U.S. dockworkers went on strike this week, leaving ports from Texas to Maine unable to ship containers of agricultural products.
“Our nation relies on international trade for everything from electronics to machinery,” American Farm Bureau Federation (AFBF) President Zippy Duvall said.
The strike is delaying the flow of containerized agricultural product shipments to other countries at an extremely critical point for Texas and American farmers. Agricultural groups sent a letter to the Biden administration about their concern of the strike’s impact on agriculture, because the impacted ports are critical gateways for U.S. agricultural products bound for international destinations.
In fact, about 40% of U.S. containerized agricultural products move through East and Gulf Coast ports.
The waterborne exports, AFBF noted, make up over 75% of the total U.S. ag export volume.
The disruption to overall agricultural trade is expected to be about $1.4 billion each week that the strike is in place, according to AFBF.
Duvall, however, noted America’s food supply is strong and that store shelves will continue to be stocked with domestically grown products.
“While there is a risk of shortages of some items, the United States is fortunate that it can meet its nutritional needs without importing food. America’s farmers grow a diverse range of food items that ensure the nation’s food independence,” he said. “That’s not to say rural America won’t feel the effects of a dockworker strike. Farmers and ranchers rely on international partners to sell billions of dollars of home-grown food to markets around the world. A disruption at the ports could leave perishable food rotting at the docks, which threatens the livelihood of farmers.”
The dockworker strike started the same day the farm bill extension expired.
Not having an outlet to move goods—like soybeans, dairy products, red meat and raw cotton—will create supply surpluses domestically and reduce prices for farmers, according to AFBF economists.
“We urge both sides of the dockworker disagreement to work on a solution that will return vital ports to normal operations,” Duvall said. “We also urge Congress to recognize the importance of America’s food independence and pass a new, five-year farm bill to ensure a stable food supply for America’s families.”
Learn more about the strike and its impact on agriculture in this Market Intel report.
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