Grain News


North Dakota State University Study Finds State Farmers Have Lost $67 Million to Rail Shipment Delays

Date Posted: May 22, 2014

This article is reprinted from the USDA's May 22 Grain Transportation Report.

A North Dakota State University study, based upon basis values, concluded that North Dakota farmers have lost nearly $67 million this year because of rail shipment delays, and could lose an additional $95 million if the delays persist.

The estimate is limited to spring wheat, corn, and soybeans, and does not include potential losses to growers of durum wheat, barley, sunflower, canola, field pea, lentils, dry edible beans, flax, oats, or food grade soybeans.

In addition, losses by agricultural processing businesses, such as those producing refined sugar, ethanol, dried distillers grains, and high fructose corn syrup, among other products, are not included in the estimate.

Wheat, corn, and soybeans are three major crops grown in North Dakota and rely heavily on rail transportation to access markets.

For the marketing years 2009-12, railroads hauled 80 percent of North Dakota grain.

The study states that a high demand for grain shipments, an extremely cold winter, and increased oil transportation have resulted in delayed grain deliveries and increased costs of rail transportation.

For more information, call Surajudeen (Deen) Olowolayemo, USDA, at 202-694-3050.

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