NEWS
UNITED STATES DEPARTMENT OF AGRICULTURE
Office of Communications News Room 460-A
Washington, DC 20250-1300
Internet: News@usda.gov   Phone: 202-720-9035
World Wide Web Home Page: http://www.usda.gov

Release No. 0389.05 

                                                  Contact: 
                               Terri Teuber (202) 720-4623 
                              Kent Politsch (202) 720-7163 
   

USDA TAKES ACTION TO EASE GRAIN TRANSPORTATION
 
      WASHINGTON, Sept. 20, 2005 - Agriculture Secretary 
Mike Johanns today said USDA is taking additional steps to 
further reduce stress on the grain transportation system 
caused by Hurricane Katrina. The actions include assisting 
with the movement of barges of damaged corn from New 
Orleans; providing incentives for alternative grain 
storage; encouraging alternative shipping patterns to 
relieve pressure; and allowing producers to store USDA-
owned corn on the farm with the option to purchase. 
      
      "These actions, in conjunction with the tremendous 
work being performed by the U.S. Army Corp of Engineers, 
will help the transportation system return to normal as 
quickly as possible," said Johanns. "The drought is 
contributing to the stress along the Mississippi River by 
decreasing the flow, so we are encouraging alternative 
routes and means of transportation in addition to the 
steps we are taking to relieve the pressure on farmers and 
related businesses." 
      
      USDA is providing a temporary incentive to assist 
immediate movement of some 140 barges of damaged corn 
(over 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. In addition, to help producers deliver and 
sell crops in the absence of barge transportation caused 
by the hurricane, USDA also will pay incentives for 
alternative storage of up to 50 million bushels of grain. 
These actions will further ease pressure on producers to 
market commodities under adverse conditions. 

      To reduce stress on the Central Gulf transportation 
and handling system, USDA will provide a transportation 
differential to cover the costs of moving grain to other 
river transportation modes and handling and locations. 
      
      To further alleviate grain movement into the 
Mississippi River, USDA will allow producers forfeiting 
commodities to USDA the opportunity to buy back the grain 
when their farm-stored loan matures at the end of Sept. 
and Oct. This opportunity to purchase is offered on a 
state-by-state basis and will be available for 60 days at 
the posted county price. 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. 
      
      For more information about programs affected by 
today's announcements, producers should contact their 
local FSA office or visit FSA's Web site at 
http://www.fsa.usda.gov. 
 
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