Flooding Creates Infrastructure and Transportation Headaches for Agriculture

Soybean processors, for one, are struggling in parts of the Upper Midwest where floodwaters have impacted railways and other transportation systems.

Iowa_Flooding
Iowa_Flooding

The inundation of flood waters flowing through parts of Iowa, Minnesota and South Dakota are regional in nature but they are impacting the agricultural community beyond those three states, AgriTalk Host Chip Flory observed on Thursday

“Whenever we get into these events, we always think what this might be doing to our ability to move products and grains around the Midwest,” he said.

The 15 or so inches of rain that fell last weekend in northwest Iowa had an immediate impact on local infrastructures, causing rivers and even small streams to surge beyond their banks and cover roads, fields and even homesteads.

Then, there are scenarios that cause ripple effects that extend beyond a local geography. One of those, captured on video, was when the BNSF railroad bridge collapsed over the Big Sioux River on the South Dakota-Iowa state line.

A Burlington Northern Sante Fe spokesperson said in a prepared statement that trains that would use the bridge under normal conditions were being rerouted at Creston, Iowa.

“That’s in the south-central part of Iowa, three-thirds of the way down south in the state,” Mike Steenhoek, executive director of the Soy Transportation Coalition, told Flory. “All of a sudden, you’ve got additional freight and additional demand for the infrastructure in a different area, so you can see how a problem can extend from one area and then throughout an entire network,” he added.

Infrastructures Are Strained

Steenhoek told Flory that northwest Iowa, Minnesota, South Dakota and parts of Nebraska are responsible for a sizable portion of the country’s soybean processing capacity, which also increases the strain on rail systems.

“There are facilities there that are 365 days inbound and 365 days outbound, because they are processing soybeans,” he said.

“A lot of that freight ends up going over the very infrastructure – which has now been compromised – to the livestock industry or to the Pacific Northwest for export. This is going to have an impact on those products, which obviously is a concern for us,” Steenhoek added.

A Mix Of Conditions

As Steenhoek evaluated the condition of some of the major river systems on Thursday, he told Flory that the Missouri River is starting to recede. He expects that will continue – as long as little to no additional rainfall occurs in the near term.

On parts of the Mississippi River, water levels are high and flooding is underway in some areas as floodwaters move from northern areas and flow south.

The Scott County Emergency Management Agency, based in Davenport, Iowa, posted a notice online on Tuesday that residents need to prepare for potential flooding.

“Timing, river levels, and the possible impacts on Scott County still are not clear at this time,” the notice said. “Based on current information, river crest levels could be reached around July 4, 2024. Timing is contingent upon upcoming weather and rain.”

One silver lining, Steenhoek mentioned to Flory, is that as water flows away from the regions most affected by rainfall and flooding, there is usually more area within a river system to absorb surges of water.

For more insights on how flooding is impacting agriculture, listen to the complete discussion between Steenhoek and Flory on AgriTalk.

AgWeb-Logo crop
Related Stories
Darin Newsom, senior market analyst with Barchart, says it is not unexpected to see a little profit taking moving into the end of the month. However, he thinks any breaks will be bought by the trend following funds.
Jim McCormick with AgMarket.Net says the market saw massive fund buying and short covering adding war or geopolitical premium.
Scott Varilek with Kooima Kooima Varilek says the Truth Social post from President Trump that 300,000 MT of beef imports will enter the U.S. duty free over the next 90 days to lower beef prices tanked the cattle market early Friday.
Get News Daily
Get Market Alerts
Get News & Markets App