West Newsmagazine 6-13-18

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16 I NEWS I
1.
June 13, 2018
WEST NEWSMAGAZINE
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Infrastructure investment key to St. Louis’ success
By JIM ERICKSON
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(Address)
(Phone No.)
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There’s no doubt the St. Louis area has
played a big role in moving soybeans produced
in Missouri and other nearby states
into world markets. But maintaining that
position is far from a sure thing.
Speakers at the recent Freightweek STL
conference at America’s Center in downtown
St. Louis emphasized that point. And
while it may 2. be next to impossible to overcome
some of the factors involved, issues
such as investing in infrastructure improvements
and maintaining Happy leadership Father’s in plant Day
research are within the control of national,
regional and local decision-makers.
Numbers tell much of the story, according
to Brian Burke, 2. who manages the St.
Louis office of John Stewart & Associates,
a grain trading/risk management firm.
Soybean exports account Give Thanks for more than
$24 billion in U.S. economic activity, with
60 percent of the volume going through
St. Louis on the way to New Orleans
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around the world, he noted.
World soybean trade is expected to grow
30 percent or more by 2027 as consumption
of meat in developing countries continues
to increase, Burke continued. Soybean
meal is a major ingredient in feed for raising
livestock and in fish farming.
Brazil and Argentina already are capturing
a bigger share of the global soybean
market as they continue to expand production
and invest in infrastructure projects
needed to move their commodities to
world markets, he added.
“The amount of U.S. land available for
agriculture is relatively constant,” Burke
said. “That’s not the case in many other
nations. So, if we are going to remain competitive,
we can’t do it by putting more
land into production. We need infrastructure
improvements to squeeze costs out of
the system and be competitive that way.
“We may be able to get more production
®
from an acre of land than other nations, but
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fragile logistics can quickly disrupt marketplace
demand for our products.”
Dr. Eric Jessup, an agricultural economist
and research professor at Washington State
University, noted that prioritizing infrastructure
improvements involves examining literally
hundreds of projects. However, there’s no
®
doubt the nation has not adequately invested
in freight transportation improvements.
The seasonality of agriculture’s transportation
needs raises questions about investing
in facilities that may be used efficiently
only for a comparatively brief time each
year, Jessup observed.
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Dave Jump, CEO of American Milling
LP of Cahokia, Illinois, agreed with Jessup’s
view of the difficulties of investment
decisions involving assets used seasonally.
The St. Louis area’s barge-loading capacity
now is “in great shape,” Jump said. The
problem is the infrastructure leading to
those facilities has constraints.
St. Louis is blessed to be on the nation’s
major inland waterway at a point where
locks and dams are unnecessary all the way
to the Gulf of Mexico, Jump said. Another
asset is the emphasis on plant research
found here and the gains in agricultural production
stemming from those efforts. However,
Jump questioned whether there is the
political will for improving the locks and
dams north of St. Louis, adding it may take
some kind of catastrophic event affecting
that infrastructure to change the situation.
Scott Sigman from the Illinois Soybean
Association said the political picture Jump
described stems at least in part from the fact
that the nation’s soybeans, as well as other
commodities, are produced by fewer farmers
as farm numbers decline but individual
farm operations become larger. With a
smaller base of agricultural voters, there’s
less pressure on politicians to maintain and
improve the roads and bridges in the farmto-market
infrastructure, he concluded.
10-2014 Holiday 8.5c
Facets of Fatherhood
Sunday, June 17th
6:30 pm
Celebrate Dad with great music, wings from
WingNut food truck, and Kona Ice snow cones
at the Amphitheater in Schroeder Park
359 Old Meramec Station Rd. Manchester, MO 63021
Manchester Arts events are FREE to enter & attend.
The band is supported by West News Magazine, and our
generous community partners.
VISIT US ONLINE
MANCHESTERMO.GOV/ARTS
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