Research Identifies Farmer Benefit of Dredging the Lower Mississippi River
- Business & Finance
The Soy Transportation Coalition (SCT) recently presented the research that identifies farmer benefit of dredging the Lower Mississippi River.
The STC research highlights that shipping costs for soybeans from Mississippi Gulf export terminals would decline 13 cents per bushel ($5 per metric ton) if the lower Mississippi River is dredged to 50 ft.
The research also highlights the impact on interior basis – the difference between the local price a farmer receives and the market value established by the Chicago Board of Trade – for soybeans in 31 states if the lower Mississippi River shipping channel is dredged.
“One of the main reasons soybean farmers in my area of the country can remain profitable is due to our access to the Ohio and Mississippi Rivers,” said Gerry Hayden, a soybean farmer from Calhoun, Kentucky, and chairman of the Soy Transportation Coalition. “Our research highlights that dredging the lower Mississippi River will improve the supply chain for those soybeans being loaded onto the river and eventually exported from the Mississippi Gulf region. This more efficient supply chain will translate to more profitable soybean farmers.”
While the paper projects Illinois receiving the largest benefit from dredging the lower Mississippi River, the STC research estimates farmers in the 31 evaluated states will annually receive an additional $461 million for their soybeans due to dredging the lower Mississippi River to 50 ft.