The port of South Louisiana is the No. 1 export port for grain by volume in the U.S., so it’s important for U.S. farmers getting their product to export markets.
This vital area is a key link for moving grain down the Mississippi River from the main production areas of the U.S., and the port of South Louisiana handles product from 31 states.
Micah Cormier, with the Port of South Louisiana, says, “Of our 100 million tons of grain every year, 60% of the nation’s grain comes and is exported right here at the port of South Louisiana to over 90 countries throughout the world.”
Garrett Marsh, United Soybean Board director and a Louisiana farmer, says the port is critical for U.S. soybean farmers.
“55% of our nation’s soybean crop comes out of this Mississippi gulf region, and I think 89% of that comes out of this river,” he says.
The efficiency of this key grain infrastructure outlet helps to keep barge freight rates lower according to Mike Steenhoek, executive director for the Soy Transportation Coalition. “And that journey, because it’s by barge is very economical. It’s very reliable. And so, it’s really one of those secrets to our success.”
The end result is stronger grain prices for farmers Steenhoek says.
“When your supply chain becomes better or worse, those benefits or those costs get passed on to the farmer in the form of basis,” he adds.
The efficiency of the port of South Louisiana is also a key to keeping U.S. farmers competitive globally.
“There are other countries that that can produce the bushels, but they can’t get it to market as efficiently as we can,” Marsh says.
That competitive edge has been threatened the past two years with historically low water levels on the inland waterway system tied to the drought.
“Barge companies are having to resort to light loading their barges or reducing the number of barges that they attach to form one single unit,” Steenhoek explains. “On an individual barge [it could be] 20%, 25% even 30% reduction in the actual capacity that you’re transporting down the river.”
That has lowered overall export volumes for soybeans at the New Orleans port during their peak export season this fall.
“The last I saw was somewhere around 18% from the last quarter of soybeans down,” Cormier says, “and much of that has to do with the drought.”
Yet, despite this historical hiccup, Steenhoek says this export area barely missed a beat getting grain out and inputs back up the river.
“Even in the midst of low water conditions, very unfavorable conditions for transporting by barge, you still saw last year 55% of soybean exports leave from this area of the country, which is really a testimony to how profound this area is for us,” he says.
As a result, farmers are making major investments to keep this infrastructure efficient and effective for the future.
