Durbin Requests Report on State of Shipping on Mississippi River
DURBIN REQUESTS REPORT ON STATE OF SHIPPING ON MISSISSIPPI RIVER
U.S. Senator Dick Durbin (D-IL) has requested that the U.S. Secretary of Agriculture issue a report on the status of shipping crops from Illinois and other Midwestern states after the damage to the Port of New Orleans caused by Hurricane Katrina.
"This has been a tough year for farmers coast to coast," said Durbin. "Illinois and other Midwestern states have already been struggling with a damaging drought. Now Hurricane Katrina has decimated crop production throughout the Gulf Coast and the damage it has caused to the Port of New Orleans will increase shipping and energy costs for farmers nationwide. New Orleans processed more than 50 percent of the nation's grain. The loss of the Port, even temporarily, could spell disaster for this year's harvest."
"Damage to the Port of New Orleans will bring about increases in transportation and fuel costs for producers nationwide and it is not clear that other transportation options can fill the gap," wrote Durbin in a letter to Agriculture Secretary Mike Johanns. "In Illinois, farmers who have already suffered through a summer drought are unsure now if their products will reach the market with commercial operations at the Port of New Orleans delayed."
"It is clear the export market will feel a lingering effect of Hurricane Katrina for some time and our farmers are looking to you to help them in this time of need," Durbin wrote. "I look forward to a report from you on the state of shipping agriculture products via the Mississippi River."
Full text of Durbin's letter to Secretary Johanns appears below.
September 7, 2005
The Honorable Mike Johanns
Secretary of Agriculture
United States Department of Agriculture
14th Street and Independence Ave., SW.
Washington, DC 20250
Dear Secretary Johanns:
I am writing to respectfully request a report on the status of shipping agricultural products from Illinois and other Midwestern states in light of the damage to the Port of New Orleans. As the extent of the damage caused by Hurricane Katrina becomes apparent it appears the Gulf based export market - an important part of the U.S. corn and soybean market - may be affected.
Damage to the Port of New Orleans will bring about increases in transportation and fuel costs for producers nationwide and it is not clear that other transportation options can fill the gap. In Illinois, farmers who have already suffered through a summer drought are unsure now if their products will reach the market with commercial operations at the Port of New Orleans delayed. It is my understanding that only daylight movement is expected for quite some time due to the destruction of 68 of 106 navigational aids by the storm. This cuts capacity by about 50% compared to previous levels with 24 hour operations.
While the extent of the destruction resulting from Hurricane Katrina will not be fully known for weeks or months, economists project a billion dollar price tag for farmers as a result of the growing waterway shipping crisis and soaring fuel prices. In my home state of Illinois, from August 26-31, farmers suffered a 5-15 cent basis drop for both corn and soybeans, depending on location.
Thank you for your attention to this important issue. It is clear the export market will feel a lingering effect of Hurricane Katrina for some time and our farmers are looking to you to help them in this time of need. I look forward to a report from you on the state of shipping agriculture products via the Mississippi River.
Sincerely,
Richard Durbin
United States Senator
http://durbin.senate.gov/record.cfm?id=245374&&