Nearly three dozen North American agriculture groups, in a joint letter to the U.S. and Canadian governments on Monday, urged action to avoid a stoppage
A looming stoppage of freight railway operations across Canada would disrupt North America’s agricultural supply chain, snarling shipments of everything from wheat to fertilizer and meat., an effective duopoly, will shut nearly all freight rail services in Canada for the first time at midnight on Thursday.
“The impact of a strike would be particularly severe on bulk commodity exporters in both Canada and the United States as trucking is not a viable option for many agricultural shippers,” the letter said, citing large volumes and vast distances. CPKC ships grain from the Dakotas and Minnesota to west-coast export terminals via Canada, according to the U.S. government.
Shippers are also concerned about U.S. corn products heading to Canada. In 2023, Canada was the top destination for U.S. ethanol exports, and almost three-quarters travelled by rail, according to USDA.The U.S. exported $28.2-billion of agricultural products last year to Canada, its third-largest destination for agricultural exports behind China and Mexico, USDA said.
U.S. corn farmers apply fertilizers in fall and spring, but potash imports from Canada are consistent throughout the year, said Krista Swanson, chief economist for the National Corn Growers Association. Canadian meat producers warned that a rail stoppage would result in millions of dollars in losses and waste.
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