illinois rivers. After eight years and $57 million, the U.S. Army Corps of Engineers still hasn't finished its study. The delay costs farmers money and opportunity.

The National Corn Growers Association (NCGA) has strongly encouraged Congress to move immediately to complete the navigation study by the U.S. Army Corps of Engineers and upgrade locks and dams on the Mississippi and Illinois rivers.

"Delays by the U.S. Army Corps of Engineers have already given Brazil, Argentina and China an eight-year, $57 million head start in the race for future grain markets," said Tim Burrack, Arlington, Iowa, farmer and member of the NCGA Production and Stewardship Action Team. "For over 20 years, farmers have indirectly paid a fuel tax to replace locks and where are we? The U.S. Army Corps of Engineers has spent eight years and $57 million, and they have absolutely nothing to show for it."

Burrack testified before the U.S. House of Representatives' Mississippi River Caucus in the Cannon House Office Building on Capitol Hill. The caucus, a bipartisan group of representatives whose districts border the Mississippi River, meets regularly to discuss common issues relating to the river.

"Every year more than 1.25 billion bushels of our nation's corn crop move on the upper Mississippi and Illinois rivers," he told the representatives. "I can clearly tell you that what impacts one billion bushels of corn, impacts the entire 10-billion-bushel corn industry. Lock improvements will determine our ability to compete in global grain markets."

Burrack's testimony discussed the findings of the National Academy of Sciences' review of the economic model the corps used to analyze the need for river improvements. The panel of independent economists confirmed NCGA's assertions. He noted that the corps didn't prove its assumptions about the variation in corn shipments relative to barge rates. This number was the center of the "whistleblower" complaint.

But he also criticized the National Academy of Sciences study for its assumptions and conclusions on ways to improve river efficiency without remodeling locks and dams. One theory is that the barge delays will evaporate if the towing companies will only follow better scheduling, training and trading lockage permits.

"Corn moves to market when the market demands it, not when it is convenient to transit locks," he emphasized. When the global market demands corn or soybeans, grain companies and farmers respond by shipping the grain to the ports.

"If I ship my corn when the market doesn't demand it, someone will have to store it, and that storage comes at a cost, which is reflected in a lower price. Under this scheduling plan, grain will be shipped not when the market wants it, but when an inefficient lock dictates easy transit."

Finally, he addressed the idea of trading lockage permits and greater cooperation among barge lines to ease congestion. "The advocates of this plan forget one of the keys to barges' low-cost nature is competition," he said. "The NAS panel report also fails to recognize that grain companies compete against each other for export sales, for farmers' grain and for transportation. Competition is good; it keeps people honest; and it helps us all. If barge and grain companies start cooperating to ease congestion, when does cooperation end and collusion begin?

"It is time to complete this (navigation) study and to expand the capacity of this vital national infrastructure," Burrack emphasized as he concluded his testimony. "Expand these locks now, so that farmers and American business can compete."

 MAY 2001
 Features:
 Wildlife-friendly farming
 Missouri's Ag Chief
 Sericea lespedeza
 River transportation woes
 Cashing in on
 farmers markets
 Columns:
 Country Corner
 Nutrition
 Country Humor
 More Country Humor
 Slaw Recipes
 Viewpoint
 

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