Analyzing Three Investment ScenariosAugust 2019

Barge tow on Chain of Rocks Canal ofMississippi River above St Louis

Importance of Inland Waterways to US Agriculture

This material was produced for the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS) through Cooperative Agreement Number 18-TMTSD-TN-0011 Informa Agribusiness Consulting (Informa) has used the best and most accurate information available to complete this study For more information and to learn more aboutInforma Agribusiness Consulting please visit Agribusinessintelligencecom A more detailed report can be found on USDA AMS website

2

Density of US Corn and Soybean Production Areas in Proximity to the Navigable Waterways on the Mississippi River System Depicted in Map

Corn and Soybean Production(Million Bushels)

10 and Greater5 to 1025 to 51 to 25Less than 1

Lock amp Dam Projects by Amount($ Million)

River Grain Elevators (227)

River City

500 and Greater

Less than 50

100 to 50050 to 100

Navigable WaterwaysDredging Lower Mississippi River to 50-feet

Americarsquos Heartland Requires a Reliable Transportation Corridor

LOSS OF GLOBAL COMPETITIVENESS

REDUCED TRANSPORTATION

CAPACITY

HIGHERFREIGHT RATES

LOWER FARMINCOME

Leads to lower effective transportation capacity

Leads to higher freight rates more dependency on

truck and rail

Leads to lower farm income more road congestion more

rail service problems

Leads to lower US economic activity

Without infrastructure investment the farmer is less competitive globallyThe background photo depicts broken wickets at Locks and Dam 52 along the Ohio

River The Corps of Engineers replaced Locks and Dam 52 and 53 with Olmsted Locksand Dam in 2018 At the time of this photo the wickets exceeded their lifespan bynearly 40 years

Infrastructure is critical to competitivenessof US farmers

3

Locks and Dam 15 located in Rock Island Illinois

US Agriculturersquos Competitiveness

Depends on Inland Waterways

INADEQUATE INFRASTRUCTURE

STATUS QUO INVESTMENT

REDUCED INVESTMENT

Sales

GDP

Employment

Sales

GDP

Employment

Total Cumulative Economic Impact to 2045

Total Cumulative Economic Impact to 2045

472000

$258 B

$496 B

323000

$115 B

$220 B

Current funding trends continue to 2045 for new construction major rehabilitation and performing routine maintenance (totaling $296B)

INCREASED INVESTMENTIncreased funding to construct all authorized projects ($63B) in 10 years including increased funding to 2045 to rehabilitate existing locks and perform routine maintenance (totaling $359B)

Gradually decreasing funding through 2045 for operation and maintenance leading to decreased reliability No construction of authorized projects (totaling $153B)

Sales

GDP

Employment 395000

Total Cumulative Economic Impact to 2045

$185 B

$354 B

uarr $72 B

uarr 39

uarr $142 B

uarr 40

darr 72000

darr 18

darr $70 B

darr 38

darr $133 B

darr 384

uarr 77000

uarr 20

Increase Over Status Quo

uarr $63 Billion

Decrease From Status Quo

darr $143 Billion

Inland Waterway Investment Grows American Economy

FARM PRODUCT VOLUME

Total Cumulative Market Value Impact to 2045

The inland navigable waterways are essential to moving farm products to grain export elevators along the Gulf

US corn and soybean farmers are the most efficient in the world Our countryrsquos waterways and multimodal transportation network provides a competitive edge in global markets

Status Quo 1608

Total Cumulative Volume Impact to 2045 (Million Tons)

Increased 2167

Reduced 864darr 744darr 46

MARKET VALUE

IncreasedInvestment+$39 Billion

Reduced Investment-$58 Billion

Range of$97 Billion

5

uarr 559uarr 35

More Investment = More Farm Exports Less Investment = Less Farm Exports

SOYBEAN COST TO SHANGHAI CHINA

REDUCEDINVESTMENT

2045

INCREASED INVESTMENT

2045

DAVENPORT IA2018

NORTH MATO GROSSO BRAZIL

2018

Units are in $MT

Infrastructure Investment is critical for competitiveness of the US farmer Infrastructureinvestment leads to higher transportation capacity higher transportation capacity leadsto lower freight rates lower freight rates lead to higher farmer returns Withoutinfrastructure investment both the US farmer and the American economy lose to globalcompetitors

Curr

ent C

ost

Inve

stm

ent E

ffect

s

$31355$29343

$1210

$7937

$2428

$4752

$3000

$39745$40280

$31355 $31355

$1210 $1210

$2010

$3352

$3450

$4752$38025

$40669

darr$418

darr17

darr4

uarr$924

uarr38

uarr2

darr$1302

darr27

$31355

$1210

$2660

$4752

$39977 uarr05

uarr$232

uarr9

STATUS QUO2045

6

Increased Investment Enhances Competitiveness by

Reducing Shipping Costs

bull Higher and consistent inland waterway investment is needed to ensure the long-term prosperity of US agriculture

bull The Navigation amp Ecosystem Sustainability Program (NESP) is essential for the competitiveness of the heartland corridor ndash its Pre-construction Engineering amp Design (PED) funding is necessary before construction can begin Pending PED funding for NESP is time-sensitive

China investment in Brazil hit seven-year high in 2017

httpswwwreuterscomarticleus-brazil-china-investmentchina-investment-in-brazil-hit-seven-

year-high-in-2017-idUSKBN1F7387

Brazil wants China to invest in its infrastructure

httpsfinanceyahoocomnewsbrazil-wants-china-invest-infrastructure-194842132html

China to invest $50bn in Brazil infrastructure

httpswwwbbccomnewsbusiness-32747454

RECENT NEWS HEADLINES

7

SOYBEAN TRANSPORTATION COSTS TO CHINA US vs BRAZIL

40

60

80

100

120

140

160

180

200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$M

etric

Ton

Davenport North Mato Grosso

AMERICAN INFRASTRUCTURE IMPERATIVE

Will the US Retain itsCompetitive Advantage

2

Density of US Corn and Soybean Production Areas in Proximity to the Navigable Waterways on the Mississippi River System Depicted in Map

Corn and Soybean Production(Million Bushels)

10 and Greater5 to 1025 to 51 to 25Less than 1

Lock amp Dam Projects by Amount($ Million)

River Grain Elevators (227)

River City

500 and Greater

Less than 50

100 to 50050 to 100

Navigable WaterwaysDredging Lower Mississippi River to 50-feet

Americarsquos Heartland Requires a Reliable Transportation Corridor

LOSS OF GLOBAL COMPETITIVENESS

REDUCED TRANSPORTATION

CAPACITY

HIGHERFREIGHT RATES

LOWER FARMINCOME

Leads to lower effective transportation capacity

Leads to higher freight rates more dependency on

truck and rail

Leads to lower farm income more road congestion more

rail service problems

Leads to lower US economic activity

Without infrastructure investment the farmer is less competitive globallyThe background photo depicts broken wickets at Locks and Dam 52 along the Ohio

River The Corps of Engineers replaced Locks and Dam 52 and 53 with Olmsted Locksand Dam in 2018 At the time of this photo the wickets exceeded their lifespan bynearly 40 years

Infrastructure is critical to competitivenessof US farmers

3

Locks and Dam 15 located in Rock Island Illinois

US Agriculturersquos Competitiveness

Depends on Inland Waterways

INADEQUATE INFRASTRUCTURE

STATUS QUO INVESTMENT

REDUCED INVESTMENT

Sales

GDP

Employment

Sales

GDP

Employment

Total Cumulative Economic Impact to 2045

Total Cumulative Economic Impact to 2045

472000

$258 B

$496 B

323000

$115 B

$220 B

Current funding trends continue to 2045 for new construction major rehabilitation and performing routine maintenance (totaling $296B)

INCREASED INVESTMENTIncreased funding to construct all authorized projects ($63B) in 10 years including increased funding to 2045 to rehabilitate existing locks and perform routine maintenance (totaling $359B)

Gradually decreasing funding through 2045 for operation and maintenance leading to decreased reliability No construction of authorized projects (totaling $153B)

Sales

GDP

Employment 395000

Total Cumulative Economic Impact to 2045

$185 B

$354 B

uarr $72 B

uarr 39

uarr $142 B

uarr 40

darr 72000

darr 18

darr $70 B

darr 38

darr $133 B

darr 384

uarr 77000

uarr 20

Increase Over Status Quo

uarr $63 Billion

Decrease From Status Quo

darr $143 Billion

Inland Waterway Investment Grows American Economy

FARM PRODUCT VOLUME

Total Cumulative Market Value Impact to 2045

The inland navigable waterways are essential to moving farm products to grain export elevators along the Gulf

US corn and soybean farmers are the most efficient in the world Our countryrsquos waterways and multimodal transportation network provides a competitive edge in global markets

Status Quo 1608

Total Cumulative Volume Impact to 2045 (Million Tons)

Increased 2167

Reduced 864darr 744darr 46

MARKET VALUE

IncreasedInvestment+$39 Billion

Reduced Investment-$58 Billion

Range of$97 Billion

5

uarr 559uarr 35

More Investment = More Farm Exports Less Investment = Less Farm Exports

SOYBEAN COST TO SHANGHAI CHINA

REDUCEDINVESTMENT

2045

INCREASED INVESTMENT

2045

DAVENPORT IA2018

NORTH MATO GROSSO BRAZIL

2018

Units are in $MT

Infrastructure Investment is critical for competitiveness of the US farmer Infrastructureinvestment leads to higher transportation capacity higher transportation capacity leadsto lower freight rates lower freight rates lead to higher farmer returns Withoutinfrastructure investment both the US farmer and the American economy lose to globalcompetitors

Curr

ent C

ost

Inve

stm

ent E

ffect

s

$31355$29343

$1210

$7937

$2428

$4752

$3000

$39745$40280

$31355 $31355

$1210 $1210

$2010

$3352

$3450

$4752$38025

$40669

darr$418

darr17

darr4

uarr$924

uarr38

uarr2

darr$1302

darr27

$31355

$1210

$2660

$4752

$39977 uarr05

uarr$232

uarr9

STATUS QUO2045

6

Increased Investment Enhances Competitiveness by

Reducing Shipping Costs

bull Higher and consistent inland waterway investment is needed to ensure the long-term prosperity of US agriculture

bull The Navigation amp Ecosystem Sustainability Program (NESP) is essential for the competitiveness of the heartland corridor ndash its Pre-construction Engineering amp Design (PED) funding is necessary before construction can begin Pending PED funding for NESP is time-sensitive

China investment in Brazil hit seven-year high in 2017

httpswwwreuterscomarticleus-brazil-china-investmentchina-investment-in-brazil-hit-seven-

year-high-in-2017-idUSKBN1F7387

Brazil wants China to invest in its infrastructure

httpsfinanceyahoocomnewsbrazil-wants-china-invest-infrastructure-194842132html

China to invest $50bn in Brazil infrastructure

httpswwwbbccomnewsbusiness-32747454

RECENT NEWS HEADLINES

7

SOYBEAN TRANSPORTATION COSTS TO CHINA US vs BRAZIL

40

60

80

100

120

140

160

180

200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$M

etric

Ton

Davenport North Mato Grosso

AMERICAN INFRASTRUCTURE IMPERATIVE

Will the US Retain itsCompetitive Advantage

LOSS OF GLOBAL COMPETITIVENESS

REDUCED TRANSPORTATION

CAPACITY

HIGHERFREIGHT RATES

LOWER FARMINCOME

Leads to lower effective transportation capacity

Leads to higher freight rates more dependency on

truck and rail

Leads to lower farm income more road congestion more

rail service problems

Leads to lower US economic activity

Without infrastructure investment the farmer is less competitive globallyThe background photo depicts broken wickets at Locks and Dam 52 along the Ohio

River The Corps of Engineers replaced Locks and Dam 52 and 53 with Olmsted Locksand Dam in 2018 At the time of this photo the wickets exceeded their lifespan bynearly 40 years

Infrastructure is critical to competitivenessof US farmers

3

Locks and Dam 15 located in Rock Island Illinois

US Agriculturersquos Competitiveness

Depends on Inland Waterways

INADEQUATE INFRASTRUCTURE

STATUS QUO INVESTMENT

REDUCED INVESTMENT

Sales

GDP

Employment

Sales

GDP

Employment

Total Cumulative Economic Impact to 2045

Total Cumulative Economic Impact to 2045

472000

$258 B

$496 B

323000

$115 B

$220 B

Current funding trends continue to 2045 for new construction major rehabilitation and performing routine maintenance (totaling $296B)

INCREASED INVESTMENTIncreased funding to construct all authorized projects ($63B) in 10 years including increased funding to 2045 to rehabilitate existing locks and perform routine maintenance (totaling $359B)

Gradually decreasing funding through 2045 for operation and maintenance leading to decreased reliability No construction of authorized projects (totaling $153B)

Sales

GDP

Employment 395000

Total Cumulative Economic Impact to 2045

$185 B

$354 B

uarr $72 B

uarr 39

uarr $142 B

uarr 40

darr 72000

darr 18

darr $70 B

darr 38

darr $133 B

darr 384

uarr 77000

uarr 20

Increase Over Status Quo

uarr $63 Billion

Decrease From Status Quo

darr $143 Billion

Inland Waterway Investment Grows American Economy

FARM PRODUCT VOLUME

Total Cumulative Market Value Impact to 2045

The inland navigable waterways are essential to moving farm products to grain export elevators along the Gulf

US corn and soybean farmers are the most efficient in the world Our countryrsquos waterways and multimodal transportation network provides a competitive edge in global markets

Status Quo 1608

Total Cumulative Volume Impact to 2045 (Million Tons)

Increased 2167

Reduced 864darr 744darr 46

MARKET VALUE

IncreasedInvestment+$39 Billion

Reduced Investment-$58 Billion

Range of$97 Billion

5

uarr 559uarr 35

More Investment = More Farm Exports Less Investment = Less Farm Exports

SOYBEAN COST TO SHANGHAI CHINA

REDUCEDINVESTMENT

2045

INCREASED INVESTMENT

2045

DAVENPORT IA2018

NORTH MATO GROSSO BRAZIL

2018

Units are in $MT

Infrastructure Investment is critical for competitiveness of the US farmer Infrastructureinvestment leads to higher transportation capacity higher transportation capacity leadsto lower freight rates lower freight rates lead to higher farmer returns Withoutinfrastructure investment both the US farmer and the American economy lose to globalcompetitors

Curr

ent C

ost

Inve

stm

ent E

ffect

s

$31355$29343

$1210

$7937

$2428

$4752

$3000

$39745$40280

$31355 $31355

$1210 $1210

$2010

$3352

$3450

$4752$38025

$40669

darr$418

darr17

darr4

uarr$924

uarr38

uarr2

darr$1302

darr27

$31355

$1210

$2660

$4752

$39977 uarr05

uarr$232

uarr9

STATUS QUO2045

6

Increased Investment Enhances Competitiveness by

Reducing Shipping Costs

bull Higher and consistent inland waterway investment is needed to ensure the long-term prosperity of US agriculture

bull The Navigation amp Ecosystem Sustainability Program (NESP) is essential for the competitiveness of the heartland corridor ndash its Pre-construction Engineering amp Design (PED) funding is necessary before construction can begin Pending PED funding for NESP is time-sensitive

China investment in Brazil hit seven-year high in 2017

httpswwwreuterscomarticleus-brazil-china-investmentchina-investment-in-brazil-hit-seven-

year-high-in-2017-idUSKBN1F7387

Brazil wants China to invest in its infrastructure

httpsfinanceyahoocomnewsbrazil-wants-china-invest-infrastructure-194842132html

China to invest $50bn in Brazil infrastructure

httpswwwbbccomnewsbusiness-32747454

RECENT NEWS HEADLINES

7

SOYBEAN TRANSPORTATION COSTS TO CHINA US vs BRAZIL

40

60

80

100

120

140

160

180

200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$M

etric

Ton

Davenport North Mato Grosso

AMERICAN INFRASTRUCTURE IMPERATIVE

Will the US Retain itsCompetitive Advantage

STATUS QUO INVESTMENT

REDUCED INVESTMENT

Sales

GDP

Employment

Sales

GDP

Employment

Total Cumulative Economic Impact to 2045

Total Cumulative Economic Impact to 2045

472000

$258 B

$496 B

323000

$115 B

$220 B

Current funding trends continue to 2045 for new construction major rehabilitation and performing routine maintenance (totaling $296B)

INCREASED INVESTMENTIncreased funding to construct all authorized projects ($63B) in 10 years including increased funding to 2045 to rehabilitate existing locks and perform routine maintenance (totaling $359B)

Gradually decreasing funding through 2045 for operation and maintenance leading to decreased reliability No construction of authorized projects (totaling $153B)

Sales

GDP

Employment 395000

Total Cumulative Economic Impact to 2045

$185 B

$354 B

uarr $72 B

uarr 39

uarr $142 B

uarr 40

darr 72000

darr 18

darr $70 B

darr 38

darr $133 B

darr 384

uarr 77000

uarr 20

Increase Over Status Quo

uarr $63 Billion

Decrease From Status Quo

darr $143 Billion

Inland Waterway Investment Grows American Economy

FARM PRODUCT VOLUME

Total Cumulative Market Value Impact to 2045

The inland navigable waterways are essential to moving farm products to grain export elevators along the Gulf

US corn and soybean farmers are the most efficient in the world Our countryrsquos waterways and multimodal transportation network provides a competitive edge in global markets

Status Quo 1608

Total Cumulative Volume Impact to 2045 (Million Tons)

Increased 2167

Reduced 864darr 744darr 46

MARKET VALUE

IncreasedInvestment+$39 Billion

Reduced Investment-$58 Billion

Range of$97 Billion

5

uarr 559uarr 35

More Investment = More Farm Exports Less Investment = Less Farm Exports

SOYBEAN COST TO SHANGHAI CHINA

REDUCEDINVESTMENT

2045

INCREASED INVESTMENT

2045

DAVENPORT IA2018

NORTH MATO GROSSO BRAZIL

2018

Units are in $MT

Infrastructure Investment is critical for competitiveness of the US farmer Infrastructureinvestment leads to higher transportation capacity higher transportation capacity leadsto lower freight rates lower freight rates lead to higher farmer returns Withoutinfrastructure investment both the US farmer and the American economy lose to globalcompetitors

Curr

ent C

ost

Inve

stm

ent E

ffect

s

$31355$29343

$1210

$7937

$2428

$4752

$3000

$39745$40280

$31355 $31355

$1210 $1210

$2010

$3352

$3450

$4752$38025

$40669

darr$418

darr17

darr4

uarr$924

uarr38

uarr2

darr$1302

darr27

$31355

$1210

$2660

$4752

$39977 uarr05

uarr$232

uarr9

STATUS QUO2045

6

Increased Investment Enhances Competitiveness by

Reducing Shipping Costs

bull Higher and consistent inland waterway investment is needed to ensure the long-term prosperity of US agriculture

bull The Navigation amp Ecosystem Sustainability Program (NESP) is essential for the competitiveness of the heartland corridor ndash its Pre-construction Engineering amp Design (PED) funding is necessary before construction can begin Pending PED funding for NESP is time-sensitive

China investment in Brazil hit seven-year high in 2017

httpswwwreuterscomarticleus-brazil-china-investmentchina-investment-in-brazil-hit-seven-

year-high-in-2017-idUSKBN1F7387

Brazil wants China to invest in its infrastructure

httpsfinanceyahoocomnewsbrazil-wants-china-invest-infrastructure-194842132html

China to invest $50bn in Brazil infrastructure

httpswwwbbccomnewsbusiness-32747454

RECENT NEWS HEADLINES

7

SOYBEAN TRANSPORTATION COSTS TO CHINA US vs BRAZIL

40

60

80

100

120

140

160

180

200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$M

etric

Ton

Davenport North Mato Grosso

AMERICAN INFRASTRUCTURE IMPERATIVE

Will the US Retain itsCompetitive Advantage

FARM PRODUCT VOLUME

Total Cumulative Market Value Impact to 2045

The inland navigable waterways are essential to moving farm products to grain export elevators along the Gulf

US corn and soybean farmers are the most efficient in the world Our countryrsquos waterways and multimodal transportation network provides a competitive edge in global markets

Status Quo 1608

Total Cumulative Volume Impact to 2045 (Million Tons)

Increased 2167

Reduced 864darr 744darr 46

MARKET VALUE

IncreasedInvestment+$39 Billion

Reduced Investment-$58 Billion

Range of$97 Billion

5

uarr 559uarr 35

More Investment = More Farm Exports Less Investment = Less Farm Exports

SOYBEAN COST TO SHANGHAI CHINA

REDUCEDINVESTMENT

2045

INCREASED INVESTMENT

2045

DAVENPORT IA2018

NORTH MATO GROSSO BRAZIL

2018

Units are in $MT

Infrastructure Investment is critical for competitiveness of the US farmer Infrastructureinvestment leads to higher transportation capacity higher transportation capacity leadsto lower freight rates lower freight rates lead to higher farmer returns Withoutinfrastructure investment both the US farmer and the American economy lose to globalcompetitors

Curr

ent C

ost

Inve

stm

ent E

ffect

s

$31355$29343

$1210

$7937

$2428

$4752

$3000

$39745$40280

$31355 $31355

$1210 $1210

$2010

$3352

$3450

$4752$38025

$40669

darr$418

darr17

darr4

uarr$924

uarr38

uarr2

darr$1302

darr27

$31355

$1210

$2660

$4752

$39977 uarr05

uarr$232

uarr9

STATUS QUO2045

6

Increased Investment Enhances Competitiveness by

Reducing Shipping Costs

bull Higher and consistent inland waterway investment is needed to ensure the long-term prosperity of US agriculture

bull The Navigation amp Ecosystem Sustainability Program (NESP) is essential for the competitiveness of the heartland corridor ndash its Pre-construction Engineering amp Design (PED) funding is necessary before construction can begin Pending PED funding for NESP is time-sensitive

China investment in Brazil hit seven-year high in 2017

httpswwwreuterscomarticleus-brazil-china-investmentchina-investment-in-brazil-hit-seven-

year-high-in-2017-idUSKBN1F7387

Brazil wants China to invest in its infrastructure

httpsfinanceyahoocomnewsbrazil-wants-china-invest-infrastructure-194842132html

China to invest $50bn in Brazil infrastructure

httpswwwbbccomnewsbusiness-32747454

RECENT NEWS HEADLINES

7

SOYBEAN TRANSPORTATION COSTS TO CHINA US vs BRAZIL

40

60

80

100

120

140

160

180

200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$M

etric

Ton

Davenport North Mato Grosso

AMERICAN INFRASTRUCTURE IMPERATIVE

Will the US Retain itsCompetitive Advantage

SOYBEAN COST TO SHANGHAI CHINA

REDUCEDINVESTMENT

2045

INCREASED INVESTMENT

2045

DAVENPORT IA2018

NORTH MATO GROSSO BRAZIL

2018

Units are in $MT

Infrastructure Investment is critical for competitiveness of the US farmer Infrastructureinvestment leads to higher transportation capacity higher transportation capacity leadsto lower freight rates lower freight rates lead to higher farmer returns Withoutinfrastructure investment both the US farmer and the American economy lose to globalcompetitors

Curr

ent C

ost

Inve

stm

ent E

ffect

s

$31355$29343

$1210

$7937

$2428

$4752

$3000

$39745$40280

$31355 $31355

$1210 $1210

$2010

$3352

$3450

$4752$38025

$40669

darr$418

darr17

darr4

uarr$924

uarr38

uarr2

darr$1302

darr27

$31355

$1210

$2660

$4752

$39977 uarr05

uarr$232

uarr9

STATUS QUO2045

6

Increased Investment Enhances Competitiveness by

Reducing Shipping Costs

bull Higher and consistent inland waterway investment is needed to ensure the long-term prosperity of US agriculture

bull The Navigation amp Ecosystem Sustainability Program (NESP) is essential for the competitiveness of the heartland corridor ndash its Pre-construction Engineering amp Design (PED) funding is necessary before construction can begin Pending PED funding for NESP is time-sensitive

China investment in Brazil hit seven-year high in 2017

httpswwwreuterscomarticleus-brazil-china-investmentchina-investment-in-brazil-hit-seven-

year-high-in-2017-idUSKBN1F7387

Brazil wants China to invest in its infrastructure

httpsfinanceyahoocomnewsbrazil-wants-china-invest-infrastructure-194842132html

China to invest $50bn in Brazil infrastructure

httpswwwbbccomnewsbusiness-32747454

RECENT NEWS HEADLINES

7

SOYBEAN TRANSPORTATION COSTS TO CHINA US vs BRAZIL

40

60

80

100

120

140

160

180

200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$M

etric

Ton

Davenport North Mato Grosso

AMERICAN INFRASTRUCTURE IMPERATIVE

Will the US Retain itsCompetitive Advantage

bull Higher and consistent inland waterway investment is needed to ensure the long-term prosperity of US agriculture

bull The Navigation amp Ecosystem Sustainability Program (NESP) is essential for the competitiveness of the heartland corridor ndash its Pre-construction Engineering amp Design (PED) funding is necessary before construction can begin Pending PED funding for NESP is time-sensitive

China investment in Brazil hit seven-year high in 2017

httpswwwreuterscomarticleus-brazil-china-investmentchina-investment-in-brazil-hit-seven-

year-high-in-2017-idUSKBN1F7387

Brazil wants China to invest in its infrastructure

httpsfinanceyahoocomnewsbrazil-wants-china-invest-infrastructure-194842132html

China to invest $50bn in Brazil infrastructure

httpswwwbbccomnewsbusiness-32747454

RECENT NEWS HEADLINES

7

SOYBEAN TRANSPORTATION COSTS TO CHINA US vs BRAZIL

40

60

80

100

120

140

160

180

200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$M

etric

Ton

Davenport North Mato Grosso

AMERICAN INFRASTRUCTURE IMPERATIVE

Will the US Retain itsCompetitive Advantage

8

Potential Investments River State River Mile

Amount ($Million)

NAVIGATION amp ECOSYSTEM SUSTAINABILITY PROGRAM (NESP) PROJECTS - AWAITING CONSTRUCTION

LaGrange Lock Illinois RiverIL 80 $3613

Peoria Lock Illinois RiverIL 158 $3625

Upper Mississippi River Lock and Dam 20 Mississippi RiverMO 343 $3263

Upper Mississippi River Lock and Dam 21 Mississippi RiverMO 325 $4542

Upper Mississippi River Lock and Dam 22 Mississippi RiverMO 301 $3766

Upper Mississippi River Lock and Dam 24 Mississippi RiverMO 273 $4383

Upper Mississippi River Lock and Dam 25 Mississippi RiverMO 241 $5485

PROJECTS AWAITING CONSTRUCTION

Brazos High Island Gulf Intracoastal WaterwayTX $176

Brazos River to Port OConnor Gulf Intracoastal WaterwayTX $222

Calcasieu Lock Gulf Intracoastal WaterwayTX 63 $169

Dashields Lock Ohio RiverPA 13 $8087

Dredging Lower-Mississippi River to 50ft Mississippi RiverLA $1591

Emsworth Lock Ohio RiverPA 6 $7444

Inner Harbor Navigation Canal Lock Mississippi RiverLA 63 $10099

Montgomery Lock Ohio RiverPA 32 $3625

MAJOR REHABILITATION PROJECTS

Brandon Road Lock Illinois RiverIL 286 $692

Dresden Island Illinois RiverIL 2715 $505

Greenup Lock Ohio RiverOH amp KY 341 $550

JT Myers Lock Ohio RiverIN amp KY 846 $452

Starved Rock Illinois RiverIL 231 $303

TJ OBrien Illinois RiverIL 327 $470

TOTAL $6306

The projects and costs listed above are based on the USACErsquos 2016 Capital Investment Strategy

Increased Investment Leads toStronger Economy for Decades

State Economic Impact of US Corn and Soybean ProductionDestined to Export in Proximity to the Navigable Waterways

on the Mississippi River System 2016 Depicted in Map9

Economic Impact of Corn and Soybean Exports by State

State Economic Impact of US Corn and Soybean Production Destined to Export in Proximity to the Navigable Waterways

on the Mississippi River System 2016 Depicted in Table 10

State Commodity Employment GDP($ Million)

Sales($ Million)

ArkansasCorn 1171 491 1548Soybean 7805 7464 14334

Total 8976 7956 15882

IllinoisCorn 8684 6225 18805Soybean 9960 10628 29467

Total 18644 16853 48272

IndianaCorn 1654 968 2916Soybean 4377 4548 10367

Total 6031 5516 13283

IowaCorn 812 685 2218Soybean 10137 14080 30382

Total 10949 14766 32600

KentuckyCorn 2599 808 2717Soybean 4604 2945 7087

Total 7203 3753 9803

Louisiana Soybean 3471 2559 5528Total 3471 2559 5528

MinnesotaCorn 1317 904 2819Soybean 5583 6679 14464

Total 6900 7583 17282

MississippiCorn 1129 477 1481Soybean 5234 4780 9463

Total 6364 5257 10944

MissouriCorn 1267 504 1713Soybean 8280 5666 15649

Total 9547 6170 17363

OhioCorn 381 165 499Soybean 4861 3272 8822

Total 5242 3436 9321

TennesseeCorn 1284 349 1025Soybean 4876 2211 5957

Total 6160 2559 6983

WisconsinCorn 72 37 110Soybean 4097 3877 8308

Total 4170 3913 8417

Waterways Benefits by State

• Importance of Inland Waterways to US Agriculture
• Americarsquos Heartland Requires a Reliable Transportation Corridor
• US Agriculturersquos Competitiveness Depends on Inland Waterways
• Inland Waterway Investment Grows American Economy
• More Investment = More Farm Exports Less Investment = Less Farm Exports
• Increased Investment Enhances Competitiveness by Reducing Shipping Costs
• Will the US Retain itsCompetitive Advantage
• Increased Investment Leads toStronger Economy for Decades
• Economic Impact of Corn and Soybean Exports by State
• Waterways Benefits by State

State Economic Impact of US Corn and Soybean ProductionDestined to Export in Proximity to the Navigable Waterways

on the Mississippi River System 2016 Depicted in Map9

Economic Impact of Corn and Soybean Exports by State

State Economic Impact of US Corn and Soybean Production Destined to Export in Proximity to the Navigable Waterways

on the Mississippi River System 2016 Depicted in Table 10

State Commodity Employment GDP($ Million)

Sales($ Million)

ArkansasCorn 1171 491 1548Soybean 7805 7464 14334

Total 8976 7956 15882

IllinoisCorn 8684 6225 18805Soybean 9960 10628 29467

Total 18644 16853 48272

IndianaCorn 1654 968 2916Soybean 4377 4548 10367

Total 6031 5516 13283

IowaCorn 812 685 2218Soybean 10137 14080 30382

Total 10949 14766 32600

KentuckyCorn 2599 808 2717Soybean 4604 2945 7087

Total 7203 3753 9803

Louisiana Soybean 3471 2559 5528Total 3471 2559 5528

MinnesotaCorn 1317 904 2819Soybean 5583 6679 14464

Total 6900 7583 17282

MississippiCorn 1129 477 1481Soybean 5234 4780 9463

Total 6364 5257 10944

MissouriCorn 1267 504 1713Soybean 8280 5666 15649

Total 9547 6170 17363

OhioCorn 381 165 499Soybean 4861 3272 8822

Total 5242 3436 9321

TennesseeCorn 1284 349 1025Soybean 4876 2211 5957

Total 6160 2559 6983

WisconsinCorn 72 37 110Soybean 4097 3877 8308

Total 4170 3913 8417

Waterways Benefits by State

• Importance of Inland Waterways to US Agriculture
• Americarsquos Heartland Requires a Reliable Transportation Corridor
• US Agriculturersquos Competitiveness Depends on Inland Waterways
• Inland Waterway Investment Grows American Economy
• More Investment = More Farm Exports Less Investment = Less Farm Exports
• Increased Investment Enhances Competitiveness by Reducing Shipping Costs
• Will the US Retain itsCompetitive Advantage
• Increased Investment Leads toStronger Economy for Decades
• Economic Impact of Corn and Soybean Exports by State
• Waterways Benefits by State

State Economic Impact of US Corn and Soybean Production Destined to Export in Proximity to the Navigable Waterways

on the Mississippi River System 2016 Depicted in Table 10

State Commodity Employment GDP($ Million)

Sales($ Million)

ArkansasCorn 1171 491 1548Soybean 7805 7464 14334

Total 8976 7956 15882

IllinoisCorn 8684 6225 18805Soybean 9960 10628 29467

Total 18644 16853 48272

IndianaCorn 1654 968 2916Soybean 4377 4548 10367

Total 6031 5516 13283

IowaCorn 812 685 2218Soybean 10137 14080 30382

Total 10949 14766 32600

KentuckyCorn 2599 808 2717Soybean 4604 2945 7087

Total 7203 3753 9803

Louisiana Soybean 3471 2559 5528Total 3471 2559 5528

MinnesotaCorn 1317 904 2819Soybean 5583 6679 14464

Total 6900 7583 17282

MississippiCorn 1129 477 1481Soybean 5234 4780 9463

Total 6364 5257 10944

MissouriCorn 1267 504 1713Soybean 8280 5666 15649

Total 9547 6170 17363

OhioCorn 381 165 499Soybean 4861 3272 8822

Total 5242 3436 9321

TennesseeCorn 1284 349 1025Soybean 4876 2211 5957

Total 6160 2559 6983

WisconsinCorn 72 37 110Soybean 4097 3877 8308

Total 4170 3913 8417

Waterways Benefits by State

• Importance of Inland Waterways to US Agriculture
• Americarsquos Heartland Requires a Reliable Transportation Corridor
• US Agriculturersquos Competitiveness Depends on Inland Waterways
• Inland Waterway Investment Grows American Economy
• More Investment = More Farm Exports Less Investment = Less Farm Exports
• Increased Investment Enhances Competitiveness by Reducing Shipping Costs
• Will the US Retain itsCompetitive Advantage
• Increased Investment Leads toStronger Economy for Decades
• Economic Impact of Corn and Soybean Exports by State
• Waterways Benefits by State