Shrinking Mississippi River Puts American Farm Trade at Risks

Shrinking Mississippi River Puts American Farm Trade at Risks

By Kim Chipman, Dominic Carey and Elizabeth Elkin

Source: Bloomberg

9/29/2022

Kim Chipman, Dominic Carey and Elizabeth Elkin

American farmers are facing yet another supply-chain headache just as harvest season gets into high gear: A shrinking Mississippi River.

The critical trade route for US crops and fertilizer used to grow them has had such a steep drop in water level that vessel traffic is being limited. Agriculture shipments are starting to stall and the fear is conditions could worsen, said Mike Steenhoek, executive director of the Soy Transportation Coalition.

The ebbing water flows have pushed barge prices to the highest in eight years right as the busiest season kicks off for key US crop exports. The world is in desperate need of the shipments to restock reserves diminished by Russia’s war in Ukraine. Fertilizer sent north from the US Gulf for growers to apply in preparation for next year’s crop is also under threat, raising the risk of price surges at a time of worsening food inflation.

Mississippi River

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