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
Cheaper freight is helping exports move, especially corn, but weaker soybean demand looms large.
September 18, 2025 04:37 PM
·
Sen. Roger Marshall, a founding member and chairman of the Make America Healthy Again caucus, joined us with his thoughts on the commission’s latest report and the key ag-related issues.
September 17, 2025 04:36 PM
·
Grain shippers face lower freight values thanks to weak soybean exports and strong rail service, but barge traffic and forward Gulf loadings suggest continued uncertainty as harvest ramps up.
September 17, 2025 04:01 PM
·
The Fertilizer Research Act, reintroduced by Sens. Grassley, Ernst, and Baldwin, would direct the USDA to study and publish public reports on competition and pricing trends in the fertilizer market.
September 16, 2025 05:08 PM
·
Farmers await concrete trade commitments from China. Until then, export prospects for soybeans, corn, and sorghum remain uncertain against strong South American competition.
September 16, 2025 11:04 AM
·
U.S. trade talks with China resume, but meat industry leaders say dealing with shifting demand and market uncertainty is nothing new in this side of the ag sector.
September 15, 2025 12:57 PM
·
Tariffs are pushing up input costs, with fertilizer prices rising $100 per ton and machinery costs climbing due to steel and parts duties.
September 15, 2025 12:21 PM
·
American Soybean Association President Caleb Ragland joins us to share his reaction to September’s WASDE and discuss the trade uncertainty between China and his industry.
September 12, 2025 02:13 PM
·
U.S. producers are holding off on equipment investments amid financial pressure, market uncertainty, a rising demand for diesel, and growing desperation for trade wins.
September 12, 2025 11:18 AM
·
