Railroads are doing a much better job of moving grain in portions of Minnesota, the Dakotas and Nebraska, according to the latest survey of grain handlers conducted by the Soy Transportation Coalition and the University of Minnesota.
The Iowa-based coalition criticized BNSF and Canadian Pacific Railway last year for backlogs, delays and high shipping prices that were costing farmers and grain handlers millions of dollars in lost sales and late delivery penalties.
But coalition executive director Mike Steenhoek said that sizable investments by railroads over the past year are steadily yielding positive results for agricultural customers.
"Last year, there was widespread frustration and exasperation throughout agriculture," he said. "This year, rail service – especially in the western parts of the corn and soybean belt – is much more reliable and responsive."
Steenhoek commended the railroads and noted that each successive two-week survey this winter has shown improvements in service. They included faster turnaround times for trains moving between the Midwest and Pacific Northwest ports, he said, fewer past due orders seeking train service, and fewer performance delays.
Also contributing to better rail service, Steenhoek said, were last fall's elongated harvest season, farmers storing grain longer because of low prices, favorable weather, and more modest harvest volumes than expected.
The coalition includes soybean association board members from two national groups and 12 states, including Minnesota. The coalition and the University of Minnesota are surveying grain handlers every two weeks as part of a research project that monitors rail service and its impact on agricultural profits in the four states.
