Port of Oakland, USDA jump-starting ag exports again
The Port of Oakland is teaming up with the federal government to provide financial aid to agricultural exporters, according to the company's release. The intent is to ease the pain of a year-long supply chain disruption that’s impeding farm trade. The Port added that restoration of vessel service is essential to resolving Oakland’s supply chain challenges. Ocean carriers have been skipping Oakland due to vessel logjams in Southern California.
The Port said the U.S. Department of Agriculture (USDA) would make direct payments to farm producers shipping overseas. It said the program is available to exporters using container ports in Oakland, Seattle or Tacoma. Here’s how it would work:
The USDA would pay ag shippers $200 for every container of farm goods they export.
Exporters using refrigerated containers for perishable commodities would receive $400 per container.
Exporters would receive an extra $125 for every empty container they pick up at a designated Oakland storage depot.
The Port said USDA payments are intended to offset soaring shipping costs resulting from global supply chain breakdowns and the expense of additional container moves. Ag exports from Oakland and other U.S. ports have declined since last year due to the chaos.
USDA payments mark Oakland’s second collaboration with the federal government in the past year. In 2021, the Port and USDA established an Oakland depot to distribute empty containers to ag exporters. Oakland is an essential export gateway for California farm goods, as well as Midwest meat products.
The USDA said its export payment program would continue throughout 2022. Exporters would need to submit payment applications by next January to receive reimbursements, the agency added. It said that payments would be made through the Farm Service Agency.
According to the USDA, the following commodities would be eligible for payments: agricultural commodities (other than tobacco) which are grown or produced in the US for food, feed, or fiber, and products made from those commodities, including certain forestry products.
The Port of Oakland oversees the Oakland Seaport, Oakland International Airport, and nearly 20 miles of waterfront including Jack London Square. The Port's 5-year strategic plan - Growth with Care - pairs business expansion with community benefits, envisioning more jobs and economic stimulus as the Port grows. Together with its business partners, the Port supports more than 84,000 jobs.
