USDA lends hand to stranded grain shippers in New Orleans
The U.S. Department of Agriculture will provide assistance to grain shippers with barge shipments stuck in the storm-damaged Port of New Orleans.
In a statement Tuesday, USDA said it’s providing a “temporary incentive” to encourage the immediate movement of about 140 barges of damaged corn (more than 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,” USDA said.
USDA will also pay incentives for alternative storage of about 50 million bushels of grain to ease pressure on producers to market commodities under adverse conditions.
To further reduce stress on grain shippers, USDA will provide a transportation differential to cover the costs of shifting grain shipments to other transportation modes and handling locations.
In addition, the USDA will allow producers forfeiting commodities to the federal government the opportunity to buy back grain when their farm-stored loans mature at the end of September and October.
“This opportunity to purchase is offered on a state-by-state basis and will be available for 60 days at the posted county price,” USDA said. “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.”