Rail shipping delays cost corn farmers $72 million

A new report from the University of Minnesota says rail shipping delays cost Minnesota corn farmers $72 million in lower prices from March to May. The report also said 330 million bushels of corn still being stored on farms throughout the state was worth $122 million less because of rail backups.

The losses average about 30 cents per bushel of corn, which can be the difference between making or losing money in a given year for a corn farmer.

On Thursday, the Minnesota Corn Growers Association (MCGA) co-sponsored an Agriculture Freight Forum organized by the Minnesota Department of Agriculture that brought together farmers, agency leaders and the rail industry to discuss the issue. About 200 people were in attendance.

“Farmers rely heavily on rail transportation,” said Eden Valley corn farmer and former MCGA president Tom Haag, who participated in a panel at Thursday’s forum. “It was good to come together and discuss this important issue. Now it’s time to start working to get these delays resolved in time for harvest. The losses endured by farmers due to rail delays ripple throughout the entire rural economy.”

A spike in oil shipments from North Dakota and bad weather leading to congestion at rail hubs are blamed for the delays.