Mississippi River nears a historic low, leading to grounded barges, high shipping rates and less profit for farmers

Crews move pipes across Wolf River Harbor in 
Memphis. (Photo by Patrick Lantrip, Daily Memphian)

Dropping water levels in the Mississippi River have caused shipping costs to rise just as harvest season approaches for many Midwestern soybean and corn farmers, reports Keely Brewer in a story for the Daily Memphian that was republished by Investigate Midwest via the Mississippi River Basin Ag & Water Desk. Near Memphis, the river was just a few feet higher than an all-time low set in 1988 and the National Weather Service projected that the water level could get close to the record by the end of the month.

Eight barges ran aground in the low water last week and the dropping water level means fewer will be able to transport their loads to New Orleans, where they can be shipped globally. "A low river’s impact on barge traffic is twofold," Keely writes. "The lower the water, the narrower the river, and the fewer barges can fit in the channels. And the lower the water, the lighter the load." Barges are the most efficient shipping method as one barge has the capacity of 35 train cars or 134 semi-trucks. The American Commercial Barge Lines said that capacity has been reduced by at least 20%.

Ultimately that leads to higher shipping costs and less profit for farmers. "The majority of our product goes down the Mississippi River for export," said John Dodson, a farmer and a representative of the Soy Transportation Coalition. "And if the terminal cannot take it, if the barges cannot move the grain down to the ports in New Orleans, we’re at a standstill, so those crops just sit in the field." Farmers have lost about $1 per bushel, which is a 10-20% loss, Dodson said.

"The upper Mississippi River is managed by locks and dams, while the river below St. Louis is free flowing," reports Brewer. The U.S. Army Corps of Engineers can release water from the dams upriver to increase depth but that's reserved for "dire situations." For now the Corps is dredging the river to deepen channels while the Coast Guard manages traffic.