Transportation Infrastructure Crucial for Grain Producers Accessing New Markets
A panel of experts at the High Plains Journal's Crops and Cattle Conference and Ag Expo in Kansas City, Missouri, emphasized that grain producers rely heavily on transportation infrastructure to access new markets.
Ron Suppes, a wheat farmer from Dighton, Kansas, pointed out that farmers often compete against their neighbors for quality and price in a commodity-driven marketplace. He noted that freight costs can be as high as 80 cents per bushel, leaving little room for profit margins when selling at $5.50 per bushel.
Bree Baatz, a grain and oilseed analyst with Terrain, agreed that transportation infrastructure is crucial for accessing new markets. She highlighted the importance of diversifying the US customer base beyond China, which has been a focus area for the US agriculture industry in recent decades.
Jacob Mauldin, manager of safety and security at Tulsa Ports, discussed the potential benefits of the Port's unit train facility, which would enable shipments to take grain to the West Coast while eliminating empty containers. He emphasized that this project aims to increase efficiency and build profits for Midwest farmers.