soy transportation coalition national waterways conference march 28, 2012
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Soy Transportation Coalition National Waterways Conference March 28, 2012. Why Should Farmers Care About Transportation? … Because our international competitiveness depends on it. Costs of transporting soybeans: U.S. vs. Brazil (per metric ton; 4 th quarter, 2011) - PowerPoint PPT PresentationTRANSCRIPT
Soy Transportation CoalitionNational Waterways Conference
March 28, 2012
Why Should Farmers Care About Transportation? …Because our international competitiveness depends on it.
Costs of transporting soybeans: U.S. vs. Brazil (per metric ton; 4th quarter, 2011)
Davenport, Iowa to Shanghai North Mato Grosso to ShanghaiTruck - $10.22 Truck - $115.05Barge - $28.91 ---------Ocean - $55.33 Ocean – $49.65Total Trans - $94.46 Total Trans - $164.70Farm Value - $425.00 Farm Value - $358.24Landed Cost - $519.46 Landed Cost - $522.94Trans. as % of Land. Cost – 18.18% Trans. as % of Land. Cost –
31.50%
Source: USDA
Why Should Farmers Care About Waterways? …Because farmer profitability is impacted by it.
The Soy Transportation Coalition – Farmer funded & farmer led Established in 2007. Comprised of 11 state soybean councils, the
United Soybean Board, American Soybean Association. National Grain & Feed Association & National Oilseed Processors: ex-officio members.
Panama Canal Expansion – Opportunity for increased efficiency, or are we shifting the bottleneck?
Pre Panama Canal Expansion (70 miles)
Post Panama Canal Expansion (111 miles)
Post Panama Canal Expansion (161 miles)
America’s Locks & Dams: A Ticking Time Bomb for Agriculture?Volume of Commodity Flows (2010) Illinois River
Grain: 24 million tons (20%) Coal: 13 million tons (11%) Petroleum: 19 million tons (16%)
Mississippi River Grain: 236 million tons (48%) Coal: 51 million tons (10%) Petroleum: 19 million tons (4%)
Ohio River Grain: 49 million tons (5%) Coal: 614 million tons (59%) Petroleum: 58 million tons (6%)
America’s Locks & Dams: A Ticking Time Bomb for Agriculture?Cost to Agricultural Producers of Lock Closures($ millions):Lock 2 Weeks 1 Month 3 Months 1
YearLaGrange $2.7 $4.8 $21.2
$30.4Lock 20 $2.8 $4.9 $15.4 $44Lock 25 $2.8 $4.9 $15.4 $44.1Markland $0.89 $1.02 $3.8 $4.9Lock 52 $2.9 $3.1 $11.9 $13.9
America’s Locks & Dams: A Ticking Time Bomb for Agriculture?Most affected districts by lock failure (both
production & consumption) LaGrange
Illinois District #20 Reduction in corn prices: 7 cents per ton Reduction in soybean prices: $2.45 per ton Total cost to agriculture: $4.3 million
America’s Locks & Dams: A Ticking Time Bomb for Agriculture?Lost Revenue to Barge Companies from Lock
Closures ($ millions):Lock 2 Weeks 1 Month 3 Months 1
YearLaGrange $3.6 $5.6 $4.3
$104Lock 20 $5.1 $15 $33.3 $150Lock 25 $5.1 $14.2 $32.4 $162Markland $2.2 $4.7 $7.3 $11Lock 52 $17.2 $26.1 $68 $71.5
Is it time to ask some tough questions?
Argument #1: How we allocate money is just as important as how much money we allocate. Comparison: U.S. lock & dam projects vs. foreign
examples Describe alternative funding mechanisms that
provide: 1.) Money up front & 2.) Greater certainty Explore potential for foreign investment
Is it time to ask some tough questions?
Argument #2: A predictably good inland waterway system is better than a hypothetically great one. Should we transition from a “build & expand”
approach to a “preserve & maintain” approach? Viability? What would that look like? Cost savings?
Thank YouSoy Transportation Coalition
1255 SW Prairie Trail ParkwayAnkeny, Iowa 50023
515-727-0665515-251-8657 (fax)
www.soytransportation.org
Mike Steenhoek, Executive [email protected]