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Economic impact of 2020 Illinois River closures could be minimal with no delays

A GROWMARK representative says with ample time to prepare, economic impacts of 2020 Illinois River closures should be minimal if there are no delays.

Joe Kilgus says unlike spring flooding that closed the Illinois River for nearly two months, the ag industry knows about the 2020 lock and dam repairs ahead of time.

“If one of these locks would have some kind of catastrophic breakdown that was not planned or prepared for, that economic impact would be far greater than something planned like this.”

Kilgus says GROWMARK is looking at alternative storage and transportation options for grain and fertilizer.

“Our typical product movement during that time period is about 210,000 tons of P and K. We have storage for about half of that, about 100,000 ton.”

He says demand for rail and truck transportation will go up during the repairs and if the closures last longer than planned, farmers will see additional charges for freight.

“If we had to supply the other 110,000 ton, I am guessing that the cost to the farmer would be somewhere between $0 and $1.80 per acre. That is the high side and almost worst-case scenario.”

Kilgus says farmers and ag businesses should spend the next year preparing an alternative shipping and storage plan to minimize the economic impact.

Kilgus spoke at an Illinois River Closure meeting in West Peoria hosted by Illinois Farm Bureau.