Rail Upgrades Boost Grain Exports While Kansas Farmers Challenge Fees in Court

Farm legal expert Roger McEowen discusses a new rail antitrust case in Kansas and its potential implications for farmers as rail upgrades signal continued export-driven demand for logistics.

TOPEKA, KANSAS (RFD NEWS) — New rail investments and facility upgrades across the U.S. grain system underscore shifting export flows, fertilizer logistics, and regional handling capacity.

A report (PDF Version) from GTR highlights that BNSF Railway set a new corn volume record in 2025, surpassing its 2018 benchmark as Pacific Northwest exports surged. Corn export inspections from PNW terminals reached 24.2 million metric tons, up 128 percent from the prior five-year average. Slower soybean demand, tied to U.S.-China trade negotiations, redirected shipments toward the Texas Gulf, where inspections reached 1.2 million metric tons in October and November.

Infrastructure expansion continued across the network. BNSF opened new grain and fertilizer facilities in Wisconsin and Kansas and a renewable fuels site in California. Meanwhile, CHS Inc. completed upgrades at its Galveston fertilizer terminal, tripling railcar loading speeds and expanding cargo flexibility despite lower fertilizer import volumes in 2025.

In Iowa, Heartland Cooperative launched a new 5.5-million-bushel shuttle-loading elevator on Union Pacific Railroad lines, strengthening grain origination capacity in south-central regions where infrastructure has historically lagged.

Farm-Level Takeaway: Rail upgrades signal continued export-driven demand for logistics.
Tony St. James, RFD NEWS Markets Specialist

A recent lawsuit in Kansas is drawing attention to competition and pricing in agricultural transportation, raising antitrust questions tied to rail shipping fees.

The lawsuit centers on an agreement involving the Towner Rail Line, a newly rehabilitated rail corridor that runs from western Kansas into eastern Colorado. According to the case, 13 farmers and two agribusinesses allege that increased rail traffic fees are making it more difficult for local producers to earn a fair price for their crops.

Farm legal expert Roger McEowen joined us on Monday’s Market Day Report to discuss the case and its potential implications for farmers and agribusinesses.

In his interview with RFD NEWS, McEowen explained that the legal challenge focuses on competition concerns in the rail sector and highlighted key arguments raised by the plaintiffs. He also discussed a fee structure tied to switching rail lines, which the lawsuit claims could discourage shippers from using the Towner line.

Finally, McEowen outlined how the legal process may move forward and what the outcome could mean for agricultural transportation and competition in the region.

READ MORE: ‘The ‘Smoking Gun’ in the High Plains — Antitrust Law Meets Rural Rail

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“Producers want those options for identification and traceability purposes that they were promised back in 2013, and that’s what made it controversial.”
“We just want to make sure a Farm Bill doesn’t fall off the radar screen.”
“They’ve agreed to certain things, but I’m not happy with it.”

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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