Jones Act Waiver Sought

LANSING - Sep 23/05 - MFB -- A coalition of 21 agriculture groups, including the American Farm Bureau Federation, this week sent a letter to President Bush requesting a temporary waiver of the "Jones Act," a section of the Merchant Marine Act of 1920.

The coalition letter urges a Jones Act waiver for agricultural products, which would provide additional transportation capacity for moving U.S. grains and oilseeds to ports in the Southeastern regions of the nation.

Under the Jones Act, water transportation of goods between U.S. ports must be done by U.S.-flagged, U.S.-built, U.S.-crewed and U.S.-owned vessels. A limited number of such vessels are available for use by the agriculture industry, which makes their cost far higher than using foreign flag vessels.

The letter notes that without a waiver of the Jones Act, American farmers could be harmed, as traditional commodity buyers look to overseas suppliers in an effort to avoid the current constraints of U.S. domestic transportation.

The timing of the request is critical. "This year's harvest will come online just as the export capacity hurt by Hurricane Katrina is beginning to recover," the letter said.

A similar request for a waiver of the Jones Act from the petroleum and gas industry was recently granted.

Copyright (c) 2005 Michigan Farm Bureau