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Local basis, got a good laugh
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white shadow
Posted 3/13/2016 14:47 (#5173583 - in reply to #5171486)
Subject: RE: Local basis, got a good laugh



East Central South Dakota		we are held hostage by the monopoly shipper "the BN". The BN is the only game in town for South Dakota for all practical purposes. They won't let short lines on "their tracks" and they want hauls to the gulf and the PNW. Also the end user has to be able to dump 110 shuttle trains as the railroad doesn't like exploding trains and the associated dwell times of the practice. We used to hear of people trucking Wheat into the cities, but really not that much wheat left in Eastern South Dakota.

Bottom line is rail freight has a very hard time ever competing against river bids/barge traffic. If you live close enough to a barge/river market drop to your knees and be thankful. Only two major producing states that don't have river access are South and North Dakota and our basis reflects it. We will never win the war of our geographic positioning. Even with processing your end product is out of position with the market. Marketing grain through livestock trailers is our best bet and that brings a whole new set of zoning and neighbor problems.

Edited by white shadow 3/13/2016 14:49
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