AASHTO Journal, 24 August 2012
The lack of investment in the nation’s deteriorating transportation system could cost U.S. farmers the competitive advantage they have typically enjoyed, says a report released last month by the United Soybean Board.
The study, “Farm to Market — A Soybean’s Journey from Field to Consumer,” highlights the importance of a strong and updated national transportation system and identifies problems it currently faces. Soybean farmers regularly encounter major transportation issues including:
- Issues with locks and dams on the inland navigation system, as they have exceeded their design lives and aren’t adequately accommodating modern tow configurations
- Load limitations due to problems with certain waterways at key ports
- Constant bottlenecks
The report estimates that approximately $145.9 million per year could be saved in the soybean and grain industries with investments in transportation infrastructure. For industries that account for about 1.5 million jobs per year, and nearly $352 billion in U.S. output and $41 billion in labor earnings, and add more than $74 billion in value to the U.S. economy, that savings would not only benefit farmers but the nation as a whole. This savings would likely come from:
- Improved reliability in the delivery time of soybeans and grains;
- Reduced travel time and transit costs;
- Improved efficiency at ports for using larger, more efficient ocean going vessels; and
- Potential re-assignment of rail traffic to barge traffic for freight currently utilizing rail to avoid deficiencies at key lock and dam facilities.
“The entire transportation network has been vital to the U.S. soy industry, not only in moving our product to domestic processors but also in delivering U.S. soy to our international customers as well,” said USB Director and soybean farmer Dale Profit. “We need to protect this advantage if the United States is going to remain the preferred source of soy throughout the world.”
The 364-page report, prepared by Informa Economics, Inc. and the Economic Development Research Group, is available online at bit.ly/soybeanreport.