by Amanda Smith, Associate Editor
For dairymen who purchase corn and soybeans, grain harvest speculations have been a boon to their bottom lines. But, the effects of a record haul could dampen if the crop is stuck in transportation limbo.
Across the Grain Belt, rail service backlogs coupled with grain bins that are swiftly reaching capacity leaves grain producers with limited storage options for the remainder of last year's and this year's expected record-breaking harvest.
These backlogs are a continuation of the delays that developed during an abnormally frigid winter. Due to the severe winter weather, trains were shortened from the traditional 130 cars to 90 cars or less to maintain proper operating air pressure. Rail yards choked with backed-up traffic, ice and limited personnel dedicated resources to intermodal and oil shipments, leaving grain out in the cold.
U.S. railroads came under heavy criticism at a September Senate committee hearing, following months of delays tied to the recent harsh winter and improving economy which has impacted grain and intermodal shippers. Earlier this year, the Canadian government, too, stepped in to demand additional priority to agricultural shipments.
During the hearing, Arthur Neal, deputy administrator of the Transportation and Marketing Program, noted that grain stocks this harvest season are expected to exceed permanent storage facilities by about 694 million bushels, or about 3.5 percent of expected harvest totals.
USDA's current corn production forecast for this year is a record 14.4 billion bushels, or 171.7 bushels per acre. Soybean totals are record book bound at a projected 3.9 billion bushels.
