NASHVILLE, Tenn. (RFD-TV) — U.S. food manufacturers will rely heavily on Canadian oats again this year. Still, rising rail tariffs and tighter supplies are reshaping how those oats move into key milling regions. Since domestic output cannot meet demand for cereals, oatmeal, and granola, buyers remain dependent on consistent cross-border shipments — and transportation costs are increasingly driving the equation.
The United States imports nearly all its oats from Canada, with most shipped by rail to Duluth, Chicago, and major Midwest mills. A 2023 drought cut Canadian production, reducing rail volumes 26 percent and increasing reliance on truck and Great Lakes vessel shipments. For 2025/26, all major railroads raised oat tariff rates: BNSF by $100 per car and Canadian carriers by $175–$260 per car, depending on lane and volume.
Processors in Minneapolis, Cedar Rapids, and St. Ansgar now face higher freight costs, which are tightening margins and may influence sourcing decisions. Truck shipments remain steady but cannot replace rail capacity. Meanwhile, competition between rail carriers — especially over access to Cedar Rapids — has widened rate spreads.
Looking ahead, oat shipments will peak after harvest, but elevated freight rates and tighter supplies may suppress volumes into early 2026.
Farm-Level Takeaway: Higher rail tariffs and tighter Canadian supplies will keep oat transportation costs firm into 2026.
Tony Saint James, RFD-TV Markets Specialist
Shaun Haney, host of RealAg Radio, joined us to break down the latest data on Canadian farmland values and share insights on how it impacts producers.
October 07, 2025 01:14 PM
·
Lewis Williamson, from HTS Commodities, joined us to share insights on the farm economy from producers in the field.
October 07, 2025 12:47 PM
·
Despite tariffs having a less significant impact on exports, corn producers struggle with tariff-related increases on inputs, which complicates their bottom line.
October 06, 2025 01:13 PM
·
October 06, 2025 12:40 PM
Jack Daniel’s will end its Cow Feeder Program, which served around 100 livestock operations near the distillery, and redirect spent grains to its anaerobic digester.
October 06, 2025 12:33 PM
·
October 06, 2025 12:11 PM
Prepare for acute UAN risk and a brief urea shock; maintain steady ammonia and phosphate plans, and monitor potash basis on the coasts.
October 06, 2025 11:56 AM
·
University of Illinois Ag Economist Gary Schnitker says early projections indicate soybeans will be more profitable than corn in 2026.
October 03, 2025 11:53 AM
·
Trump’s upcoming talks raise hopes for U.S. soybeans, but China’s record purchases from Brazil and Argentina show America’s market share remains under heavy pressure.
October 02, 2025 10:27 AM
·
