PEORIA, Ill. – U.S. farmers concerned about the potential for a U.S. port strike on the East and Gulf Coasts got some relief Oct. 3 when the union agreed to extend the contract it had with the United States Maritime Alliance. That deal will be now extended until Jan. 15 and have the union members back on the job while the final details are worked out.

For Midwest farmers currently harvesting bumper crops like Ross Pauli, of Peoria, the port strike, which began Oct. 1, couldn’t have come at a worse time. Pauli told local news media that combined with low water levels on the Mississippi, the port strike will make it much harder for farmers like him to get their crops to market.

“What the (barges) do is raise their rate, and what that does is lower the price farmers (receive) even more. So, there’s a lot of pieces to this puzzle, and it’s becoming the perfect bad storm right now,” said Pauli, adding that Midwest farmers would not be the only ones adversely affected by the strike, which affects 36 U.S. ports.

National Grain and Feed Association (NGFA) president and CEO Mike Seyfert took Pauli’s observation one step further, referring to a “trifecta of transportation trouble” affecting agriculture in a letter sent to President Joe Biden just days before the port strike became official. According to Seyfert and the NGFA, the strike, if it had continued, would grind to a halt the movement of approximately 40 percent of U.S. containerized agricultural exports.

“Farmers across the country are harvesting their crops, and the last thing NFGA members or the agricultural community can afford right now is a breakdown in any part of our nation’s shipping network,” Seyfert said in the letter. “Unfortunately, there is a trifecta of trade trouble on the horizon, which left unaddressed, could create bottlenecks in the supply chain and potentially lower farmgate prices.”

In addition to expressing concern about the port strike and barge navigation issues on the Mississippi River, the signers warned the administration of Mexican-imposed embargoes on U.S. agricultural rail shipments to Mexico, the largest market for many U.S. agricultural products. In the letter, which was co-signed by nearly 200 other organizations and companies, Biden administration officials were asked to intervene to keep Mexican borders open and rail cars moving between the countries.

The group also called on the U.S. Army Corps of Engineers to ensure deeper navigation channels in the lower Mississippi River to address historically low water levels.

“A substantial portion of U.S. agriculture is experiencing lower commodities prices and financial strain,” the letter read, in part, “and these transportation issues are exacerbating the situation. We ask your administration to urgently pursue all avenues to mitigate the supply chain challenges facing U.S. agriculture.”

While striking workers went back to work on Friday, Oct. 4, members still have to vote on the deal. If members vote against the deal, the strike might start once again, according to an article in CNN. 

Around 5 or 6 percent of total U.S. soybean exports would be affected by the strike, according to Mike Steenhoek, executive director of the Soy Transportation Coalition. “Last year, 54 million metric tons of U.S. soybeans were exported by bulk. 5.8 million metric tons were exported via containers. Of that 5.8 million, approximately half of that was exported via the East and Gulf coasts. The other half was primarily exported via Los Angeles-Long Beach and other West Coast ports. Therefore, we’re looking at approximately 5-6 percent of total soybean exports that will be impacted by a strike on the East and Gulf coasts,” said Steenhoek in an email, while crediting the USDA for the statistical data.

“In addition to soybean exports, we are clearly concerned with the detrimental impact on meat exports. So many of the soybeans grown in the U.S. are ultimately fed to livestock for both the domestic and export markets. You cannot harm meat and poultry exports without harming soybean farmers,” Steenhoek added.

Jim Weismeyer, an analyst with AgWeb, said the strike would not greatly affect bulk shipments of harvested crops. “The strike would have limited impact on bulk grain exports, including corn and soybeans. Bulk grain export facilities would not be affected by the strike as these facilities typically operate with different labor arrangements, such as their own employees or different labor unions,” Wiesemeyer reported.

“While bulk grain exports would be largely unaffected, the strike would impact containerized agricultural exports: Soybeans, soybean meal, and other agricultural products exported via containers would be affected,” he added.