In The News

Dec 1, 2023

Key Issues: TradeTransportation and Infrastructure

Author: Krista Swanson

For the second year in a row, drought conditions are impacting transportation on the Mississippi River at the peak shipment point of the year. Shallower river levels mean barge weight restrictions, slower barge traffic, and higher costs to ship commodities on the river. Ultimately, this translates to a relatively lower price at the farmgate and higher cost for the world buyer.   Drought Slows Grain Barge Traffic in 2022 and 2023 The Mississippi River is an important channel for commodity transportation. The USDA reports the final mode of transport was barge for 13% of U.S. grains in 2020, and 46% of exported U.S. grains[i]. There are normally two peaks in grain barge movements, one in late summer leading up to the end of the marketing year for corn and soybeans, and the other emerging in the fall harvest season and into the post-harvest months.   The impact of low water levels on grain barge movements was notable in 2023, marking the second consecutive year of drought...

Dec 23, 2022

Key Issues: Transportation and Infrastructure

Author: Bryan Goodman

Today President Biden signed the Water Resources Development Act of 2022 into law. WRDA 2022, which remains on a biennial schedule in Congress, includes a policy provision that makes permanent the 65% general revenues/35% Inland Waterways Trust Fund cost-share for lock and dam construction and major rehabilitation projects. Congress established a 65%/35% cost-sharing formula in WRDA 2020 that was set to expire in 2031, at which time the cost-share would return to the former formula of a 50%/50% split between the general fund and IWTF. The 65%/35% ratio would allow IWTF dollars to help finance more projects than under the 50%/50% cost-share.   NCGA will push to pass a 75%/25% cost-share and WRDA 2024 in the 118th Congress.

Dec 1, 2022

Key Issues: Transportation and Infrastructure

Author: Bryan Goodman

The Senate voted 80-15 today to pass a bill that would head off a potential rail strike that could have disrupted the movement of grain and input shipments. The vote comes a day after the House approved similar legislation.   The National Corn Growers Association applauded the development.   “We are extremely relieved that Congress took action to head off a strike that would have had serious consequences for America’s farmers, who are grappling with an increase in input costs and barge rates due to severe drought conditions on the Mississippi River,” said NCGA President Tom Haag. “Today’s actions are an excellent example of Congress working together to get things done on behalf of the American people.”   A deal to avert a strike appeared imminent in recent months, but a disagreement over paid sick days put the country back on the pathway to a strike, which could have begun as early as Dec. 9. Left with no other options, Pres. Biden urged Congress to act.   The bill will now...

Nov 30, 2022

Key Issues: Transportation and Infrastructure

Author: Bryan Goodman

The U.S. House of Representatives voted today to block a national rail strike that would have dire consequences for the nation’s economy. The vote comes as the country continues to struggle with supply-side issues and problems with key transportation hubs, including low-water levels along the Mississippi River.   The National Corn Growers Association said the vote was a welcome development.   “Rail is crucially important to America’s corn growers, who rely on it to ship grains and fertilizer,” said NCGA President Tom Haag. “We are pleased to see that Congress is taking the necessary action to ensure that rail service continues to operate.”   A deal to avert a strike appeared imminent in recent months, but a disagreement over paid sick days put the country back on the pathway to a strike, which could have begun as early as Dec. 9. Left with no other options, Pres. Biden urged Congress to act. The House passed a separate bill that would give rail workers seven sick days. Both...

Sep 15, 2022

Key Issues: Farm PolicyTransportation and Infrastructure

Author: Bryan Goodman

The National Corn Growers Association (NCGA) on Thursday said a tentative agreement between union leaders and rail workers is a positive development for farmers and the agricultural community. “We are thankful that the White House has announced a tentative agreement between rail carriers and union leaders and applaud the efforts from all parties to avoid this crisis.” said Brooke S. Appleton, vice president of public policy at the National Corn Growers Association. “It is critical to farmers, who are approaching harvest season, that rail service remain fully functional and reliable. The agreement, announced by the Biden administration on Thursday morning, appears to end a months-long stalemate between union leaders and the rail industry. The dispute prompted President Biden to establish a Presidential Emergency Board to broker agreement between the two sides. As the Friday deadline for agreement approached, preparations were being made for major disruptions to the nation’s...

Sep 13, 2022

Key Issues: Farm PolicyTransportation and Infrastructure

Author: Bryan Goodman

As the country braces for a possible large scale interruption on Friday to freight rail service over a dispute between unions and industry, the National Corn Growers Association (NCGA) is reminding leaders that the agricultural sector relies heavily on a consistent and reliable rail service and calling for Congress’s involvement. “Rail is an essential piece of the agricultural supply chain, particularly as we approach harvest season, so any disruption to rail services would have a negative and lasting impact on our growers,” said Brooke S. Appleton, the vice president of public policy at NCGA. “Given the effect this could have on farmers and the nation’s economy, we urge both sides to do whatever it takes to resolve this issue by the end of the week. If an agreement is not reached soon, Congress needs to act.” Appleton noted that NCGA has spent the summer actively encouraging industry officials and members of Congress to resolve the dispute. NCGA has also partnered with other...

Mar 29, 2022

Key Issues: Farm PolicyTransportation and Infrastructure

Author: Dusty Weis

Jon celebrates a big win in Congress with the leaders of the Illinois Corn Growers and the Waterways Council.   The Mississippi River transports 60% of American corn and soybean exports to market. The massive barges that ply America’s waterways are more cost-effective than any other form of transportation, and also play a role in getting vital inputs to growers.   And yet, much of the infrastructure that makes this possible hasn’t been updated since the 1930s… until now.   In this episode, we talk about a key win for the NCGA and other groups who have spent decades pushing Congress to act on this critical infrastructure problem.   Joining us are Jim Tarmann, the managing director with Illinois Corn Growers, and Tracy Zea, the president and CEO of the Waterways Council, which is an association dedicated to advocating for a modern national system of inland waterway infrastructure.   We discuss how we got to this point, what it means for growers in the Midwest, and what...

Mar 15, 2022

Key Issues: Transportation and Infrastructure

Author: Bryan Goodman

The National Corn Growers Association recently recognized Illinois Corn’s Managing Director Jim Tarmann for his work to secure vital funding for locks and dams along the Upper Mississippi River System.   The recognition came at the end of Commodity Classic in New Orleans.   “Jim spent years educating public policymakers about the importance of the locks and dams along the Upper Mississippi River System,” said Iowa farmer and NCGA President Chris Edgington. “Thanks to his efforts, billions of dollars are going to update this system that is so vital to farmers.”   More than 60% of the nation’s corn and soybean exports are transported on the Mississippi River. Yet, many of the locks and dams along the river system have not been updated since the 1930s, leading to breakdowns that have delayed shipments along the river. Knowing that breakdowns along the system would lead to costly delays for farmers, Tarmann began decades ago advocating for updates to the system’s locks and...

Jan 25, 2022

Key Issues: Farm PolicyTransportation and Infrastructure

Author: Bryan Goodman

As Washington prepares to debate the reauthorization of the farm bill in 2023, one group of grower leaders is well-positioned as a valuable resource for corn growers and policymakers.    The Risk Management and Transportation Action Team (RMTAT) – which oversees much of NCGA’s public-policy work on transportation, the farm safety net and federal taxes – will play an active role in preparing NCGA for the 2023 farm bill.   “NCGA will soon roll out key findings from our nationwide risk management survey of fellow corn growers,” said RMTAT Chairman Bill Leigh.” We are also spending time evaluating current farm bill commodity and crop insurance programs, continuing to support strong risk management tools, and looking for areas of improvement. And implementation of disaster assistance will once again be on the team’s agenda for the year.”   The team is building off a successful year, which saw historic federal investments in domestic infrastructure. Implementation of the bipartisan...

Jan 19, 2022

Key Issues: Transportation and Infrastructure

Author: Bryan Goodman

Appropriations from the Infrastructure Investment and Jobs Act, which passed in 2021 with bipartisan support, will soon be funding upgrades to infrastructure projects important to corn growers.   The U.S. Army Corps of Engineers announced today it would allocate $2.2 billion from the infrastructure legislation to repair and update the following locks along the Upper Mississippi River System:   Kentucky Lock along the Tennessee River, near Grand Rivers, Kentucky. Montgomery Lock on the Ohio River, 30 miles south of Pittsburgh. Lock and Dam 25 on the Upper Mississippi River, north of St. Louis. Three Rivers Lock along the Ohio River, southwest of Pittsburgh. T.J. O’Brien Lock and Dam along the Illinois River. “Corn growers depend on America’s rivers to import supplies, like fertilizers, which play an important part in planting and harvesting our crops,” said Iowa farmer and NCGA President Chris Edgington. “These rivers are also important in shipping our products to key...