1 / 12

Soy Transportation Coalition National Waterways Conference March 28, 2012

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)

miette
Télécharger la présentation

Soy Transportation Coalition National Waterways Conference March 28, 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Soy Transportation CoalitionNational Waterways ConferenceMarch 28, 2012

  2. 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 ShanghaiNorth Mato Grosso to Shanghai Truck - $10.22 Truck - $115.05 Barge - $28.91 --------- Ocean - $55.33 Ocean – $49.65 Total Trans - $94.46 Total Trans - $164.70 Farm Value - $425.00 Farm Value - $358.24 Landed Cost - $519.46 Landed Cost - $522.94 Trans. as % of Land. Cost – 18.18% Trans. as % of Land. Cost – 31.50% Source: USDA

  3. Why Should Farmers Care About Waterways? …Because farmer profitability is impacted by it.

  4. 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.

  5. Panama Canal Expansion – Opportunity for increased efficiency, or are we shifting the bottleneck?

  6. 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%)

  7. America’s Locks & Dams: A Ticking Time Bomb for Agriculture? Cost to Agricultural Producers of Lock Closures ($ millions): Lock2 Weeks1 Month3 Months1 Year LaGrange $2.7 $4.8 $21.2 $30.4 Lock 20 $2.8 $4.9 $15.4 $44 Lock 25 $2.8 $4.9 $15.4 $44.1 Markland $0.89 $1.02 $3.8 $4.9 Lock 52 $2.9 $3.1 $11.9 $13.9

  8. 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

  9. America’s Locks & Dams: A Ticking Time Bomb for Agriculture? Lost Revenue to Barge Companies from Lock Closures ($ millions): Lock2 Weeks1 Month3 Months1 Year LaGrange $3.6 $5.6 $4.3 $104 Lock 20 $5.1 $15 $33.3 $150 Lock 25 $5.1 $14.2 $32.4 $162 Markland $2.2 $4.7 $7.3 $11 Lock 52 $17.2 $26.1 $68 $71.5

  10. 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

  11. 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?

  12. Thank You Soy Transportation Coalition 1255 SW Prairie Trail Parkway Ankeny, Iowa 50023 515-727-0665 515-251-8657 (fax) www.soytransportation.org Mike Steenhoek, Executive Director msteenhoek@soytransportation.org

More Related