The Importance of Transportation to Agriculture

Illinois Agricultural Leadership Program

February 27, 2017

Washington, DC

Bruce Blanton

Director 

Transportation Services Division

USDA/AMS
Transportation Services Division (TSD)

• Analysis and market reports:

§ U.S. grain

§ Brazil & Mexico grain analysis 

§ Modal share analysis

§ Commodity and port profiles

§ Rail studies

§ Study of Rural Transportation 

Issues

• STB filings

• Cooperative research agreements

• Data

www.ams.usda.gov/services/transportation-analysis
Agriculture is Largest Sector User of Freight
What Agriculture Moves
Agricultural Freight, Ton-Miles
Corn production, ethanol plants, export ports, grain consuming animal 

units, and the transportation system, 2013

Source: USDA/AMS analysis of data from USDA National Agricultural Statistics Service State and County 

level Statistics 2013, and Federal Grain Inspection Service Port Inspection data, 2013. 
Source: U.S. Census International Trade Data

$0

$20

$40

$60

$80

$100

$120

$140

$160

Billions

Trade Balance Imports Exports

U.S. Agricultural Trade
Mississippi River

49%

Texas Gulf

10%

PNW

27%

Interior

10%

Other

4%

2016 GRAIN EXPORTS

Source : USDA-GIPSA-FGIS

Mississippi 

River

59%

Texas Gulf

3%

PNW

22%

Interior

14%

Other

2%

2016 CORN EXPORTS

Source : USDA-GIPSA-FGIS

Mississippi 

River

59%

Texas Gulf

2%

PNW

24%

Interior

8%

Other

7%

2016 SOYBEANS EXPORTS

Source : USDA-GIPSA-FGIS

Mississippi 

River

14%

Texas Gulf

PNW 24%

50%

Interior

6%

Other

6%

2016 WHEAT EXPORTS

Source : USDA-GIPSA-FGIS
U.S. Crop Production

Source: National Agricultural Statistics Service

0

2

4

6

8

10

12

14

16

199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016

Billion Bushels

CORN SOYBEANS WHEAT
Modal Share 

(in percent, 2009-13 average)

Mode Exports Domestic Total

Rail 45 23 29

Barge 45 1 13

Truck 10 76 58

Source: Transportation of U.S. Grains: A Modal Share Analysis, June 2015, Transportation & Marketing Programs/AMS/USDA
Truck Flows: Agriculture vs. Total Freight

Source: U.S. DOT, Bureau of Transportation Statistics and Federal Highway Administration, FAF version 4.2.
Barge Flows: Agriculture vs. Total Freight 

Source: U.S. Department of Transportation. The map uses U.S. Army Corps of Engineers 2012 waterborne commerce data.
Rail Flows: Agriculture vs. Total Freight 

Source: U.S. Department of Transportation. The map uses data from the 2013 Carload Waybill Sample.
Trucking & Agriculture

• Trucks carry about 75% of the tonnage of agricultural, 

food, forest, alcohols, and fertilizer products 

• The flexibility trucking offers is important to agriculture 

(planting and harvest seasons)

• Shipment distances have increased with consolidation 

of railroads, farms, and facilities

• FAST Act:

o Provides $6.3 billion over 5 years for States to 

invest in freight projects on the national highway 

freight network

o Establishes National Highway Freight Program
Grain Truck Rates

($/mile per truckload)

Source: GTOR (AMS)
Petroleum and 

related products, 29%

Crude, 18% Coal, 22%

Chemicals, 9%

Manufactured Goods, 

5%

Equipment, 1%

Food & Farm, 16%

Source: U.S. Army Corps of Engineers

Barge Tonnage by Commodity Group
Lock Closures Study

• Examined separately the potential 

impact of 2 lock closures (Miss L&D 

25 and La Grange Lock)

• Lock closures would:

o Reduce economic activity, jobs, 

and labor income

o Depress corn and soybean prices 

in adjacent States

o Shift exports from the Gulf to 

PNW

o Increase rail rates
Quarterly spot barge rates from St. Louis, MO, 

to New Orleans, LA, 1994-2015

0

100

200

300

400

500

600

19941994199519951996199619971997199819981999199920002000200120012002200220032003200420042005200520062006200720072008200820092009201020102011201120122012201320132014201420152015

Percent of Tariff

Source: USDA-AMS-TMP-TSD
Importance of Rail for U.S. Agriculture

• Railroads move about 29% of all U.S. grain and 45% 

of export grain movements

• Ag shippers are concerned with many issues, such as:

o Service

o High rates

o Switching limitations/restricted interchange

o Effectiveness of the rate challenge process

• Record investments by rail - $28 billion in 2014 and 

$30 billion in 2015
Containers, 

45.69%

Coal, 12.83%

Chemicals, 

6.41%

Trailers, 3.53%

Grain, 4.84%

Motor Vehicles 

& Equipment, 

4.10%

Crushed Stone, 

Sand & Gravel, 

3.69%

Petroleum 

Products, 2.68%

Other 16.22%

Containers, 

40.90%

Coal, 17.54%

Chemicals, 

6.16%

Trailers, 4.40%

Grain, 4.14%

Motor Vehicles 

& Equipment, 

3.70%

Crushed Stone, 

Sand & Gravel, 

3.39%

Petroleum 

Products, 3.02%

Other 16.75%

2013 2016

Source: AAR Weekly Carloading Report

Rail Commodity Shares
Trends in real rail rates and input costs, 1989-2013

Source: Transportation Research Board, Modernizing Freight Rail Regulation, 

2015.
Ocean Shipping

• About 75% of U.S. ag exports are shipped by ocean 

(28% in containers)

• The Gulf and Pacific Northwest are major ports for 

U.S. grains

• About 7% of U.S. grain exports are in containers

• Container Ships - Increasing ship size, carrier 

alliances and consolidation

• Container and bulk vessel market characterized by low 

rates and over-capacity
• Federal Maritime Commission report (July 2015):

o Port congestion increasing with larger vessels

o Investment needed for ports

o Chassis management needs improvement

o Driver turn times need improvement; independent 

contractor or employee classification in dispute 

• DOT annual port performance freight statistics report 

on top 25 ports.

• Upcoming labor negotiations on all coasts 2016-2019

Ocean Shipping Issues
Ocean freight rates for bulk grain from U.S. to Japan

Source: Baltic Exchange, Inc. / Drewry Shipping Consultants Ltd 

<www.drewry.co.uk>/O'Neil Commodity Consulting
Container freight rates for U.S. West Coast (LA) to 

Shanghai, China

Source: Drewry Maritime Research
Wrap-Up / Conclusions

• TSD is a resource on ag transportation (data and 

research)

• Freight transportation is important to U.S. agriculture’s 

competitiveness

• Agriculture is a major user of the U.S. transportation 

system, relying on multiple modes

• Agricultural freight in U.S. is increasing

• Agriculture needs workable solutions (e.g., reasonable 

rates, access, reduced port congestion and ship size 

issues) 
Bruce Blanton

Director

Transportation Services Division

Agricultural Marketing Service

U.S. Department of Agriculture 

Phone: (202) 690-3244

Email: bruce.blanton@ams.usda.gov

Website: www.ams.usda.gov/agtransportation

Contact Information