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Transportation struggles expected to impact farmer profitability

Lingering transportation challenges are expected to impact farmer profitability in the year ahead.

American Farm Bureau economist Danny Munch says the railway labor force is struggling to reach pre-pandemic levels.

“Until they’re able to reach those levels, their ability to get that capacity is continuously complicated. And that makes it more difficult for farmers and ranchers to have good service.”

Speaking to Brownfield at the Iowa Farm Bureau annual meeting in Des Moines Tuesday, he says that’s being compounded by low levels on the Mississippi River that have limited barge loads.

“That increases the demand for transportation on a smaller amount of supply, that shoots up rates that farmers and ranchers have to pay for moving those barges.”

Munch says if these issues persist, farmers will face tighter input supplies and higher marketing costs.