Even in a declining agricultural economy, there is a bright spot. Collin Watters, Director of Exports and Logistics with the Illinois Corn Marketing Board, says corn exports are a “brighter spot.”
“We had record exports this past marketing year, and I suspect that the current marketing year will probably be big again,” says Watters. “We’ve got a big crop. U.S. corn is just very, very competitive in the world market right now, and that’s helping to alleviate the burdensome supplies that we have. So, cautiously optimistic.”
One challenge corn faces is the low water levels on the Mississippi River, which are forcing reductions in draft and tow sizes. This results in less efficient modes of transportation and higher costs.
“The logistics network is so integral to our ability to export. If we didn’t have access to the rivers and the rail industry that we have, it would be a very, very different picture,” says Watters. “So, yeah, we tend to focus on logistics simply because the more efficient the logistics systems can be, the more competitive the exports can be.”
Watters notes that while water levels are low, the situation is not “catastrophic.”
