Railroads, Tariffs, And Exports Highlight Grain Transport Trends

Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.

NASHVILLE, Tenn. (RFD-TV) — U.S. grain transportation developments this September span policy, rail tariffs, and export activity. Six industry associations are urging the Surface Transportation Board (STB) to clarify its federal preemption authority under the Interstate Commerce Commission Termination Act, citing growing uncertainty and conflicting state regulations. The STB said it may issue a formal policy statement by the end of the year.

On the rail side, CSX announced higher tariffs for 2025/26 corn and wheat shipments to domestic destinations, effective October 1. Export rates remain essentially unchanged. Meanwhile, STB harvest plan filings show that western carriers, such as BNSF, UP, and CPKC, are increasing grain capacity, while eastern carriers, including CSX and Norfolk Southern, anticipate slightly fewer grain trains during peak harvest.

USDA reported export sales for the new marketing year at 36.27 million metric tons—up 11 percent from last year. Weekly corn sales totaled 1.23 mmt, soybeans 0.92 mmt, and wheat 0.38 mmt. Grain rail traffic rose 9 percent week-over-week, while barge shipments increased modestly but remain 48 percent below last year. Ocean freight rates to Japan edged up from the Gulf but held steady from the Pacific Northwest. Diesel fuel averaged $3.75 per gallon, 21 cents higher than a year ago.

Tony’s Farm-Level Takeaway: Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.
Related Stories
Tom McComas became involved with toy trains by accident and with reluctance. Now, he hosts “I Love Toy Trains,” where he invites viewers to enter the delightful and charming world of toy trains.
Farm legal and taxation expert Roger McEowen discusses tariffs’ impacts on agriculture, deferred payment contracts, tax easement issues, and the rise in warrantless searches on farms and ranches.

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:

Outdated reporting thresholds reduce cash-market visibility and increase the urgency of comprehensive Mandatory Price Reporting reform.
Rural employers are slightly more optimistic, but labor shortages and renewed price pressures continue to limit growth across farm country according to a
Stable U.S. fundamentals continue for major crops, but global adjustments in corn, soybeans, wheat, and cotton may influence early-2026 pricing.
Corn and wheat exports continue to outperform last year, while soybeans show steady but subdued movement compared to 2024.
Tariff relief and new trade agreements may temper food costs by reducing import costs.
Grain farms still have strong balance sheets, but another stretch of low profits will force hard cost cuts, especially on high-rent, highly leveraged operations.