Federal Transportation Infrastructure Investments 

and Implications for Agriculture

National Council of Farmer Cooperatives 88th Annual Meeting

Gov’t Affairs Conference

Fort Lauderdale, FL, February 15, 2017

Bruce Blanton

Transportation Services

USDA/AMS
AMS Transportation Mission

Provide Insight on Ag Transportation for Stakeholders & 

USDA Policymakers through:

• Market Reports

• Economic Analysis

• Regulatory Representation

• Transportation Disruption Reports (internal)

• Outreach to Stakeholders
Transportation Services Division

Transportation Analysis and Market 

Reports:

• U.S. Grain

• Other Commodities

• Brazil & Mexico Grain Analysis 

• Modal Share Analysis

• Commodity Profiles

• Rail Studies

• Study of Rural Transportation Issues

• STB Filings

• Co-op Research Agreements

• Data

http://www.ams.usda.gov/agtransportation
Agricultural and total freight moving on U.S. 

National Highway System, 2012

Source: U.S. Department of Transportation, Bureau of Transportation Statistics and Federal 

Highway Administration, Freight Analysis Framework, version 4.2, 2016. 
Why is Transportation Important to Agriculture?

Soybean production by county, bio-diesel plants, export ports, high protein animal units 

(HPAU) by State and the transportation system, 2013.
Corn, Soybean and Wheat Production

Source: National Agricultural Statistics Service

0

2

4

6

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12

14

16

199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016

Billion Bushels

CORN SOYBEANS WHEAT
U.S. Agricultural Trade

Source: U.S. Census International Trade Data

$0

$20

$40

$60

$80

$100

$120

$140

$160

Billions

Trade Balance Exports Imports
DOT’s Beyond Traffic: 2045 Report

• Bottlenecks severely limit performance and capacity of 

the highway system, delaying large numbers of truck 

freight shipments. 

• All freight modes face capacity constraints and rising 

maintenance costs. 

• Freight volume projected to rise by 40 percent (18 b. 

tons in 2015, 25.3 b. tons in 2045)

• Population increase of 70 million people (320 mil to 

390 mil)
DOT’s Conditions & Performance Report (2015)

• $836 billion backlog of unmet capital investment needs 

for highways and bridges.

• Next two decades will require another $142.5 billion 

from State, federal and local to address the backlog 

and expected needs.

• In 2012, $105.2 billion spent on infrastructure, 36 

percent less than needed to improve highways and 

bridges
2016 Failure to Act Report

American Society of Civil Engineers (ASCE)

• Ten-Year Investment Gap (2016-2025) of $1.1 trillion 

for highways, bridges, commuter rail and transit.

• Results in $2.2 trillion in lost sales, exports, $1.2 trillion 

less GDP, and 1.1 million less jobs by 2025.

• Agriculture is the largest commodity sector using 

trucks, accounting for 24 percent of all commodities 

moved and 37 percent of total ton miles in 2012. 
MAP-21 (enacted in 2012)

Moving Ahead for Progress in the 21st Century

• Greater emphasis on freight movements than past 

authorizations. 

• Created a specific Freight Program (23 USC 167) 

requiring DOT to develop a National Freight Network and 

a National Freight Strategic Plan. 

• Encouraged States to develop State Freight Plans and 

State Freight Advisory Committees.

• Focused mostly on highways, not larger multimodal 

freight network.
FAST Act (enacted in 2015)

Fixing America’s Surface Transportation Act

• Builds on MAP-21 – dedicated funding for freight 

projects, $10.8 billion over 5 years.

• National Highway Freight Program -

o $6.3 billion formula funding for State DOTs for 5 

years (10% for multimodal)

o Multimodal Freight Program that requires a National 

Multimodal Freight Policy. 

• Build America Bureau - innovative financing

o FASTLANE Grant Program - $4.5 billion over 5 

years. 
FAST Act (2015)
National Multimodal Freight Policy (49 U.S.C. 70101)

• Ensures the Nation’s transportation Network keeps the 

U.S. competitive in the global economy.

• Goals –

o Innovations (competitiveness, congestion, 

productivity) 

o Safety, State of Good Repair, Resiliency, Lower 

Costs, Use of Technology, Efficiency, Reliability 

o Better Movements (across rural & urban, between 

rural & urban, gateways) 

o Multi-State Planning, Environmental, State & Local. 
National Freight Strategic Plan (NFSP)

In 2015, DOT released draft National Strategic Plan 

identifying 6 major trends and challenges:

• Growth in Freight Tonnage

• Underinvestment in the Freight System

• Difficulty in Planning/Implementing Freight Projects

• Continued Focus on Safety/Security/Resiliency

• Increased Global Economic Competition

• Development and Use of New Technologies

Per the FAST Act, DOT is developing a Final NFSP to be 

released by December 2017
National Multimodal Freight Network

Four Basic Purposes:

• Assisting States in strategically directing resources to 

improve performance of freight movements (e.g. 

moving grain and ethanol efficiently).

• Inform freight transportation planning.

• Assisting with prioritizations of Federal investments of 

routes/corridors that are nationally significant for freight 

movement.

• Assisting and supporting Federal investments to meet 

the goals of the National Multimodal Freight Policy and 

the National Highway Freight Program. 
DOT Established Interim Network in 2016

• Includes: Highways, Rail, Ports, Waterways, Great 

Lakes, Airports, Intermodal, and Short Line Rail

• Example of Ag Project the Network May Identify:

ADM 100 car train to near dock at Port of Oakland; 

Cargo transloaded into containers for export to Asia.

o Canadian ports handled prior shipments.

o Facility used CA State Funds (TCIF) and Federal 

TIGER grant funds.

o Shows importance of intermodal connectivity for 

container export of ag products and need to 

upgrade ports to compete with Canada & Mexico. 
Considerations in Final Network

• Freight Movements O/Ds – to/from/within

• Volume, value, tonnage, strategic importance

• Global and domestic supply chains

• Economic factors, including balance of trade

• Access to border crossings, ports, facilities, agriculture, 

manufacturing, pipelines, distribution centers

• Access to energy (including biofuels)

• Links to intermodal, multimodal connections

• Choke points, congestion, impediments

• Important corridors for State, Local, multi-State, MPOs
State Freight Plans & Advisory Committees

State Freight Plans:

• Per FAST Act, States must develop State Freight 

Plans to receive highway formula funding.

• Must be completed by December 4, 2017.

• Used to help prioritize infrastructure investments.

State Advisory Committees (MAP-21 encouraged):

• Helps develop State Freight Plans.

• Advise on priorities, projects, issues & funding needs.

• Coordinate regional needs.

• Promotes public-private info sharing.
National Highway Freight Program (23 U.S.C. 167)

National Highway Freight Network (NHFN):

• Invests in infrastructure aimed at:

o Improving the movement of freight on NHFN

o Strengthening economic competitiveness

o Reducing congestion

o Reducing cost; increasing productivity; improving 

reliability

• Formula Funding ($6.3 billion formula funding for 

State DOTs for 5 years; 10% for multimodal)

• Critical Rural and Urban Freight Corridors
National Highway Freight Network (23 U.S.C. 167)

Directs Federal resources toward improved performance and 

includes 4 Subsystems:

o Primary Highway Freight System (PHFS) – 41,518 

miles

o Other Interstates (not PHFS) – another 9,511 miles

o Critical Rural Freight Corridors – Designated by States; 

includes ports, agricultural, mining, energy, intermodal. 

Greater of 150 miles or 20% of PHFS in the State. 

o Critical Urban Freight Corridors – Designated by States 

and MPOs; includes public roads in urban areas 

connecting the Interstate Highways to important facilities. 
MARAD’s Strong Ports Program

• Helps manage TIGER and FASTLANE grants awarded 

to ports by DOT.

• Currently, $720 million in grants with 56 port projects.

• Supports ports to increase capacity and efficiency in 

handling cargo.

• Helps plan, engage with stakeholders, operational and 

capital financing and project management.

• Example: $11 million FASTLANE grant for $19.5 

million Coos Bay Rail Line Tunnel Rehab Project in 

Oregon, a port which handles exports of forest 

products. 
Marine Highway Program

• Projects extend surface transportation by commercially 

integrating complementary marine service options. 

• Used to reducing landside corridors congestion or 

mitigate environmental challenges. 

• Currently includes 24 all-water marine highway routes.

• Example: IL Container on Barge Shuttle; awarded 

$713,000 for demo project to connect with UP and 

BNSF rail shuttle access for grain exports.

• Example: James River Container Expansion Project –

Port of VA – expands “64 Express” container on barge 

service between Hampton Roads and Richmond, VA, 

which is already removing 15,000 truck trips per year. 
Build America Bureau
Infrastructure Finance 

• Transportation Infrastructure Finance and 

Innovation Act (TIFIA) – direct loans, loan 

guarantees, standby lines of credit. 

• Private Activity Bonds (PABs) – tax exempt bonds; 

by Nov 2016 $6.5 billion in bonds issued. 

• TIGER Grants – Since 2009, $5.1 billion awarded to 

421 projects in 50 States, Territories and Tribes. 

• FASTLANE Grants – Funds critical freight and 

highway projects; $4.5 billion FY 2016-2020, including 

$850 million in FY 2017. DOT awarded $760 million in 

grants to 18 projects in 15 States in 2016. 
Importance to Agriculture of TIFIA Loans 

Example: $325 million direct loan Long Beach, CA to 

help finance $1.3 billion replacement of the Gerald 

Desmond Bridge 

• Ports of LA/LB are important for containerized ag 

exports crossing the bridge to be exported. 

• Bridge is a National Highway System intermodal 

connector route and part of the National Highway 

Freight Network. 
How PABs Are Important to Agriculture

Example: CenterPoint Intermodal Center, in Joilet, IL, to 

improve infrastructure for containerized export of grain. 

• Issued $325 million in tax exempt bonds, with ability to 

borrow up to $300 million more. 

• Facility is a logistics center and inland port 40 miles 

southwest of Chicago, which includes UP and BNSF 

facilities.

• Provides ag exporters with access to double-stack 

container trains to ports for companies like Cargill, 

Delong, and Georgia Pacific. 
TIGER Grants – Examples of Ag

• Example: $6 million in 2010 TIGER funding, matched 

with $14.8 million, to an intermodal freight 

transportation hub in southwestern Illinois. Combines 

barge, rail and truck for moving liquid and dry bulk ag 

products via Mississippi River without a lock. 

• Example: $16 million in 2011 TIGER funding, matched 

with $5 million for track restoration of MRC branch line 

in SD, which takes 7,200 truckloads of grain off rural 

roads and onto Dakota Southern Railroad. 

• Example: $12.7 million in 2014 TIGER grants, 

matched with $17.3 million, restoring 42 miles of MRC 

branch line in SD, from Chamberlain to Presho, leads 

to build of $32 million Liberty Grain, east of Kimball. 
FASTLANE (23 U.S.C. 117)

Nationally Significant Freight & Highway Projects Program

• Established by the FAST Act

• $4.5 billion over 5 years in FASTLANE grants

o At least 25% of funding for rural projects.

o 1st Round - DOT awarded 18 projects totaling 

$760 million.

o 90% of funding is for major projects with costs 

in excess of $100 million.

o Only $500 million across all five rounds may be 

awarded to freight rail, port, or intermodal. The 

rest must be awarded to highway projects.
FASTLANE Grants – Ag Example

Example in Iowa: $25.6 million grant to Iowa DOT to 

assist with the development of a $46.5 million full service 

multimodal facility in Cedar Rapids, IA.

• The facility will lower transportation costs through 

greater efficiencies

• It will help farmers and small businesses transport 

more goods and grow their businesses. 

Example in Idaho: $5.1 million FASTLANE grant for the 

$8.5 million U.S. 95 North Corridor Access Improvement 

Project, which serves agricultural areas. 
Wrap Up

• Transportation is vitally important for agriculture. 

• New Federal laws and funding are explicitly targeted 

for freight, and some of that is specifically set aside for 

rural interests, including agriculture. 

• States play a key role in developing funding priorities.

• Federal authorities for transportation infrastructure are 

important for agricultural and rural areas. 

• Agricultural stakeholders need to pay attention and be 

involved; the sector’s competitiveness depends on it. 
Contact Information:

Bruce Blanton

Director, Transportation Services Division

Agricultural Marketing Service

U.S. Department of Agriculture 

Phone: (202) 690-0435

Email: bruce.blanton@ams.usda.gov

Website: www.ams.usda.gov/agtransportation