Overseas markets are key customers for corn growers and other grain producers.
The reason, he stated, is that U.S. corn exports historically relied on a superior transportation network that kept the price of corn competitive with overseas producers. Burrack shared his personal observations of his visits to South American exporters, who have invested hundreds of millions of dollars in their transportation infrastructure. The study also revealed that without improvements, the average price for shipping corn to New Orleans would increase by 20 cents per bushel. This higher price reduces exports and also reduces the bid prices of corn in the Midwest. Higher barge rates also diminish the competitive pressure on railroads, allowing rail rates to rise.