Agricultural News
Investment in U.S. Rail System Necessary to Meet Agriculture's Needs
Wed, 10 Apr 2013 11:59:11 CDT
As millions of bushels of U.S. soybeans crisscross America's roads, rails and waterways on their way to export markets, a soy-checkoff-funded study says more would ship more cheaply and efficiently by rail and fewer by trucks if the U.S. railway system were up to the task.
"The U.S. soy industry needs a transportation system that runs smoothly in order to move our soybeans to markets, and railways are a major part of that," says Jared Hagert, a soybean farmer from Emerado, N.D., and coordinator of the United Soybean Board (USB) International Opportunities target area. "A big key to growing markets, both domestic and international, is being able to deliver our soybeans in an efficient manner."
The study, titled "Maintaining a Track Record of Success," examines the U.S. railway system and its ability to handle future growth in agricultural production and exports. This report suggests that if rail infrastructure investments are adequate to support growth, there will be a gradual shift from truck transportation to rail transportation each year, an action that could save fuel and money along the transportation chain. According to the study, rail uses about one-third of the fuel per ton-mile compared with trucks and can reduce road congestion and the need for highway repairs.
Funded by the soy checkoff and coordinated by the Soy Transportation Coalition, this study also examined the private investment anticipated to be made by railroad companies and the shippers and receivers that use it. In addition, the report looks at the soybean sector's challenges in becoming more efficient with its rail movements.
U.S. soybean exports are increasingly dependent on rail, as well as other pieces of the infrastructure for transport, between September and February. Fluid rail capacity to handle the surge in volume during those months is critical to the soy industry continuing to maximize the farm value of soybeans.
Increasing private and public investment in soy transportation modes remains a priority of the soy checkoff.
The 69 farmer-directors of USB oversee the investments of the soy checkoff to maximize profit opportunities for all U.S. soybean farmers. These volunteers invest and leverage checkoff funds to increase the value of U.S. soy meal and oil, to ensure U.S. soybean farmers and their customers have the freedom and infrastructure to operate, and to meet the needs of U.S. soy's customers. As stipulated in the federal Soybean Promotion, Research and Consumer Information Act, the USDA Agricultural Marketing Service has oversight responsibilities for USB and the soy checkoff.
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