The American Soybean Association (ASA) applauds action by the U.S. House Subcommittee on Water Resources and the Environment to protect the integrity of the Inland Waterways Trust Fund by rejecting the Administration’s plan to divert its resources to other projects.

The Administration’s Fiscal Year (FY) 2004 Budget called for using $146 million from the Inland Waterway Trust Fund to pay for everyday operations and maintenance expenses. This plan would have violated the agreement shippers reached in 1980 to pay higher fuel taxes, which would later be used for lock improvements. Under the terms of the 23-year-old agreement, barge operators pay 20-cents per gallon in fuel taxes into the Inland Waterways Trust, which currently contains approximately $400 million.

"Our river transportation resources benefits all Americans, even those who live in states that are not directly adjacent to the river," said ASA President Dwain Ford, a soybean producer from Kinmundy, Ill. "This system is critical to the competitiveness of U.S. agricultural exports, which contribute billions of dollars to the United States trade balance each year."

Antiquated locks and dams that were built before World War II are deteriorating and need to be expanded to accommodate modern barge tows. While U.S. farmers are fighting to maintain market share in a fiercely competitive global market place, our international competitors are investing in transportation infrastructure. Argentina has invested over $650 million in its transportation systems to make its grain more competitive. Brazil is reviving its water transport network to reduce shipping cost for soybeans by at least 75 percent.

"River transportation is the most economical way to ship bulk commodities and it is also the most environmentally friendly method because it is the most fuel-efficient," Ford said.

Last month, ASA mailed to every member of the United States Congress a packet of educational materials designed to help members and their staff appreciate the importance of river transportation and the urgent need for infrastructure improvements on the Upper Mississippi River system. The mailing included a brochure and letter from ASA President Ford, plus a multimedia presentation on CD-ROM that was sponsored by ASA and Bayer CropScience. The presentation featured a virtual tour of Mississippi Lock No. 20 at Canton, Mo., that is also available on ASA’s web site at www.soygrowers.com/step/barge.htm.

"A $146 million diversion could have been detrimental to ASA’s efforts to modernize the locks and dams along the Mississippi and Illinois Rivers. We appreciate the Subcommittee’s commitment to this issue," concluded Ford.