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
American Farm Bureau Federation (AFBF) economist Bernt Nelson provides an updated outlook on the current U.S. cattle market.
Sen. Roger Marshall explains which types of beef are imported into the United States, how there’s room for new imports, and logical reasons for current high prices.
Record Australian exports and rising U.S. imports reflect continued tight domestic cattle supplies — a reminder that herd recovery remains key to balancing future beef prices.
Australia’s expanding harvest and global oversupply are keeping wheat and barley prices capped, though canola markets may hold firmer on shifting oilseed demand.
Bioethanol continues to gain ground as the bridge fuel connecting agriculture, aviation, and maritime industries in the global shift toward lower-carbon energy.

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:

Pork producers should prioritize health and productivity gains, hedge feed and hogs selectively, and watch Brazil’s export pace and China’s sow policy for price signals.
For tight margins, contract grazing leverages existing acres into new income streams and spreads risk. Here are some tips for row crop farmers looking to diversify.
Global nitrogen and phosphate prices remain high despite improved supply fundamentals, with limited Chinese exports and stronger fall applications tightening availability.
Record output, larger stocks, and softer exports point to a well-supplied domestic ethanol market as harvest progresses.
The Court may limit emergency tariff powers, complicating a key bargaining tool; ag could see shifts in input costs and export dynamics as China, Brazil, and India talks evolve.
U.S. sugar producers and processors should brace for price pressure and challenging export logistics with global sugar supply ramping up — driven by Brazil, India, and Thailand — especially at the raw processing level.