NEWS
UNITED STATES DEPARTMENT OF AGRICULTURE
Office of Communications News Room 460-A Washington, DC 20250-1300
Internet: News@usda.gov Phone:
202-720-9035
World Wide Web Home Page: http://www.usda.gov
Release No. 0389.05
Contact:
Terri Teuber (202) 720-4623
Kent Politsch (202) 720-7163
USDA TAKES ACTION TO EASE GRAIN TRANSPORTATION
WASHINGTON, Sept. 20, 2005 - Agriculture Secretary Mike Johanns today said USDA
is taking additional steps to further reduce stress on the grain transportation
system caused by Hurricane Katrina. The actions include assisting with the
movement of barges of damaged corn from New Orleans; providing incentives for
alternative grain storage; encouraging alternative shipping patterns to relieve
pressure; and allowing producers to store USDA- owned corn on the farm with the
option to purchase.
"These actions, in conjunction with the tremendous work being performed by the
U.S. Army Corp of Engineers, will help the transportation system return to
normal as quickly as possible," said Johanns. "The drought is contributing to
the stress along the Mississippi River by decreasing the flow, so we are
encouraging alternative routes and means of transportation in addition to the
steps we are taking to relieve the pressure on farmers and related businesses."
USDA is providing a temporary incentive to assist immediate movement of some 140
barges of damaged corn (over 7 million bushels) out of New Orleans to up-river
locations. Once unloaded, the empty barges will continue up the river to load
and begin moving new-crop commodities. In addition, to help producers deliver
and sell crops in the absence of barge transportation caused by the hurricane,
USDA also will pay incentives for alternative storage of up to 50 million
bushels of grain.
These actions will further ease pressure on producers to market commodities
under adverse conditions.
To reduce stress on the Central Gulf transportation and handling system, USDA
will provide a transportation differential to cover the costs of moving grain to
other river transportation modes and handling and locations.
To further alleviate grain movement into the Mississippi River, USDA will allow
producers forfeiting commodities to USDA the opportunity to buy back the grain
when their farm-stored loan matures at the end of Sept.
and Oct. This opportunity to purchase is offered on a state-by-state basis and
will be available for 60 days at the posted county price. These producers
typically would be required to immediately move the forfeited commodity to
commercial warehouses. This action also reduces the pressure on commercial
storage availability.
For more information about programs affected by today's announcements, producers
should contact their local FSA office or visit FSA's Web site at
http://www.fsa.usda.gov .