East Central South Dakota | thanks for your replies to make us think;
As far as more efficient truck transportation, I had a A-train pull in the pit next to me yesterday. He can gross 180,000 pounds and haul 1800 bushels legal. Trouble is you can't haul to any of the surrounding states where the market is with those trucks.
I don't think rail providers should be put in the position to determine if corn is a viable crop in the upper Midwest. Our large and efficient farms combined with new seed technology along with way cheaper land costs have made us competitive for the last 20 years, helping to offset the geographic distance from ports and end users. The corn belt has been migrating north and west for at least the last 20 years. Major grain companies recognized this huge production potential and over 200 million dollars were invested in shuttle loaders in just South Dakota in just the last 3-4 years. Major grain companies that see trends and have smarter people than a dirt farmer like me believed in the grain production potential and invested. WHAT CHANGED ! !
The FRACKING TECHNOLOGY that made the Balken OIL find feasible to drill and pump out of the ground. Trains hauling oil now not grain. It really is that simple.
Bunge's new exporter and other hard assets in the PNW are not to capacity not because of lack of demand----the demand is there----just can't get the grain out there. The best way to hit the Pacific Rim is through the PNW. All the crap we buy from China gets off loaded on the West Coast for a reason----it doesn't go to the gulf and up the river. Wouldn't the reverse for grain back to them be the same.
The railroad is choosing who wins and loses wholly on there own. Barge grain handling is the game in town right now, but if oil could be hauled by barge it would replace grain in a heart beat. What about the rebuilding and maintenance of the lock system on the river ? Those costs are socialized out to the tax payers up here that don't have access, why should rail be any different. Rivers freeze up and rivers flood/dry out. Rail is efficient it is just being asked to haul a lot of "stuff" that could just be put in a more efficient pipe line.
When Obama kills all the coal fired electrical plants and converts them to natural gas might free some power and track space up for grain. Future changes that fast----I think we need strong rail and barge for grain export to keep all our bases covered.
Todays problem up here is strictly rail transportation and car costs---NOTHING MORE THAN THAT. As recent as just 4 months ago the majors never dreamt it would get this bad with grain transportation. Sorry for the rambling---should have been a separate post maybe.
Edited by white shadow 9/19/2014 14:37
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RR's are basically regulated monopolies
