NGFA highlights ‘trifecta of transportation trouble’ for US agriculture

(Posted on 01/10/24)

Potential disruptions to the nation’s shipping infrastructure could have a devastating effect on American agriculture during this year’s harvest season unless the U.S. government steps in to intervene. That is according to a letter sent to President Biden by the National Grain and Feed Association (NGFA) and nearly 200 other organisations and companies, calling for urgent action to avert a port labour strike, rail issues in Mexico, and historically low water levels on the Mississippi River.

The NGFA, established in 1896, consists of grain, feed, processing, exporting and other grain-related companies that operate facilities handling U.S. grains and oilseeds.

“Farmers across the country are harvesting their crops, and the last thing NFGA members or the agricultural community can afford right now is a breakdown in any part of our nation’s shipping network,” said NGFA President and CEO Mike Seyfert. “Unfortunately, there is a trifecta of trade trouble on the horizon, which left unaddressed, could create bottlenecks in the supply chain and potentially lower farmgate prices.”

The letter was spearheaded by NGFA and urged President Biden to intervene in the stalled labour negotiations between the International Longshoremen’s Association and the United States Maritime Alliance. The dispute could lead to a strike or lockout affecting approximately 40 percent of U.S. containerised agricultural exports.

Equally important, the signers raised concern over Mexican-imposed embargoes on U.S. agricultural rail shipments to Mexico, the largest market for many U.S. agricultural products. Administration officials were asked to intervene to keep borders open and rail cars moving between the countries.

Finally, the group called on the U.S. Army Corps of Engineers to ensure deeper navigation channels in the lower Mississippi River to address historically low water levels.

“A substantial portion of U.S. agriculture is experiencing lower commodities prices and financial strain,” the letter read, “and these transportation issues are exacerbating the situation. We ask your administration to urgently pursue all avenues to mitigate the supply chain challenges facing U.S. agriculture.”