Without Additional Investment, U.S. Soybeans Lose Competitive Advantage

(WASHINGTON, DC) How much is deteriorating infrastructure costing U.S. agriculture? According to a study from Informa Economics, U.S. soybeans destined for China currently have a $5.35 per metric ton advantage over Brazilian soybeans. If the United States fails to invest more into the aging riverways, that advantage declines significantly. With increased investment, however, the study projected barge rates would decrease, and the competitive advantage expands to $22.55 per metric ton over Brazil with all other items unchanged. Meanwhile, lock-and-dam performance is declining under current investment trends, the study found. Lagging infrastructure maintenance and improvement needs have resulted in more frequent delays in barge traffic, with the percentage of vessels delayed increasing from 35 percent in 2010 to 49 percent in 2017. Delays can cost up to $739 per hour for an average tow, or more than $44 million per year. The National Grain and Feed Association (NGFA) describes the study as “a wake-up call” to the White House Office of Management and Budget and Congress to make funding for the Navigation and Ecosystem Sustainability Program (NESP) available this year, “and to ensure growing investments are continued and expedited in the tremendous natural resource that America’s inland waterways represent.” Under NESP, seven locks (five on the Upper Mississippi River and two on the Illinois Waterway) would be expanded to 1,200 feet with dual chambers to accommodate larger barges, saving time and natural resources.