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

Related Stories
Acre reporting is crucial to maximize specialty crop aid.
For producers, success this season will require more than just a clean field; it will require meticulous record-keeping, a proactive written mitigation plan, and a constant eye on both the forecast and the federal docket.
Tidal Grow’s AlignN delivers encapsulated nitrogen to leaves, boosting in-season response, yield gains, and farm profits.
UNL student fellow Alison Walbrecht shares her perspective on building support for agricultural research, extension, and teaching while gaining hands-on insight into federal policymaking.
RealAg Radio host Shaun Haney explains how geopolitical developments in the Middle East can create energy-driven pressures that impact the supply chain and reshape demand for certain ag products.
Jake Charleston of Specialty Risk Insurance offers his perspective on current cattle market conditions and shares advice for producers seeking to stay protected in an uncertain market.

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.

LATEST STORIES BY THIS AUTHOR:

Strong beef demand is offsetting weaker cash cattle.
Brazil logistics issues may support U.S. soybean demand.
AFBF Economist Danny Munch breaks down a new Farm Bureau analysis showing that producers now earn less than 6 cents of every food dollar, as farm input costs continue to squeeze margins.
As ag lawmakers in the Senate await the House vote on the Farm Bill, they are eager to discuss the challenges farmers face before it is their turn to take up the critical legislation.
Productivity gains are supporting supply despite limited herd expansion.
Elena Chavez with Halter provided insight into the company’s virtual fencing technology, its adoption in the U.S., and the impact of recent funding on ranching operations.