IN THIS WEEK’S EPISODE: The economy may be stretched thin, but farmland values stay strong, at least for now. In our Southern Gardening segment, Eddie says it may be chilly, but you can still “go TROPICAL.” In the markets, record cattle prices in the news – and some say it could be more of a permanent thing. And in our feature, the inside story on a not-so-obvious supply chain “symphony.”
Watch Farmweek on Thursdays at 4:30 CST on The RFD Network, or on Saturdays at 6:00 PM CST on Mississippi Public Broadcasting (repeat on Mondays at 6:00 AM CST).
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ANNOUNCER “CELEBRATING 46 SEASONS ON THE AIR, AWARD- WINNING FARMWEEK IS A PRODUCTION OF MISSISSIPPI STATE UNIVERSITY EXTENSION.” TODAY ON FARMWEEK, THE ECONOMY MAY BE STRETCHED THIN, BUT FARMLAND VALUES STAY STRONG, AT LEAST FOR NOW. IN SOUTHERN
GARDENING, EDDIE SAYS IT MAY BE CHILLY, BUT YOU CAN STILL “GO TROPICAL.” IN THE MARKETS, RECORD CATTLE PRICES IN THE NEWS. AND SOME SAY IT COULD BE MORE OF A PERMANENT THING. AND IN OUR FEATURE, THE INSIDE STORY ON A
NOT-SO-OBVIOUS SUPPLY CHAIN SOLUTION. FARMWEEK STARTS RIGHT NOW! HELLO, EVERYONE, I’M ZAC ASHMORE. JIB MIKE AND I’M MIKE RUSSELL. GOOD TO HAVE YOU WITH US AGAIN HERE ON FARMWEEK. MIKE MIKE JUST DAYS AGO, THE FED CHAIR SAID
A MARCH RATE CUT IS UNLIKELY. THE HIGHER BORROWING RATE WAS THOUGHT TO BE A DAMPER ON FARM LAND SALES. BUT CASH STAYED KING WHICH LED TO A FLURRY OF SALES. PETER TUBBS HAS THE STORY. PKG “RESILIENCY” SUMMARIZED THE
SALE OF FARMLAND OVER THE LAST SIX MONTHS OF 2023 ACCORDING TO FARMERS NATIONAL COMPANY. PAUL SCHADEGG, SENIOR VP, FARMERS NATIONAL COMPANY, OMAHA, NE: “The input costs have settled somewhat, but they’re still pretty pricey. And so even
With all those factors, we’re still seeing land values maintain the levels that they’ve increased over the past three years.” SCHADEGG, THE COMPANY’S SENIOR VP OF REAL ESTATE OPERATIONS, SAYS THE LATE RALLY CAME AFTER A SUMMER SLOWDOWN IN
LAND SALES. PAUL SCHADEGG: “We got into the end of August, early September, and it’s like they kicked it in high gear. And we had one of the strongest, well, maybe the strongest September we’ve ever seen as a company. That
Allowed a lot of these operators to get into harvest, understand that they had better yields than they anticipated.” TRADITIONALLY, HIGHER INTEREST RATES SLOW THE SALE OF FARM LAND AND OTHER BIG TICKET ITEMS. PAUL SCHADEGG: “We’re finding out
How much cash people have in their pockets, and it’s more than we thought. However, I’m gonna say that going into 2024, where we’re already seeing an increase in lending, and along with that, those higher interest rates, so operators are
Gonna have some additional expense to pay in the form of interest rates on a land loan. And then just the fact that they’re going in and there’s a higher volume of requests for loans.” SCHADEGG ADDS THE INCREASE IN DEMAND FOR
LENDING COULD CHANGE THE WAY A SALE ENDS. PAUL SCHADEGG: “I think that we’re going to start to see more ‘No Sales’ because of that. And the ‘No Sales’ are a combination of, you know, we’re a little bit too ambitious on
What we think that land is going to bring today. It’s still bringing record values than what we’ve seen in the past 25 years.” COMMODITY MARKETS, LIKE ALWAYS, ARE THE KEY DRIVER IN KEEPING LAND VALUES AT A HIGHER LEVEL.
PAUL SCHADEGG: “There are still simply more motivated buyers than there are willing sellers. It’s just as simple as that. And that’s where that competition is created and will continue to be created.” MIKE MIKE FARM LAND VALUE,
OF COURSE, ONE OF THE MAJOR INDICATORS OF OVERALL AG STRENGTH. NEEDLESS TO SAY, IT IS REFLECTED IN THE VOLUME AND PRICES OF THE COMMODITIES THAT -DRIVE- AG STRENGTH. MORE ON THAT IN A ZAC IN EUROPE, FARMERS UNHAPPY
WITH THEIR LAWMAKERS’ ATTEMPTS TO CUT FUEL SUBSIDIES AND -FORCING- SOME FIELDS TO LIE FALLOW INSTEAD OF PRODUCING A PROFIT. THIS ONGOING FOR SOME TIME, BUT IT WOULD SEEM THEIR PROTESTS ARE BEARING FRUIT. DAVID MILLER REPORTS. PKG PKG
EUROPEAN UNION FARMERS TOOK TO THEIR TRACTORS AGAIN THIS WEEK, KEEPING THE PRESSURE UP IN THEIR WEEKS-LONG SERIES OF PROTESTS. AT ISSUE ARE CUTS TO AGRICULTURAL FUEL SUBSIDIES, HIGHER ENVIRONMENTAL TAXES, AND INCREASED IMPORTS OF LOWER COST
COMMODITIES. NATS: Protest MEMBERS OF SEVERAL EUROPEAN FARM GROUPS SAY THERE IS A LACK OF SUPPORT FOR THEIR PLIGHT FROM THE EUROPEAN UNION COMMISSION IN BRUSSELS. IN RESPONSE, THE EC ANNOUNCED PLANS TO SHIELD FARMERS FROM CHEAPER IMPORTS
DUE TO THE NEARLY TWO-YEAR OLD UKRAINIAN WAR, AND WILL ALLOW FARMERS TO USE LAND FORCED TO LIE FALLOW FOR ENVIRONMENTAL REASONS. NATS: Honking IN FRANCE, EARLIER IN THE WEEK, WHERE THE PROTESTING HAS BEEN PARTICULARLY DISRUPTIVE, GOVERNMENT
OFFICIALS SHOWERED FARMERS WITH PROMISES OF HELP, INCLUDING EMERGENCY AID AND CONTROLS ON IMPORTED FOOD. MIKE MORE NOW ON AG STRENGTH. EVERY YEAR, MISSISSIPPI STATE UNIVERSITY EXTENSION HOSTS AN AG OUTLOOK CONFERENCE FOR AG -LENDERS.- BUT THIS YEAR,
UNCERTAINTY… …FROM A NUMBER OF ANGLES IN THE STATE AND NATIONAL ECONOMIES LED MSU TO OPEN THE CONFERENCE UP TO A BROADER AUDIENCE. PKG KEVIN KIM, ASST. PROF, AG ECON, MISSISSIPPI STATE UNIV: “In terms of farm economy, I
Think there’s a great, great uncertainty. So 2022 was a great year, and 2023 we sort of saw a decline in farm income, and such trend is expected to continue for 2024. And also adding to that, we had droughts, high
Inflation, and high interest rates.” AND WITH THOSE WORDS, THE ORGANIZER OF MISSISSIPPI STATE’S AG OUTLOOK FORUM KEVIN KIM UNDERSCORED HOW VIRTUALLY ALL THE STAKEHOLDERS IN MISSISSIPPI’S AND THE NATION’S — AG ECONOMY ARE FEELING. KEYNOTE
SPEAKER NATHAN KAUFFMAN FROM THE FEDERAL RESERVE CAUTIOUSLY OPTIMISTIC TOLD HIS AUDIENCE THAT IF GOVERNMENT PAYOUTS WEREN’T PART OF THE PICTURE OVER THE LAST FEW YEARS… NATHAN KAUFFMAN, FEDERAL RESERVE, KANSAS CITY: “…You would have
Seen delinquency rates continuing to rise, continuing to see financial pressure, and that’s not what we’ve seen. Not only have we not seen the increase in delinquencies, we actually have a new record low of delinquency rates on
Farm loans. So all of this is going to be consistent with what I was describing earlier of the strength in ag over the past three years. And it’s extremely important in terms of what’s going to drive the outlook for
Agriculture over the next year or two. Even though we likely will see thinner profit margins and we will see incomes declining, it’s not going to generate real significant financial stress because we’re coming off of one of the lowest periods of
Financial stress in agriculture that we’ve had really in history.” A NUMBER OF EXPERTS WERE ON HAND FOR THE AG OUTLOOK FORUM, INCLUDING THOSE ON THE FINANCE SIDE, WHO PLAY A CRITICAL ROLE IN HELPING PRODUCERS MANAGE THEIR ECONOMIC RISK.
SOUTHERN AGCREDIT’S ELLIOTT FANCHER GIVES A NOD TO MISSISSIPPI STATE EXTENSION AND ITS NETWORK OF COUNTY AGENTS. ELLIOTT FANCHER, SOUTHERN AGCREDIT, GREENWOOD, MS: “FSA uses Mississippi State’s price projections. So usually when our board meets, they
Like to lean on what FSAs want to go with. So if you translate that back, it’s coming from Mississippi State Extension. So that’s why I keep in touch with a lot of these agents throughout the year. Lean on them with some
Questions. They’re able to send me some information that it helps. Helps out a lot.” MIKE MIKE MUCH INSIGHT COMING OUT OF THAT CONFERENCE. NATHAN KAUFFMAN HIGHLIGHTED THE IMPACT OF LABOR MARKETS, CONSUMER SPENDING, AND INTEREST RATES
ON AG STRENGTH. HE DID SAY THAT CONDITIONS HAVE TIGHTENED SINCE LAST YEAR, AND SAID THE STRENGTH OF THE -GLOBAL- ECONOMY WILL BE A FACTOR IN 2024. ZAC ZAC ON THE LIGHTER SIDE, THE LOQUAT — ACTUALLY NATIVE
TO -ASIA-, BUT NOW COMMONLY GROWN HERE IN THE U-S AS AN ORNAMENTAL TREE — HAS A SPECIAL PROPERTY FOR THIS TIME OF YEAR. IT -FRUITS- IN THE WINTER. HERE’S EDDIE WITH MORE ON WHAT MAKES IT SUCH A GREAT ADDITION TO
-ANY- GARDEN OR LANDSCAPE. PACKAGE PACKAGE DR. EDDIE SMITH: “Today, Southern Gardening is in Lucedale, MS admiring this beautiful loquat tree that’s producing fruit in the middle of winter.” THE LOQUAT TREE, ALSO KNOWN AS “JAPANESE PLUM,”
IS A SMALL TO MEDIUM-SIZED EVERGREEN TREE THAT IS NATIVE TO CHINA, BUT NOW IS WIDELY GROWN IN MANY COUNTRIES AROUND THE WORLD. THE TREE IS PRIZED FOR ITS ATTRACTIVE FOLIAGE, FRAGRANT FLOWERS, AND DELICIOUS FRUIT.
ONE OF THE MOST STRIKING FEATURES OF THE LOQUAT TREE IS ITS DENSE AND ROUNDED CANOPY OF GLOSSY, DARK GREEN LEAVES. THE LEAVES ARE SIMPLE, ALTERNATE, AND LANCEOLATE IN SHAPE, WITH A LENGTH OF 4-10 INCHES AND A
WIDTH OF 2-4 INCHES. THE LEAVES ARE LEATHERY AND HAVE A PROMINENT VEIN THAT RUNS PARALLEL TO EACH OTHER. THEY PROVIDE EXCELLENT SHADE AND ARE HIGHLY ORNAMENTAL, MAKING THE LOQUAT TREE AN IDEAL CHOICE FOR LANDSCAPING. IN
THE LATE FALL AND EARLY WINTER, THE TREE PRODUCES CLUSTERS OF SMALL, FRAGRANT WHITE FLOWERS. THE FLOWERS ARE HIGHLY FRAGRANT AND CAN BE SMELLED FROM A DISTANCE. THE FRAGRANCE ATTRACTS BEES AND OTHER POLLINATORS TO
THE TREE, WHICH HELPS TO ENSURE THAT THE FLOWERS ARE ADEQUATELY POLLINATED AND THAT THE TREE WILL PRODUCE A GOOD CROP OF FRUIT. THE SMALL, ROUNDED, OR OVAL-SHAPED FRUIT THAT MEASURES ABOUT 1-2 INCHES IN DIAMETER HAS A
THIN, FUZZY SKIN THAT RANGES FROM YELLOW TO ORANGE IN COLOR. THE FRUIT CAN BE EATEN FRESH OR USED TO MAKE JAMS, JELLIES, AND OTHER DESSERTS. DR. EDDIE SMITH: “Loquats can be grown from zones 7 to 10, but obviously,
Because the fruit has to go through the winter, you’re more likely to get a crop in central and southern Mississippi. I’m Eddie Smith, and I will see you next time on Southern Gardening.” JIB MIKE MIKE WE’LL TAKE A
SHORT BREAK, BUT STICK AROUND. COMING UP ON OUR FARMWEEK FEATURE, AN EXTENDED VERSION OF A STORY WE BROUGHT YOU NOT LONG AGO… …THE SUPPLY CHAIN CHALLENGES OF RECENT YEARS ACTUALLY SPARKED SOME CREATIVE RESPONSES — RESULTING IN NEW
WAYS FOR GOODS TO GET FROM ONE PLACE TO ANOTHER. SHIPPING FROM THE COASTS HAS ALWAYS BEEN POPULAR, BUT THE GREAT LAKES REGION HAS TURNED INTO A -NEW- FAVORITE. WE’LL VISIT CLEVELAND AND DULUTH, WHERE SMART OPERATORS MAKE FOR SAVVY
SHIPPING. FIRST-RATE FREIGHT, COMING UP ON FARMWEEK. DON’T GO AWAY. MUSIC JENNIFER JOSEPH, MSU EXTENSION AGENT: “I believe in people and their hopes, their aspirations and their faith, and their right to make their own plans and arrive at their own decisions,
And their ability and power to enlarge their lives and plan for the happiness of those they love.” MUSIC “I believe that education — of which Extension work is an essential part — is basic in stimulating individual initiative, self-determination, and leadership, that
These are the keys to democracy and that people when given facts they understand will act not only in their self- interests, but also in the interest of society.” MUSIC ” Because I believe these things, I am an Extension professional.” MUSIC MUSIC
JIM MCADORY, MSU EXTENSION AGENT: “I believe in people, and their hopes, their aspirations, and their faith…” MUSIC “…I believe in intellectual freedom, to search for and present the truth, without bias, and with courteous tolerance for the views of others.” MUSIC
“…I believe that education is a lifelong process and the greatest university is the home. That my success as a teacher is proportional to those qualities of mind and spirit that give me welcome entrance to the homes of the families
I serve.” MUSIC “Because I believe these things, I am an extension professional.” MUSIC JIB MIKE TIME FOR THE MARKET REPORT, A FEW SURPRISES LAST WEEK. JIB ZAC THAT’S RIGHT, SOME COMMODITIES MAKING BIG MOVES, WE’LL GET INTO IT, BUT FIRST…
…THE NUMBERS – WHAT WERE LAST WEEK’S BIGGEST GAINS AND LOSSES? AND THEN – IN OUR ROW REPORT, WE LOOK AT WHAT’S MOVING ROW CROPS, AND FINALLY – A DIVE INTO CURRENT CATTLE PRICES, WHY ARE THEY THEY SO HIGH? ZAC
SO, MARKETS SPLIT LAST WEEK, ROW CROPS DOWN WITH ONE EXCEPTION WHILE LIVESTOCK ON THE WAY UP. LET’S TAKE A LOOK. LAST WEEK’S BIGGEST GAIN? -COTTON- UP ABOUT 2-AND-3- QUARTERS CENTS, A 3-AND-A-QUARTER PERCENT RISE FROM THE PREVIOUS WEEK.
LAST WEEK’S BIGGEST LOSS? -SOYBEAN OIL- DOWN 20-AND-3- QUARTERS CENTS, AN OVER 4-AND-A- HALF PERCENT DROP FROM THE PREVIOUS WEEK. ZAC SO, WHAT’S THE CAUSE OF ROW CROPS FALLING? ACCORDING TO CHRIS ROBINSON, IT HAS TO DO WITH TRADERS COMING
TO TERMS WITH GRAINS ESPECIALLY CORN AND WHEAT AT THE LOWEST PRICES IN QUITE A WHILE. SOT SOT CHRIS ROBINSON, MARKET ANALYST: “We have to start somewhere. We’re at three year lows. That’s the problem of
Corn and wheat. We’re at three year lows. And everybody for the last year has been like, ‘okay, is the low end, is the low end, is the low end.’ And it’s just been very, very difficult. And so, yeah, I think if there
Is a rally, it could come from something in Europe. If you talk about corn, you’ve got to talk about old crop or new crop. So, old crop is March. That’s what’s out there and that’s under a lot of pressure. This level,
This, this. $4.50 level $4.40 level is very, very big going all the way back to 2013 to 2017. That was the top we remember that was considered a really good price, $4.30. So we’re kind of dancing with that
Level now. I think if that was to fail, if the $4.30 support fails, then you’ll see kind of a natural as the market tries to find support. So I would anticipate that if that doesn’t hold, we go to $4.20, $4.25 you
Know, as far as making the big call, the same people that, you know, last summer when we were at six, $6 corn said we were going to eight. I’d be. I’m worried that just because we’re at $4.40 doesn’t mean
We’re destined to go to $3.50. It’s a possibility. It’s always a possibility, but we’re having, we’re putting up a very good fight at this $4.40 level. We had a 25, 30 cent a nice rally in soybeans. And again what happened
There were no legs. So I think that in the soybean market, which is still relatively in good shape, if you look at new crop soybeans, which is what I’m kind of looking ahead to, you know, we were right there
Fighting at that $12 level. A month and a half ago we were at 13 bucks. People were like, okay, here we go. I would say this. And the last time I was on around Thanksgiving, I said try to defend $12
Beans, try to defend $5 corn. And I think that that’s the level I think a lot of people are going to be looking at if we get corn back up north of five bucks, do something. If we get beans north of $12,
Try and do something. There’s some good fundamentals driving cotton. We’ve had a really nice recovery. $0.90 is going to be a big target for next year’s cotton, but I think we’re at three or four month highs in cotton right now.
It’s a great recovery rally. And it is the one silver lining. And I was talking to some guys in the Delta today that, you know, are they going to plant cotton or beans? Most of them are probably going to end up planting
Beans just because of the economics, because even today at $12 or, you know, $11.80 beans where we’re at, that’s still profitable for most guys. But cotton is a great story. If you’re looking for a bull story.” ZAC ZAC
IN THE CATTLE MARKETS, PRICES STILL HIGH COMING INTO THE NEW YEAR, AND FOR THE SAME REASONS AS THE LAST. HERE’S A RECAP OF WHAT’S GOING ON BOLSTERED BY A RECENT USDA CATTLE REPORT. PKG PKG ACCORDING TO
THE USDA, ALL CATTLE AND CALVES ON FEED ARE DOWN 2 PERCENT FROM JANUARY LAST YEAR AND THE FINAL REPORT FROM CALF INVENTORY OF 2023 SHOWS THAT CALVES ARE ALSO DOWN 2 PERCENT FROM 2022. SUBSEQUENTLY, IN THE SAME REPORT,
CATTLE AND CALVES ON FEED FOR THE U.S. SLAUGHTER MARKET ARE UP 2 PERCENT COMPARED TO JANUARY LAST YEAR. SO, WHAT DOES THAT MEAN FOR CURRENT CATTLE PRICES? SO, JUST A QUICK RECAP ON WHY HERDS ARE LOW IN
THE FIRST PLACE. THIS IS AN ISSUE WE’VE COVERED FOR THE PAST SEVERAL YEARS AND IT HAS TO DO WITH ONGOING DROUGHT IN THE MIDWEST THAT’S ALSO AFFECTED THE SOUTHEAST. ACCORDING TO CATTLEFAX IN A RECENT REPORT, IT LOOKS LIKE CATTLE
PRICES THIS YEAR MAY CONTINUE TO BE HIGH, POTENTIALLY FOR THE NEXT SEVERAL YEARS AS THE HERDS REBUILD. THEY PROJECT THAT FED STEERS WILL BE UP 9 DOLLARS, FEEDER STEER UP 20 DOLLARS, STEER CALVES UP 28 DOLLARS, AND
UTILITY COWS UP 16 DOLLARS. ALL IN COMPARISON TO LAST YEAR. ZAC ZAC SO WHAT DO THE ANALYSTS HAVE TO SAY ABOUT IT? ACCORDING TO CHRIS ROBINSON THE RALLY WE’RE SEEING HAS MORE TO DO WITH FEEDER CATTLE THAN LIVE CATTLE.
CHRIS ROBINSON, MARKET ANALYST: “I wanted to talk about that today. The deferred months for not only live cattle but even feeder cattle. They are just gone vertical. So I’m talking about June, July, August. We kind of have two
Markets. So if you’re a producer out there, we’ve got a tremendous recovery in the spot months after we had that debacle. The October to Dec., you know, that was just a horrendous sell off. We’ve clawed back a huge percentage of
That, 50 to 60% of that. But I think the big story is deferred. That’s a great opportunity for producers. You know, expensive prices out there. It’s just like when we were at, you know, $6.50 corn, maybe it doesn’t last forever.
It’s a great opportunity for producers. The feeder cattle, especially this rally post report, was really fueled by more feeder cattle than live cattle. That’s and then again, that has to do with the economics of the size of the herd that’s
Coming out there. That’s, you know, it takes time to rebuild the herd. Now, here’s the other problem with this. Usually when it hits the headlines, sometimes the headlines put the highs in, right. You know, we’re back here and around
Thanksgiving, we had the hot and dry in South America, Brazil, that was almost the top. And then we had the $2 break in soybeans. So take advantage of when these markets have these nice rallies, take advantage of it.” ZAC
AND THAT’S IT FOR A DEEPER LOOK INTO THE MARKETS. MIKE? MIKE? MIKE MIKE SO YOU’VE HEARD SO YOU’VE HEARD OF MAKING LEMONADE FROM LEMONS, RIGHT? THE SUPPLY CHAIN CHALLENGES THAT CAME WITH THE PANDEMIC PROMPTED SHIPPERS AND SHIPPING
COMPANIES TO PUT ON THEIR THINKING CAPS AND LOOK FOR BETTER WAYS TO MOVE GOODS OUT OF THE MIDWEST. TURNS OUT THE GREAT LAKES REGION WAS THE ANSWER. LAURA WEBER DAVIS HAS MORE. PKG SINCE 2020, BACKUPS AT PORTS
IN THE ATLANTIC AND PACIFIC COASTS HAVE LEFT CARGO SHIPS STACKED UP WAITING TO UNLOAD IN THE U.S. — AND RISING FUEL COSTS, CONGESTED HIGHWAYS, AND A SHORTAGE OF TRUCK DRIVERS ARE ALSO CREATING HEADACHES FOR BUSINESSES
WANTING TO GET THEIR GOODS IN OR OUT OF THE U.S. INTERIOR, AND THEY’RE LOOKING FOR OTHER OPTIONS. WILL FRIEDMAN IS PRESIDENT AND CEO OF THE PORT OF CLEVELAND. WILL FRIEDMAN, PRES & CEO, PORT OF CLEVELAND: “The companies that
Need to move these goods, either as a manufacturer or as a retailer, they’re pretty desperate. And so, you know, necessity is the mother of invention – and they’re now asking much more so than previously, ‘Why can’t we get a ship
Into Cleveland and just avoid all that gridlock at those big ports?'” BUT REROUTING CARGO FROM CONGESTED COASTAL PORTS TO CLEVELAND ISN’T SO SIMPLE. ON THE GREAT LAKES, FREIGHTERS MAINLY MOVE BULK CARGOES LIKE IRON ORE, GRAIN AND COAL THAT
ARE LOADED LOOSE INTO THE SHIP’S HOLDS. BUT GLOBALLY, MOST CARGO IS MOVED IN CONTAINERS. GREAT LAKES FREIGHTERS — AND THE PORTS THEY VISIT — AREN’T REALLY SET UP TO HANDLE LARGE SHIPMENTS AND CONTAINERS. BUT THAT MAY BE CHANGING.
IN 2014, THE PORT OF CLEVELAND SAW AN OPPORTUNITY, AND DEVELOPED THE FIRST CONTAINER SERVICE ON THE GREAT LAKES TO HANDLE IMPORT AND EXPORT CARGO. IN PARTNERSHIP WITH DUTCH COMPANY SPLIETHOFF, THEY CREATED THE “CLEVELAND EUROPE EXPRESS”
WITH A REGULARLY SCHEDULED ROUTE BETWEEN CLEVELAND AND ANTWERP. THE “PEYTON LYNN C,” A SMALL CONTAINER SHIP, TRAVELS OUT OF THE ST. LAWRENCE SEAWAY AND ACROSS THE ATLANTIC. THE TRIP TAKES APPROXIMATELY 14 DAYS, WITH A FEW
DAYS IN EACH PORT TO UNLOAD. AND THE OPPORTUNITY TO MOVE OTHER TYPES OF CARGO ON THE GREAT LAKES IN CONTAINERS IS PROVIDING NEW COST-EFFECTIVE TRANSPORTATION SOLUTIONS FOR SOME SHIPPERS. WILL FRIEDMAN: “It actually does help with cost for a ship
To come all the way into Cleveland, because the longer you keep cargo on the water, the more economical it is. The majority of the cost to move, let’s say a flat screen TV from China to Chicago or Columbus, Ohio, is
The inland transportation – the “over-the-land” transportation. Once it’s on a ship, even if it’s a smaller ship — it doesn’t have to be a mega ship — it doesn’t cost that much because you have those, you know, economies of
Scale and you’re just pushing that ship through the water. You’re not burning as much fuel. It’s also more sustainable. It’s also a greener form of transportation.” AND ACCORDING TO FRIEDMAN, SHIPPING THROUGH CLEVELAND AVOIDS THE DELAYS THAT CAN HAPPEN AT
CONGESTED OCEAN PORTS. WILL FRIEDMAN: “Unlike the big ports, where your container may be on a ship and it sits at anchor, you know, waiting to get to a berth for 30 days or 15 days. Our service is more reliable.” IN CLEVELAND,
THE CARGO IN CONTAINERS HAS BEEN MOSTLY INDUSTRIAL, NON- CONSUMER GOODS AND EXPORTS FROM NORTHERN OHIO AND BORDERING STATES. BUT ON MORE THAN ONE OCCASION, THEY HAVE BEEN THE ANSWER FOR A BUSINESS OUTSIDE THEIR REGION. WILL FRIEDMAN:
“We just had some rubber — synthetic rubber — moving up from Houston, getting trucked all the way up here to get loaded on to the “Peyton” and go to Europe. So those are the kinds of, you know, somewhat counterintuitive
Moves we’re seeing here with all these supply chain problems. They could not get a ship or find space on a ship out of Port Houston. So they moved that rubber all the way up here.” AND CLEVELAND ISN’T THE ONLY
GREAT LAKES PORT THAT’S LOOKING TO EXPAND ITS CONTAINER SHIPPING. THE PORT OF DULUTH SUPERIOR IS THE LARGEST PORT ON THE GREAT LAKES BY TONNAGE, INCLUDING THE TWIN PORTS OF DULUTH, MINNESOTA AND SUPERIOR, WISCONSIN. AND
IT’S MAKING WAVES IN CONTAINER SHIPPING. DEB DELUCA IS THE EXECUTIVE DIRECTOR OF THE DULUTH SEAWAY PORT AUTHORITY. DEB DELUCA, EXECUTIVE DIR, DULUTH SEAWAY PORT AUTHORITY: “From here, you can reach major markets such as the Twin Cities, Fargo, Des
Moines, also Milwaukee and even down to Chicago. So it’s from a, from a logistics standpoint, that’s very attractive.” LAST FALL, THE PORT OF DULUTH WAS GRANTED APPROVAL BY U.S. CUSTOMS AND BORDER PROTECTION TO HANDLE SHIPPING CONTAINERS BY
WATER. AND JUST RECENTLY, IT EXPORTED ITS FIRST SHIPMENT, 200 CONTAINERS OF KIDNEY BEANS FROM A COMPANY IN THE REGION. DEB DELUCA: “They were having difficulties arriving at a supply chain solution. With all the snarls and back-ups and supply chains
Over the past couple of years, they were not able to get their goods to market. So they — working with the freight forwarder, a trucking company — we were looking for an alternative solution and that ended up being sending those
Containers by ship through our terminal.” GREAT LAKES PORTS ARE ALSO LOOKING INTO NEW OPTIONS, LIKE A “FEEDER” SERVICE WHERE CONTAINERS ARE OFFLOADED IN BIGGER PORTS AND TRANSPORTED ALONG THE SAINT LAWRENCE SEAWAY IN SMALLER VESSELS, SIMILAR
TO WHAT IS DONE IN EUROPE. ALONG WITH ALL THE OPPORTUNITIES. THERE ARE MANY CHALLENGES TO CONTAINER SHIPPING ON THE GREAT LAKES, INCLUDING THE LOCKS OF THE SAINT LAWRENCE SEAWAY, WHICH RESTRICT THE SIZE OF THE SHIP. WILL FRIEDMAN: “If
You’re coming into the Great Lakes from outside the system, you’re limited by the dimensions of the locks. There are 15 locks that get you from sea level up to where we are, which is roughly 650 feet above sea level. And
Those lock dimensions are roughly 750 feet long and about 75 feet wide. And the controlling depth of the water and all the channels on the Great Lakes is about 27 feet, 27 or 28 feet. So ships can’t exceed those dimensions.”
ANOTHER FACTOR THAT HAS BEEN CHALLENGING FOR CONTAINER SHIPPING IS THE SHORTENED SEASON. BOTH THE SAINT LAWRENCE SEAWAY AND THE SOO LOCKS CLOSE DURING THE WINTER. WILL FRIEDMAN: “Many who use the system or ports on the system are, like
Me, advocate for, ‘Let’s keep the system open longer.’ We think that’s feasible from a technology point of view. We all know — unfortunately, with climate change — that we’re not getting as much ice cover anymore. Winters aren’t as severe.
Let’s allow more year-round shipping, or closer to year- round shipping.” BOTH THE PORTS OF CLEVELAND AND DULUTH EXPECT TO MOVE MORE SHIPPING CONTAINERS IN THE COMING YEAR. MIKE NEVER UNDERESTIMATE THE POWER OF INGENUITY. INGENUITY. WELL NEXT WEEK,
AHEAD OF -THIS- YEAR’S DIXIE NATIONAL SALE OF JUNIOR CHAMPIONS, ONE MORE LOOK AT -LAST- YEAR’S EVENT… VO ZAC IT’S ONE OF THE MOST POPULAR STORIES WE DO EVERY YEAR, THE GRAND FINALE FOR YOUNG PEOPLE IN 4H AND FFA,
COMPETING TO BECOME -CHAMPIONS- IN THIS BELOVED EVENT. VO MIKE COME WITH US AGAIN TO JACKSON, WHERE YOU’LL MEET TWO COMPETITORS WHO EPITOMIZE THE DISCIPLINE AND DRIVE OF MISSISSIPPI’S HARD- WORKING YOUTH. THE 2023 -DIXIE NATIONAL SALE OF
JUNIOR CHAMPIONS- — THAT’S NEXT TIME ON FARMWEEK. ZAC REMEMBER IF YOU MISSED A STORY, LOOK FOR PAST EPISODES OF FARMWEEK ON OUR WEBSITE AT FARMWEEK DOT TV. MIKE AND DON’T FORGET TO FOLLOW US ON FACEBOOK AND
YOUTUBE. SEE YOU NEXT WEEK. THANKS FOR WATCHING.