TRANSPORTATION AND INFRASTRUCTURE

 

ASA Position

ASA strongly supports legislation to provide $1.46 billion for construction of seven new locks and other improvements on the upper Mississippi and Illinois Rivers, as provided in last year’s Water Resources Development Act (WRDA).

Background

One of the few remaining advantages U.S. soybean farmers have over our international competitors is an efficient transportation system, particularly an efficient inland waterway system. Barge transportation on these waterways is not only the most economical means of transportation, it is also the most environmentally friendly way to move U.S. soybeans to foreign and domestic markets. Over 75 percent of U.S. soybean exports move to world ports via the Upper Mississippi and Illinois River systems.

While U.S. farmers are fighting to maintain market share in a fiercely competitive global marketplace, our international competitors are investing in transportation infrastructure. Argentina has invested over $650 million in their transportation systems to make their exports more competitive. Brazil is reconstructing its water transport network to reduce the cost of shipping soybeans by at least 75%. Due in large part to these efforts, the two countries have captured 50% of the total growth in world soybean sales during the past three years.

Our lock and dam system was constructed nearly 60 years ago during the New Deal era to handle 600-foot barges. Most barge tows today are 1200 feet long, requiring the tow to be split and sent through one section at a time. These delays result in higher transportation costs, resulting in lower commodity prices and fewer international sales for U.S. farmers.

Making the necessary upgrades to improve the Mississippi and Illinois waterways would also protect jobs. Navigation on the Upper Mississippi and Illinois Rivers supports over 400,000 jobs, including 90,000 high-paying manufacturing jobs.

Last year, legislation was introduced to authorize construction of seven new 1,200-foot navigation locks, small-scale navigation improvements, and ecosystem restoration on the upper Mississippi and Illinois Rivers. The legislation would have allocated $1.46 billion in funding, half from the Inland Waterways Trust Fund, for construction of new 1,200-foot locks at Locks 20, 21, 22, 24 and 25 on the Upper Mississippi and at LaGrange and Peoria Locks on the Illinois. Similar provisions were included in the WRDA bill last year, which died when the 108th Congress adjourned. These provisions will become part of the 2005 WRDA legislation.