INDIANAPOLIS – Hoosier farmers will benefit from a pact announced in October between the Indiana State Department of Agriculture (ISDA) and Ports of Indiana, the ISDA’s director said.

The Memorandum of Understanding (MOU) will establish a framework for enhanced collaboration, with the aim of promoting increased agricultural trade and fostering economic development for Indiana, according to an ISDA release.

“The MOU will create a focus around critical needs for the agriculture and hardwood industries, including establishing container shipping facilities, expanding agricultural exports and providing reliable alternatives for shipping goods,” Don Lamb, ISDA director, told Farm World. “The recent ports strike on the East and Gulf coasts is a timely example of how important the shared transportation priorities are for our local exporters and producers.”

The Ports of Indiana operates two ports on the Ohio River – Jeffersonville and Mount Vernon – and one on Lake Michigan – Burns Harbor.

The agreement outlines ways for the organizations to partner. For example, it calls for encouraging and supporting the expansion of agricultural exports through the state’s port facilities. It also calls for investigating opportunities to develop new container shipping facilities that would serve critical needs in the agriculture and hardwood industries.

In addition, it suggests connecting key agricultural stakeholders with Indiana’s ports to explore new cargo shipping opportunities and convene critical stakeholder forums. The MOU calls for researching container export opportunities related to ISDA’s key priorities.

ISDA and Ports of Indiana have shared interests in making transportation more accessible for a variety of products, Lamb explained.

“Indiana farmers and producers ship agricultural products all over the U.S. and the world by truck, rail, barge and ship.” he said. “The conversations on the MOU started nearly a year ago as ISDA and Ports of Indiana leadership gathered to collaborate and identify ways to leverage our respective strengths while targeting opportunities to better serve Hoosiers.”

Earlier this year, ISDA and Ports of Indiana partnered with the Indiana Soybean Alliance and the Indiana Corn Marketing Council on a trade mission to Indonesia, the release said. They also hosted the first-ever Indiana Container Shipping Conference. At the conference, business, agriculture and transportation leaders discussed ways to develop new container ports, grow agriculture exports and expand global trade to support Indiana’s economic growth, the release said.

The Ports of Indiana received federal approval in July to establish the state’s first international sea cargo container terminal on Lake Michigan. The organization signed an MOU with the Port of Antwerp-Bruges (Belgium) to explore new agriculture and container shipping opportunities, the release noted.

“ISDA has helped position Indiana agriculture as a global leader in innovation and commercialization for food and fuel production, and our ports play a critical role in connecting our ag industry with world markets,” Jody Peacock, Ports of Indiana CEO, said in the release. “Our organizations and our industries are inextricably linked, and we have several shared objectives and opportunities for collaboration that can create future growth for our state and our agricultural communities.”

Lamb said it’s possible ISDA could reach MOU’s with other entities down the road.

“Our commitment to helping farmers and producers is a partner-driven approach to address specific needs and opportunities,” he said. “In some cases, an MOU helps us to clarify our roles and responsibilities with partners. Ultimately, we are willing to come alongside other state agencies, commodity groups, industry partners and private businesses if it means we can provide value to Hoosiers on the farm and in related sectors.”

Indiana is the nation’s ninth largest agriculture state, as the industry contributes more than $35 billion yearly to the state’s economy, ISDA said. Indiana ranks 13th for waterborne shipping. Ports of Indiana handles more than 4 million tons of agriculture products at its locations.