Thune, Klobuchar ask USDA to quantify impact of rail congestion
October 2, 2014
BY Erin Krueger
Sens. John Thune, R-S.D., and Amy Klobuchar, D-Minn., recently sent a letter to Agriculture Secretary Tom Vilsack, requesting the USDA conduct an economic analysis of the rail service challenges facing agricultural shippers, including the impacts felt by the ethanol industry.
Within the letter, the senators note that while they understand Vilsack has briefed President Obama on the critical rail situation in the Midwest, no regional or national studies have been conducted to assess the economic impact of rail service challenges. Thune and Kobuchar reference a recent University of Minnesota report that indicates transportation bottlenecks cost Minnesota farmers almost $100 between March and May of this year. The farming community, however, is not the only sector impacted by rail delays.
Thune and Kobuchar ask that the USDA conduct a detailed economic analysis of ongoing transportation challenges facing producers and users of agricultural projects, including ethanol producers, food processors, and livestock producers.
Advertisement
“When completing this analysis, we request that the USDA also consider, as appropriate, commodity prices, food prices, and changes in agricultural exports. We hope that the information provided by this analysis will present a clearer picture of the challenges facing the agriculture industry as we work to help resolve them,” wrote the senators.
Advertisement
Related Stories
CountryMark on July 22 celebrated the completion of more than $100 million in upgrades at its refinery in Indiana, including those related to soybean oil storage. The facility produces renewable diesel via coprocessing technology.
ATOBA Energy and Air Moana are partnering to implement scalable solutions for the supply of SAF. The collaboration aims to ensure long-term SAF availability while supporting local initiatives to develop sustainable fuel production in Tahiti.
While final IRS guidance is still pending, the foundation of the 45Z program is well defined. Clean fuel producers should no longer be waiting; they can now move forward with critical planning and preparation, according to EcoEngineers.
Neste Corp. on July 24 released second quarter results, reporting record quarterly renewable product sales volumes despite weaker margins. SAF sales were up nearly 80% when compared to the first quarter of 2025.
Valero Energy Corp. on July 24 released second quarter results, reporting a profitable three-month period for its ethanol segment. The renewable diesel segment posted a loss, but the company’s new sustainable aviation fuel (SAF) unit operated well.
Upcoming Events
