Research

In October 2022, drought caused Mississippi River levels to reach their lowest point in a decade. In October 2022, drought caused Mississippi River levels to reach their lowest point in a decade. Commercial traffic slowed as barges carrying much of the Midwest’s grain, fertilizer, and other commodities were subject to weight limits, bringing barge rates to a record high. 

This paper aims to estimate the impact of low Mississippi River levels on soybean basis. Using a spatial difference-in-differences approach, we compare locations that differ in their relative proximity to domestic crush and export demand before and at the 2022 harvest period affected by low water conditions.