A prolonged impact from low river levels is being felt by Iowa farmers as it related to lower cash basis levels. Certainly seeing rainfall which will help but it’s going to take a lot as most is currently sinking in. Matt Miles is a fourth-generation row-crop farmer with a firsthand look at the issue that is going on with the low Mississippi River levels.
“It’s bad. It’s really bad. From September the 15th to the end of September, the basis on soybeans went from maybe a positive five to ten cents now to at one point in time, ten days ago was negative $1. So, and that was just because of barge freight, and they were having to change it daily, because barge freight was changing daily. For instance, today, I’m wanting to apply lime to my fields, through my soil test. There are three barges sitting at the facility at the port that they can’t get to the unloading spout. They’ve been trying to do that for two weeks. So, it’s basically a train wreck down here right now with the river.”
Almost 60 percent of the Midwest grain harvest moves down the Mississippi River system to the U.S. Gulf region for export according to the Agricultural Marketing Services’ grain transportation report.
“Well, we need some water to come down from the North. Last year we got in this same scenario prior to last year. I’ve never even seen this happen. I mean, occasionally maybe once every 10 or 15 years but the last two years it’s been pretty tough.”
The restrictions being put on are a lot like last year, draft and tow restrictions are the worst in parts of Illinois which limits the amount of products that can be carried.
