Ag Community Concerned About Potential Rail Strike

A threatened strike and lockout at Canadian Pacific Kansas City Railway could cripple shipments of food grains, beans, potash, coal, and timber from Canada and farm and energy imports from the U.S.

“Corn, barley, oats, things like that, a lot of those products move on rail into Canada," noted American Farm Bureau economist Danny Munch.  "So, just for context, Canada was the fifth-largest destination for cereal grains, receiving $1.1 billion in U.S. exports.”

Any rail stoppage could disrupt much of that trade across North America.  Munch said it would come at an especially bad time for American producers.

“We are heading into harvest season. We are expecting record yields. We have commodity prices dropping. A lot of our bins are still zero to 25% full because a lot of farmers have been holding onto products. And, if you have this rail strike happen, you sort of put a pressure valve on the ability to move product.”

Which Munch pointed out puts added downward pressure on prices.  Canadian Pacific Kansas City said it would stop all new U.S. shipments headed for Canada starting early in the week, with a full-blown lockout and strike possible by Thursday.  That, barring a settlement or Canadian government intervention.

Issues at stake include wages, rest, and labor availability.

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