Members of the American agriculture industry took a backseat to imports in the supply chain last year. Now the Farm Bureau and U.S. Department of Agriculture are pushing to prioritize logistics and transportation needs.
Growers and ranchers expressed frustration during 2021 that perishable goods and products were experiencing risky delays. Reports indicated that full containers were being fast-tracked into U.S. ports while empties were sent back to speed imports from China and other Asian ports. This profit-driving system appears to be partially responsible for a record-shattering trade deficit of $859.1, an increase of 27 percent over the previous high-water mark set in 2006.
“Fewer containers have been made available for U.S. agricultural commodities, as ocean carriers have circumvented traditional marketing channels and rushed containers back to be exported empty, and as a result, many of these carriers have suspended service to the Port of Oakland. USDA is now taking action to reduce these shipping disruptions that have prevented U.S. agricultural products from reaching their markets,” a USDA press release states.
Rather than repeat the bottleneck disaster that plagued the Port of Long Beach and Port of Los Angeles, Agriculture Secretary Tom Vilsack recently brokered a partnership with Port of Oakland officials to restore trucking and shipping services to American-grown agriculture. The deal’s centerpiece involves a 25-acre pop-up location designated for agricultural organizations to fill otherwise empty containers.
“This is an important step that shows the value of players in the supply chain coming together to identify challenges as well as potential solutions,” California Department of Food and Agriculture Secretary Karen Ross reportedly said. “I wish to thank the USDA for making this investment. It will help improve access to overseas markets for California agriculture producers at a critical time of year for exports of high-value specialty crops.”
Farm Bureau officials appear to be taking a legislative approach to avert future agricultural threats. Backed by upwards of 100 organizations, members of the sector are applying pressure on the U.S. Senate to pass a bill that would protect against practices such as empty container returns. The U.S. House of Representatives reportedly passed the bipartisan Ocean Shipping Reform Act of 2021 many want signed into law.
“The transportation crisis for U.S. agriculture products has become increasingly dire. Many agriculture products produced in the U.S. experience significant competition from other countries. If we cannot deliver our products dependably, our foreign customers will find alternatives to our exports,” the American Farm Bureau Federation and supports reportedly wrote to the Senate.
The statement highlighted an Agriculture Transportation Coalition study that indicated upwards of 22 percent of agricultural exports could not be shipped due to unrealistic freight rates, lack of communication, and an unwillingness to book agriculture requests.
The two-prong approach may be the best chance U.S. growers and ranchers have to maintain supply chain cohesiveness and avoid price gauging going forward.
“Farm Bureau commends efforts by USDA to address the challenges farmers and ranchers are facing,” American Farm Bureau Federation President Zippy Duvall reportedly said.
Sources: theloadstar.com, fb.org, wsj.com, usda.gov
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