Katrina Agriculture Costs in LA to Exceed $1B, as Port Reopens

September 14, 2005 — 

The Associated Press is reporting that the Louisiana State University AgCenter has estimated agricultural losses in Louisiana resulting from Hurricane Katrina will exceed $1 billion. This estimate, however, "covers only lost revenue and increased production costs. They do not include damage to fences, equipment and buildings, trashed pasture land and other infrastructure losses", said AgCenter economist Kirk Guidry. Agriculture entities most affected in the state include the dairy industry (which is having to dump milk due to lack of refrigeration), as well as the sugar cane and the timber industries.

On a positive note, the port of New Orleans has reopened. According to the USDA, "there are 10 export elevators in the surrounding New Orleans area and 3 "floating rigs" that do not have storage capacity but can load 30,000 to 60,000 bushels of grain per hour from river barges directly on to ocean-going vessels or ocean-going barges. In total, these elevators have a storage capacity of approximately 53 million bushels of grain with a capability of loading 970,000 bushels per hour when fully operational." According to the AP report, "the port of New Orleans is the gateway to a river system serving 33 states along the Mississippi River or its tributaries. The port also connects to six railroads." Almost 60 percent of U.S. grain goes through the Port of New Orleans, according to the National Feed and Grain Association.

Sources:
http://www.shreveporttimes.com/apps/pbcs.dll/article?AID=/20050913/NEWS05/509130353/1064
http://www.agctr.lsu.edu/en/communications/news/headline_news/Shipping+Crops+Problem+For+Farmers+High+Fuel+Prices+Also+A+Blow.htm
http://www.usda.gov/wps/portal/usdahome?contentidonly=true&contentid=2005/09/0354.xml