AccuWeather forecasts economic losses of $20 billion from the Mississippi River’s historically low water levels. Senior Meteorologist Paul Pastelok says the low levels have caused barge traffic to come to a near standstill, and he doesn’t expect any significant change in the levels until early next year.
“We do have a couple of predicted storm events in the near future, but they don’t produce a whole lot of rainfall,” Pastelok said. “This is going to be a slow process of returning to what levels we want to be at so that these barges can go up and down the Mississippi River.”
According to Pastelok, commerce on the river accounts for 92 percent of the country’s ag exports.
“We’re talking (ag) commodities going down, but we’re also talking about products like petroleum or fertilizer moving upriver,” Pastelok said.
Ag Secretary Tom Vilsack commented recently that the impact on barge transportation comes as agriculture continues to face supply chain challenges. “The Corps of Engineers is obviously monitoring this,” Vilsack said. “I think that hopefully over time we get to see a more regular flow and we get to see those crops be able to move to market quickly.”
Unfortunately, the low water levels on the Mississippi River are likely to persist this winter as drier-than-normal weather is expected across the southern United States and Gulf Coast.
Editor’s Take:
We recently reported on the slowdowns in barge traffic with the hope that perhaps some relief was forthcoming. The timing could not be worse as harvest is in full swing and agriculture depends on moving those commodities to larger export facilities in the Gulf of Mexico region. Such hopes are now dashed by the reality that this serious threat to U.S. agriculture is not only likely to continue but could have severe economic impacts to the price of goods and services that depend on that major river for low-cost transportation in normal times. Farmers and grain shippers will do everything in their power to mitigate the impact from this truly unfortunate natural phenomenon. In the meantime, you could help farmers/ranchers overcome some of that increased cost by showing them AgPack®! Savings of up to $32,000 in exclusive rebates and discounts, will help you seal the deal.
