Key ag drawing card shared with the Department of Transportation that the most problematic supply chain take for the ag industry include deportation price , Labour Party availability , rising Department of Energy costs , and challenges with obtaining input signal and products for the ag sphere .
In response to President Joe Biden ’s Feb. 24 , 2021 , Executive Order on America ’s Supply Chains , key participants in the agrarian industry detail the key business for an industry affect on multiple level in two letter , one signed by the Ag CEO Council of the 17 top ag groups as well as another written on behalf of the Agricultural Transportation Working Group .
The causes of these supplying chain issues have been multifold . Tariffs and the business deal state of war disrupted market place and ensue in higher domestic brand and Al prices . Cyberattacks have taken down texture elevator and a backpacking plant . The West and Upper Plains have suffered droughts , which have reduced foraging , increased irrigation needs , and lowered river levels . Hurricane Ida fill up the Gulf port , slow up Mississippi River dealings , and closed chemic plants . Perhaps most importantly , the Covid-19 pandemic has affected almost every aspect of the supply chain , from transfer costs to labor availability , the CEOs drop a line .
LaborLabor shortages subsist on the farm , in march facilities , and among critical religious service provider . A National Council of Farmer Cooperative survey found that 77 % of answer coops had exit retaining a skilled hands during the pandemic . Union food safety inspector shortfall trammel products that can be sell and shipped , according to the chief operating officer varsity letter .
ATWG add together unequal labour availability is the large supply chain constraint facing the U.S. farming industry . “ ATWG member are ineffectual to fill heart-to-heart positions throughout the output , expatriation , warehousing , and processing phases of the supply chain . These shortages are directly impacting our member ’ ability to meet consumer demand , ” the grouping writes .
They indicate , within the Department of Transportation ’s jurisdiction , policy to increase trucking productivity would be helpful , as would harmonizing the Union truck beat back age demarcation line with the state age terminal point to provide a more approachable nerve pathway into the hauling industriousness for drivers aged 18 - 20 . They also write that they bear out the role of vaccines to fight the banquet of Covid-19 , but , as announce , the Emergency Temporary Standard ask vaccines could “ cause serious labor dislocation for agribusinesses . ”
BargesHurricane Ida closed the Lower Mississippi River and grain unloading facility in New Orleans . caryopsis shipping book and damage have yet to recover . luckily , eight of the nine facility operating before Ida are now back online . However , postponement from the storm have created a reserve in the exile organisation .
Drought in the Upper Mississippi basin has created low flows this year . fortuitously , dredging continue the distribution channel at a depth that enable dealings to retain with full load . However , report of light-colored - loading due to the low river level resulting from the drought are developing , the Ag CEO write .
Ports and shipping containersImport mass have overloaded marine terminal , particularly on the West Coast , induce shipping delays , canceled bookings , and surcharge . container are leave the U.S. empty rather than being filled and returned with agricultural products , as is normal practice session .
Accessibility to export container has been further determine by record shipping costs and harmful surcharges . Freight charges from Asia to the U.S. have been driven as high as $ 15,000 to $ 20,000 per container . By comparison , freight billing for an export container carrying farming product typically cost $ 400-$1,800 , the Ag chief executive officer write . With these agent coalesce , the ability for farmers and ranchers to fulfill overseas declaration has been significantly affect , with some estimation approach $ 1.5 billion in fall back agricultural exports , the ATWG take note . To record the complete clause , go to www.farmprogress.com
