Friday, December 14, 2012

Drought humbles the Mighty Mississippi

The 2012 drought has already wreaked havoc on the agriculture industry and shows no signs of stopping. Now, the industry prepares for another drought-inflicted blow.

Due to the decrease in rainfall over the past year, the Mississippi River is on the verge of shutting down for nearly 200 miles spanning from Cairo, Ill. to St. Louis, Mo.

Currently, the Mississippi River is holding at 13 feet deep and near record level lows, but if the water level drops below nine feet deep, it will be forced to close to barge traffic. Shallow waterways prevent barges from moving up and down the river. Andrew Walmsley, American Farm Bureau transportation specialist, estimates on Newsline that at the current rate, the river will shut down in the middle of December. The National Weather Service, on the other hand, predicts the water levels won’t possibly drop below nine feet until January; either way, a halt in barge traffic in December and January could affect the movement of approximately $7 billion in cargo.

Source: http://stltoday.mycapture.com/mycapture/enlarge.asp?image=42849928&event=1503554&CategoryID=38578

The United States Department of Agriculture estimates the potential economic damage from a shutdown of the Mississippi River could range from $60 billion to $100 billion, meaning the damage could be more costly to the economy than that of Hurricane Sandy. Additionally, this would affect more than 20,000 U.S. jobs across industries including agriculture, transportation and manufacturing just to name a few.

The Mississippi River is essential to the agriculture industry for transportation of grain and fertilizer. The American Farm Bureau projects approximately 300 million bushels of grain and oilseeds would be delayed with the shutdown.

"It would be difficult to transport grain to ports for shipment overseas, get road salt upriver and deliver fertilizer to the Midwest for spring planting. Putting fertilizer on trucks or trains instead of cheaper barges would increase farmers' prices," said Rod Weinzierl, the Executive Director of Illinois Corn Growers Association, in a USA Today article.

Kathy Mathers, a spokeswoman for the Fertilizer Institute, shared in a New York Times article that about half of fertilizer sent to the Midwest for the spring travels up the Mississippi River. Other transportation options such as trucking and rail cars don’t have enough means to ship the large quantities that will be needed.

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