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Posts Tagged ‘Farm’

Insufficient Freight: Ground Transportation & The Grain Industry

Monday, August 17th, 2015
FIGURE 1: Transportation Costs Eat Into Farm Revenue

AMERICAN FARM BUREAU FEDERATION
Unfortunately, the agriculture industry is uniquely dependent on efficient rail freight systems in the hotspots most affected by congestion. Some North Dakota grain elevators, for instance, entirely rely on rail shipment to keep business flowing. Rail congestion in 2014 stopped service to them for weeks and months at a time – a total collapse in the system that supports their livelihood. Ultimately, family farmers bore the costs of scarce rail service. The USDA estimates grain and oilseed producers throughout the Upper Midwest may have received $570 million less for the crops they marketed in 2014 than they could have earned in a normal freight environment.

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