Download - Land of Two Rivers
Soy Transportation CoalitionMoving Iowa Forward Conference
April 24, 2012
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 - $522.94
Trans. as % of Customer Cost – 18.18% Trans. as % of Customer Cost – 31.50%
Source: USDA
Why Should Farmers Care About Waterways? …Because farmer profitability is impacted by it.
The Soy Transportation Coalition – Farmer funded & farmer led Established in 2007. Comprised of 11 state soybean councils, the
United Soybean Board, American Soybean Association. National Grain & Feed Association & National Oilseed Processors: ex-officio members.
Panama Canal Expansion – Opportunity for increased efficiency, or are we shifting the bottleneck?
Pre Panama Canal Expansion (70 miles)
Post Panama Canal Expansion (111 miles)
Post Panama Canal Expansion (161 miles)
America’s Locks & Dams: A Ticking Time Bomb for Agriculture?Volume of Commodity Flows (2010) Illinois River
Grain: 24 million tons (20%) Coal: 13 million tons (11%) Petroleum: 19 million tons (16%)
Mississippi River Grain: 236 million tons (48%) Coal: 51 million tons (10%) Petroleum: 19 million tons (4%)
Ohio River Grain: 49 million tons (5%) Coal: 614 million tons (59%) Petroleum: 58 million tons (6%)
America’s Locks & Dams: A Ticking Time Bomb for Agriculture?
Cost to Agricultural Producers of Lock Closures
($ 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
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)
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.
Thank YouSoy Transportation Coalition
1255 SW Prairie Trail Parkway
Ankeny, Iowa 50023
515-727-0665
515-251-8657 (fax)
www.soytransportation.org
Mike Steenhoek, Executive Director