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New
USDA Study Supports NCGA's Position on River Improvements (1-31-02)
A recent
USDA study validates many of the arguments posed by the National Corn
Growers Association (NCGA) concerning the critical need for improvements
to the transportation system of the Upper Mississippi and Illinois Rivers.
Paul Bertels, director of production and marketing for NCGA, said, "USDA's
report, 'Agriculture in Brazil and Argentina: Developments and Prospects
for Major Field Crops' confirms the positions of the 32,000-member organization
on remodeling locks and dams.
"The study
largely confirms many of the arguments NCGA and others have been making
regarding the need to improve the Upper Mississippi and Illinois Rivers,"
continued Bertels. "Our competitive advantage in global grain markets
is rapidly eroding. The world population is forecast to grow to 7.6
billion by 2020. For the U.S. to capture an increasing share of the
global food demand, we need to increase the efficiency of our transportation
systems. Otherwise, we will surrender another valuable market to our
competitors. The Argentines and the Brazilians are gaining ground, largely
through lower cost production, expanded production and infrastructure
improvements."
Bertels summarized
some of NCGA's key points on river issues:
* In any given year
60 percent of the bulk agricultural exports are moved to world ports
via the Upper Mississippi and Illinois Rivers.
* U.S. Army Corps of Engineers indicates seven 1,200-foot lock chambers
and five extended guidewalls on the Mississippi and Illinois Rivers
would have a positive net benefit to the nation.
* The U.S. Army Corps of Engineers estimates that every $1 invested
in navigation projects yields $6 in national benefits.
* Navigation on the Upper Mississippi and Illinois Rivers supports over
400,000 jobs, including 90,000 high-paying manufacturing jobs.
The USDA report, which quotes Bertels and NCGA grower-leaders and Iowa
farmers Bill Horan and Tim Burrack, makes several other points concerning
the advancement of South American agriculture in recent years. One key
element is how Argentine corn production has increased 105 percent since
1990 and Brazilian corn production has jumped 40 percent in that same
time frame. Bertels said part of the increase is clearly the result
of their transportation system improvements.
"Economic and
policy reforms as well as an improved transportation and marketing infrastructure
in those two countries have lowered production and marketing costs and
has made transmission of international market signals higher in quality,"
he said.
The situation in
these South American corn-exporting countries will only improve, noted
Bertels. "It's highly probable Brazil and Argentina will expand
area devoted to agricultural production in the coming years as well
as increasing their potential to increase yields for several of their
crops, including corn."
"I believe
this report is valuable reading for anyone looking at the future of
production agriculture in the U.S.," concluded Bertels.
Last
reviewed January 31, 2002
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