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America’s Snarled Railroads Are the Latest Hit to Farmers

Submitted by jhartgen@abi.org on

Congestion on America’s railroads is disrupting operations for farmers and agriculture companies, industry officials said, potentially pushing up food prices, the Wall Street Journal reported. Delayed trains and scarce railcars are impeding crop shipments this spring, causing grain storage facilities to fill up, backing up fertilizer shipments and temporarily shutting down production at ethanol producing plants, company executives said. Railroad operators said they are working to fix the problems but struggling to find enough workers. The railroad slowdown has grain companies looking for other ways to move farm commodities across the country, leading to higher transportation costs that company officials said will ultimately increase food prices for consumers. Food globally is already becoming more expensive, with food makers paying more for fuel, ingredients and labor. “We are seeing a disruption across the industry from top to bottom,” said Todd Becker, chief executive of Green Plains Inc., a major producer of ethanol and animal feed ingredients. “Transportation is a big driver of food prices.”