Better market access, network reach, and streamlined delivery are some of the leading drivers in fueling rural and agricultural prosperity. Railroads enable the efficient movement of goods across the country and worldwide, serving as a crucial connection between rural farms and urban centers.

According to the Federal Rail Administration, the U.S. freight rail network runs on almost 140,000 route miles and is widely considered the largest, safest, and most cost-efficient freight system in the world.

In December, the Canadian National Railway (CN) signed an agreement to acquire approximately 218 track miles of the Iowa Northern Railway (IANR), which connects to CN’s U.S. rail network. This means agricultural goods will be transported on a direct route to major markets across the Midwest, like Chicago, and buyers will reach a higher number of agricultural processing centers, like feed mills and soybean plants.

These positive shifts allow for accessibility and opportunity into new and more geographically diverse markets and support the growth of local businesses. Ultimately, the marketplace will be made stronger with competition after this sale, which will enable producers to continue choosing options that best suit their businesses.

Producers across the U.S. continue to point to “higher input costs” as their biggest concern for the upcoming year, according to the Ag Economy Barometer. With a big sigh of relief, this transaction is expected to alleviate some of those costs. Direct service between suppliers increases speed to market, reduces inventory carrying costs, minimizes delays from switching between carriers, and lessens potential plant shortages. 

The chain reaction is better pricing throughout the network from the commodity supplier and buyer. With agriculture's interconnectivity, these efficiencies level the cost/benefit pendulum, and we feel the impacts across our bottom line.

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Lastly, as people who make a living and raise our families in rural settings, we value, above all else, our communities. One of the most important factors to any business deal in our town, county, or state is what it will give back. CN has made it clear that they are committed to the local Iowa communities in which IANR operates – just like IANR has been. They have built community partners from the local fire departments to United Way, have committed to maintaining and allowing for additional career growth for the existing workforce, and have invested more than $300 million U.S. dollars in the Iowa rail network alone. Actions speak louder than words, and these gestures demonstrate their value sets—which are of utmost importance to rural America.

The last holdup to this deal is a review by the U.S. Surface Transportation Board (STB), which is expected to conclude in 2024 and is considered a “minor transaction.” Let’s hope for a swift process, so we can get this win for agriculture and rural communities across the finish line.

Mr. Skorupa is the President of Beartooth Fertilizer Company in Fox, MT. Chris provides fertilizer, custom application, seeding, soil testing, and crop consulting for farmers and ranchers in southern Montana. Beartooth is a family-owned and operated business. Chris serves as the Vice President of RACA and is a former Director for the U.S. Cattlemen’s Association.