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ASA Applauds House Passage of the Water Resources Development Act

Jul 15, 2005

The 26,000 members of the American Soybean Association (ASA) congratulate the U.S. House of Representative for passage of H.R. 2864, the Water Resources Development Act (WRDA) of 2005. The legislation, which provides $1.72 billion in funding authorization for lock improvements and $1.58 billion for ecosystem restoration, was overwhelmingly passed today by a vote of 406-14.

"This is truly a victory for the American Soybean Association and for all water resources stakeholders," said ASA President Bob Metz, a soybean producer from West Browns Valley, S.D. "Passage of the Water Resources Development Act proves what can be accomplished through the efforts of a diverse coalition that included farmers, labor unions and transportation."

The lock and dam system on the Upper Mississippi and Illinois Rivers was constructed nearly 60 years ago during the New Deal era to handle 600-foot barges. Today, most barge tows are 1,200 feet long, requiring the tow to be split and sent through one section at a time. This results in delays that increase transportation costs, resulting in lower commodity prices and fewer international sales for farmers.

"This legislation authorizes construction of seven new 1,200-foot navigation locks, small-scale navigation improvements, and ecosystem restoration on the upper Mississippi and Illinois Rivers," Metz said. "The legislation allocates funds for construction of new 1,200-foot locks at Locks 20, 21, 22, 24 and 25 on the Upper Mississippi and at LaGrange and Peoria Locks on the Illinois."

One of the few remaining advantages U.S. soybean farmers have over international competitors is an efficient transportation system, particularly an efficient inland waterway system. Barge transportation on these waterways is not only the most economical means of transportation, it is also the most environmentally friendly way to move U.S. soybeans to foreign and domestic markets.

"More than 75 percent of U.S. soybean exports move to world ports via the Upper Mississippi and Illinois River systems," Metz said. "The effectiveness of this transportation systems impacts the competitiveness of all U.S. soybean exports and the profitability all U.S. soybean producers."

Making the necessary upgrades to improve the Mississippi and Illinois waterways would also protect jobs. Navigation on the Upper Mississippi and Illinois Rivers supports over 400,000 jobs, including 90,000 high-paying manufacturing jobs.

While U.S. farmers are fighting to maintain market share in a fiercely competitive global marketplace, international competitors are investing in transportation infrastructure. Argentina has invested over $650 million in their transportation systems to make their exports more competitive. Brazil is reconstructing its water transport network to reduce the cost of shipping soybeans by at least 75 percent. Due in large part to these efforts, the two countries have captured 50 percent of the total growth in world soybean sales during the past three years.

"Passage in the House was a crucial step toward modernizing the transportation infrastructure on the Upper Mississippi and Illinois Rivers," Metz said. "Now it’s up to the Senate to capitalize on the momentum of today’s House vote by moving it’s own legislation forward to a successful conclusion."

The U.S. Senate introduced WRDA legislation on April 6, 2005.