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ASA Applauds Senate Passage of WRDA

Jul 20, 2006

The American Soybean Association (ASA) applauds Senate passage of S. 728, the Water Resources Development Act of 2005 (WRDA) by a voice vote last night. Passage of legislation to improve U.S. transportation infrastructure has been a top ASA priority, and for many years the Association, its state affiliates and grassroots members have worked tirelessly for passage.

"Senate passage of the Water Resources and Development Act will provide funding for construction of seven new locks and other improvements on the Upper Mississippi and Illinois rivers," said ASA President Rick Ostlie, a soybean producer from Northwood, N.D. "Over 75 percent of U.S. soybean exports move to world ports via the upper Mississippi and Illinois River systems."

Water resources contribute mightily to this country's economic and environmental well-being. Ports and waterways are integral to the national transportation system and contribute $718 billion to the nation's gross domestic product (GDP) while ensuring domestic and international trade opportunities and safe, low-cost, eco-friendly transportation. The U.S. House of Representative overwhelmingly passed WRDA (H.R.2864) in July 2005, by a vote of 406-14.

S. 728 is founded on the principle that water resources projects provide quality of life benefits through economic growth and the health of our environment. The legislation keeps the nation's commitment to non-Federal sponsors for timely authorizations that solve critical problems, and authorizes not only projects critical to the economy, but also authorizes some of the largest and unprecedented ecosystem restoration efforts in the world.

"Our lock and dam system was constructed during the New Deal to handle 600 foot-long barges," Ostlie said. "Nearly 60 years later, barge tows have doubled in length to 1200 feet, requiring the tow to be split and sent through in two separate sections. These delays result in higher transportation costs, resulting in lower commodity prices and fewer international sales for U.S. farmers. In addition to reducing the cost of operations, upgrading the Mississippi and Illinois waterways would protect jobs. Navigation on the upper Mississippi and Illinois Rivers supports over 400,000 jobs, including 90,000 high-paying manufacturing jobs."

Senator Kit Bond (R-MO) originally introduced WRDA more than a year ago on April 6, 2005. ASA also salutes the work of Senators Tom Harkin (D-IA) Richard Durbin (D-IL), Chuck Grassley (R-IA), Jim Talent (R-MO) and Barack Obama (D-IL) for their longstanding commitment to WRDA and assuring this bill moved one step closer to getting to the President's desk before the end of the session.

"We are one step closer to modernizing our waterways so farmers and producers can be more efficient and more competitive," said Senator Bond. "That's how you protect jobs here at home. Without a competitive transportation system, the promise of expanded trade and commercial growth is empty, job opportunities are lost, and we will be unprepared for the global challenges of this new century."

"Improving shipping lanes for our agricultural exports and other transportation is essential for America’s farmers and other industries to compete internationally," said Senator Harkin, ranking Democrat on the Senate Agriculture Committee. "We are fast approaching the time when we’re going to be playing catch up to foreign competitors instead of staying ahead. This infrastructure modernization needs to begin as quickly as possible."

Not only does this WRDA contain authorizations for greatly needed ports, locks and dams, flood control projects, including beach re-nourishment, and environmental restoration projects, it also contains a number of crucial project modifications.

One of the few remaining advantages U.S. soybean farmers have over our 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.

"Ports are our gateways, allowing us to be competitive, and their channels must be enhanced and maintained to accommodate the new generations of ships sailing to our shores," Ostlie said. "The U.S. maritime transportation system moves more than 60 percent of the nation's grain exports and 95 percent of the nation's imports. Over 50 percent of our locks and dams have aged beyond their life cycle and many are crumbling. These facilities must continue to be modernized while sustaining the aquatic environment."

The U.S. flood damage reduction program saves lives and prevents almost $8 in damages for each dollar spent. In the lower Mississippi Valley, flood control projects return over $24 per dollar spent in property damages saved. Corps hydropower facilities supply 24 percent of the hydropower generated in the U.S. Shore protection projects provide safety from hurricanes and other storm events for transportation, petroleum and agriculture infrastructure around coastal waterways and deltas, as well as recreational benefits, returning $4 in benefits for each dollar invested. Projects for water supply, irrigation, recreation and wildlife habitat provide innumerable benefits. Investing in water resources sustains economic growth and the American worker, directly eases growing congestion on U.S. roads and railroads, and provides a better quality of life.

"Passage of Water Resources and Development Act assures common sense policies to meet contemporary water resources needs, as well as reliable and efficient water resources infrastructure from our coastlines to our ports and inland rivers and Great Lakes," Ostlie said. "Passage of this critical legislation will help provide our children with the infrastructure necessary for an economically and environmentally sustainable future."