Wheat Freight Costs Rise as Plains Crop Shrinks

Southern Plains wheat shippers face higher rail fuel surcharges as hard red winter wheat production falls toward a nearly 70-year low.

NASHVILLE, TENN. (RFD NEWS) — Southern Plains wheat shippers face higher rail fuel surcharges as hard red winter wheat production falls toward a nearly 70-year low. USDA’s Grain Transportation Report says BNSF and Union Pacific made only modest tariff changes for the 2026/27 marketing year, but fuel costs are rising sharply.

The biggest change is the fuel surcharge. USDA says BNSF’s June surcharge will rise to 46 cents per mile, up from 8 cents last June. Union Pacific’s surcharge will rise to 69 cents per mile, up from 30 cents.

That increase can add real cost to wheat movement. For Wichita-to-Houston shipments, USDA says higher fuel surcharges mean a $251-per-car increase for Union Pacific and a $387-per-car increase for BNSF.

The higher freight cost comes as USDA forecasts hard red winter wheat production at 515 million bushels, down 36 percent from last year and the smallest crop since 1957/58. Drought and a late-season freeze drove the decline.

Large old-crop ending stocks may still support transportation demand, but lower production and higher freight costs will shape movement.

Farm-Level Takeaway: Wheat shippers may face higher rail costs even as drought sharply reduces Southern Plains production.
Tony St. James, RFD News Markets Specialist
Related Stories
Last year was a busy year for pesticide litigation in the United States. At No. 10, it kicks off RFD-TV Legal Expert Roger McEowen’s list of the “Top 10” Agricultural Law and Tax Developments of 2025.
Preserving equity through active risk management remains critical in a volatile, supply-driven market.
A look at the legislative year ahead as lawmakers return to Washington with a slate of trade concerns to tackle in 2026—from new Chinese tariffs on beef imports to the USMCA review this summer.

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:

As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
China’s cost advantage with Brazilian soybeans and vague public messaging leave U.S. export prospects uncertain heading into winter.
Expanded aerial capacity strengthens the U.S.–Mexico buffer against screwworm, providing cattle producers with stronger protection heading into winter and reducing risk to herds along the southern tier.
With the U.S.–Vietnam agreement nearing signature, U.S. cotton, corn, and soybean exporters could lock in new demand lanes just as global supply shifts.
Enforceable origin labels could create clearer premiums for U.S. cattle and address concerns some producers have had with competition from foreign imported beef.
A court decision that overturns Enlist labels would remove two major herbicides from use and reshape EPA’s future mitigation policies for other pesticides.