2. Why Should Farmers Care About Transportation?
…Because our international competitiveness depends on it.
Costs of transporting soybeans: U.S. vs. Brazil (per metric ton; 4th quarter, 2011)
Davenport, Iowa to Shanghai North Mato Grosso to Shanghai
Truck - $10.22 Truck - $115.05
Barge - $28.91 ---------
Ocean - $55.33 Ocean – $49.65
Total Transportation - $94.46 Total Transportation - $164.70
Farm Value - $425.00 Farm Value - $358.24
Cost to Customers - $519.46 Cost to Customer - $522.94
Trans. as % of Customer Cost – 18.18% Trans. as % of Customer Cost – 31.50%
Source: USDA
3. Why Should Farmers Care About Waterways?
…Because farmer profitability is impacted by it.
4. The Soy Transportation Coalition – Farmer funded
& farmer led
Established in 2007. Comprised of 11 state soybean councils, the
United Soybean Board, American Soybean Association. National
Grain & Feed Association & National Oilseed Processors: ex-officio
members.
5. Panama Canal Expansion – Opportunity for increased
efficiency, or are we shifting the bottleneck?
Pre Panama Canal Expansion (70 miles)
Post Panama Canal Expansion (111 miles)
Post Panama Canal Expansion (161 miles)
6. America’s Locks & Dams: A Ticking Time Bomb
for Agriculture?
Volume of Commodity Flows (2010)
Illinois River
Grain: 24 million tons (20%)
Coal: 13 million tons (11%)
Petroleum: 19 million tons (16%)
Mississippi River
Grain: 236 million tons (48%)
Coal: 51 million tons (10%)
Petroleum: 19 million tons (4%)
Ohio River
Grain: 49 million tons (5%)
Coal: 614 million tons (59%)
Petroleum: 58 million tons (6%)
7. America’s Locks & Dams: A Ticking Time Bomb
for Agriculture?
Cost to Agricultural Producers of Lock Closures
($ millions):
Lock 2 Weeks 1 Month 3 Months 1 Year
LaGrange $2.7 $4.8 $21.2 $30.4
Lock 20 $2.8 $4.9 $15.4 $44
Lock 25 $2.8 $4.9 $15.4 $44.1
Markland $0.89 $1.02 $3.8 $4.9
Lock 52 $2.9 $3.1 $11.9 $13.9
8. America’s Locks & Dams: A Ticking Time Bomb
for Agriculture?
• Nation’s lock & dam
inventory is underfunded
• Current financing system
guarantees cost overruns &
poor stewardship (Olmstead,
Monongahela, e.g.)
• Gate failures – Markland
Lock (September ‘09;
Greenup Lock – February
‘10)
9. Is it time to ask some tough questions?
Argument #1: How we allocate money is just
as important as how much money we
allocate.
Argument #2: A predictably good inland
waterway system is better than a
hypothetically great one.
10. Thank You
Soy Transportation Coalition
1255 SW Prairie Trail Parkway
Ankeny, Iowa 50023
515-727-0665
515-251-8657 (fax)
www.soytransportation.org
Mike Steenhoek, Executive Director
msteenhoek@soytransportation.org
