Looming Railroad Strike Could Be Bad News For Iowa’s Harvest

Groups are starting to get nervous as threats of a railroad strike creep closer.

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A potential walkout on September 17^th, would not only be costly to the economy but would also threaten the agriculture sector. According to Bloomberg, a strike would cost the economy $2 billion a day as well as threaten shipments of grain, fertilizer, and energy.

Iowa Senator Chuck Grassley said that railroads started taking some action with the threat of a strike such as transferring dangerous products that they could be carrying.

Now it's evidently reached the point where, by Friday, Congress must act and under an old-time law, Congress must act. And it's going to be in the form of a resolution that says well ‘if we do nothing, there's going to be a strike’.

A railroad shutdown in mid-September would put farmers in a hard situation. According to an article in Siouxland Proud, a strike at this time would overwhelm grain storage facilities which would leave farmers with few options when it comes to storing their grain which would boost the chance of spoilage.

There is also the chance that grain processors would shut down which would raise the price of common items such as bread, and leave farmers with huge crop quantities and lower commodity prices.

Congress could pass a resolution that would just go along with the latest negotiated settlement and, and, and that would end it or we could legislate some changes in the agreement to this point. But I think that Congress will be inclined to just endorse what PEB (Presidential Emergency Board) has made recommendations.

When it comes to US agricultural rail shipping, corn, wheat, and soybeans dominate the freight charts.