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
Stronger rail movement and lower fuel prices are easing logistics, even as export pace and river conditions remain uneven.
December 22, 2025 02:12 PM
·
Pork producers warn that proposed definitions of “ultra-processed” food in guidelines from the “Make America Healthy Again” plan could negatively impact industry-standard bacon, sausage, and feed practices.
December 22, 2025 01:38 PM
·
Tight feeder supplies and lower placements indicate continued support for the cattle market, with regional impacts heightened in Texas by reduced feeder imports.
December 22, 2025 10:10 AM
·
Weather-driven transportation disruptions can tighten logistics, affect basis levels, and delay grain movement during winter months.
December 19, 2025 12:55 PM
·
December 18, 2025 10:20 AM
·
A new maritime biofuels coalition aims to position ocean shipping as a significant growth market for U.S. crops and waste-derived fuels.
December 17, 2025 07:00 AM
·
Transportation access, legal disputes, and fertilizer freight costs will directly influence input pricing and grain movement in 2026.
December 16, 2025 01:37 PM
·
Despite China’s sharp drop in grain purchases this year, new USDA export data this week shows that even some buying activity from the trade giant still moves the markets.
December 16, 2025 12:20 PM
·
Corn and wheat exports remain supportive, but weaker soybean demand — especially from China — continues to pressure oilseed markets.
December 16, 2025 12:08 PM
·
