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Soy groups: Big harvest highlights shipping woes

 

 

By TIM ALEXANDER

Illinois Correspondent

 

BLOOMINGTON, Ill. — Access to multiple modes of transportation – roads, rivers and rail – allows Illinois farmers a competitive advantage over those in many other states.

But aging infrastructure is posing a challenge to harvest transportation in a state that exports 54 percent of its soybeans, according to Paul Rasmussen, a Genoa farmer and Illinois Soybean Assoc. (ISA) District 1 director.

"In an average year, 5.7 million tons of soybeans are transported (statewide). In central Illinois we’re looking at one of the best crops we’ve ever had," he said, adding the ISA is serving as a voice for soybean farmers, leading infrastructure conversations at the local, state and national levels.

Rasmussen was referring to an ISA-led public-private partnership pilot program (P-5) that provides the U.S. Army Corps of Engineers with funding to improve locks and dams on the Illinois River. The ISA is also identifying rural Illinois bridges and roads in need of upgrades and working with local officials to create funding for repairs.

Under that initiative, ISA leaders coordinate with business, government and industry leaders to find transportation solutions that efficiently move soybeans from the farm gate to the customer.

"We’re trying to be a conduit," Rasmussen said. "In Peoria County, for example, working with county government, the county board and county engineer, we brought in (additional) expertise to help determine the highest-priority roads and bridges that need repair. What’s good for agriculture is important for other businesses as well."

The large 2014 harvest serves as a perfect time to call attention to a recent soybean checkoff-funded study which found that for every dollar spent on transportation infrastructure repairs, an average of $10.24 is returned on the investment, Rasmussen noted.

Farming in DeKalb County, he and other farmers use multiple modes of transportation to move their grain to upstate, regional and export markets, making future investments in infrastructure critical to their livelihoods.

"Roads and bridges are a big concern for us, as well as our locks and dams," he said. "These are basically the same concerns we’ve had in the past."

But critical rural infrastructure issues may be more in the spotlight this year, with record harvests of corn and soybeans expected. That’s why the ISA is working with counties and townships to improve rural bridges and roads to accommodate fully-loaded grain trucks that can weigh as much as 80,000 pounds, while also taking a lead role in coordinating pilot projects for lock and dam upgrades on the Illinois and upper Mississippi rivers with the Corps of Engineers.

"Most of our dams were built in the 1930s with a 50-year lifespan. Obviously, we’re far beyond that date," said Rasmussen. "We’re trying to make sure that moving forward, there are funds available for scheduled repairs and funds available for (emergency repairs). This has been a battle that agriculture and others have been involved in for a very long time."

Elevators and grain merchandisers are coordinating efforts to prepare for the deluge of grain at harvest, said Kelly Buchanan, marketing and communications manager at CGB Enterprises, Inc. "All areas of the transportation systems – rail, truck and barge – are going to be stretched tight during harvest. Demand is large, but supply should definitely be available to service export customers," he predicted.

Rail transportation issues could offer the first infrastructure deficiency to be thrust into the public spotlight this harvest season, according to the Soy Transportation Coalition (STC), on which Rasmussen is a board representative from the ISA.

Rail service challenges left a bitter taste in many shippers’ mouths last harvest, and rail shipments of agricultural products have persisted into the fall of 2014, the STC noted in a recent study.

Considering all modes of agricultural transportation, the STC study found the U.S. soybean industry is consistently the most economical and reliable supplier to international customers, compared with South American transportation systems, because of the United States’ extensive and better-maintained transportation system.

But there is growing concern that the nation’s freight rail industry is becoming increasingly incapable of accommodating the volume of soybeans and grain produced, explained Mike Steenhoek.

"The thing about good reputations is that they take years to amass and moments to evaporate," said Steenhoek, who serves as executive director for the Ankeny, Iowa-based STC.

"The U.S. soybean industry has developed this unique reputation as the preeminent supplier of soybeans and soy products on the international marketplace. It is one of the key reasons farmers have enjoyed profitability.

"When we start to observe evidence of more costly, less reliable, service, we understandably become concerned. This has the potential of severely impacting the profitability of individual farmers. Transportation is clearly not a theoretical issue for farmers, it is very tangible. We therefore need to remain engaged to assure our nation improves its transportation system for our agricultural sector."

10/15/2014