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
Winter Weather And Markets Reshape Agriculture Nationwide This Week
The biggest development of 2025 in agricultural law and taxation was the signing into law on July 4 of the Trump Administration’s landmark legislation, the “One Big Beautiful Bill” Act (OBBBA)
Falling livestock prices, combined with higher input costs, continue to squeeze farm profitability heading into 2026.
Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.
Quinn Rutt of Upstream Ranch previews the Nebraska cattle operation’s 49th Annual Production Sale where buyers can expect standout sire groups and a blend of long-standing ranch practices with modern genetic selection.
Jim Matheson, CEO of the National Rural Electric Cooperative Association, provides new updates on winter storm impacts and the outlook for rural power reliability.

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:

HTS Commodities’ Lewis Williamson provides updates on how growers are preparing for spring planting in an unpredictable agricultural landscape.
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.
Leadership continuity signals a steady focus on family farm advocacy.
National Pork Producers Council incoming president Rob Brenneman shares insights from the National Pork Industry Forum in Kansas City, where producers gathered to discuss Farm Bill policy, sustainability, and other priorities for the year ahead.
India trade tensions may affect the U.S. export outlook.