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May 26, 2010

River subsidy sidelines Minnesota agriculture

Currently, the navigation infrastructure on the Mississippi costs the federal government an estimated $100 million a year to maintain—a subsidy that supports the export of Minnesota's agricultural products. Now, the navigation industry is pushing for more: nearly $270 million. In a new commentary, published yesterday in the Star Tribune, IATP's Mark Muller explains why increased investment in export channels like the locks and dams from Minneapolis to southern Illinois is bad for Minnesota agriculture.

“Now that the Farm Bill has encouraged all of this corn and soybean production, federal policymakers apparently feel some responsibility for facilitating the export of these crops,” he writes. “When agriculture production is narrowed down to just a couple of crops [...] economic opportunities that provide a greater return are lost. This hurts the Midwest farmers that have little choice to grow these crops even when prices are lousy, and hurts rural communities that need economic development.”

Read the entire commentary, “Don't give up on Minnesota's agriculture innovation,” here (pdf).

Andrew Ranallo

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