ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are pleased that the U.S. Customs and Border Protection (CBP) agency reopened rail crossings in El Paso and Eagle Point today.

These rail corridors are essential gateways to many loyal flour millers and their wheat food customers in Mexico who rely on the interconnected U.S. and Mexican rail system for a reliable source of high-quality U.S. wheat. Even short disruptions in this system can have significant negative effects on both sides of the border.

We trust CBP will take the steps needed to avoid rail closures in the future, and we are grateful for their efforts to maintain border security and facilitate lawful trade.

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are disappointed that the Surface Transportation Board (STB) has approved Canadian Pacific Railway’s merger with Kansas City Southern Railroad.

In public comments submitted to the STB on the proposed merger in February 2022, USW said the market power held by the Class I railroads has serious implications for U.S. wheat’s competitiveness compared to other major exporters. NAWG shared similar public comments with the STB in February 2022, which outlined how reliant wheat is on rail and how decreased rail-to-rail competition hurts shippers and growers alike.. Now, this merger takes the U.S. rail system from seven to six Class 1 railroads.

USW and NAWG believe the STB has given a greenlight to rail consolation without regard for the consequences on agricultural shippers from lack of competition in the U.S. rail sector.

“U.S. rail industry consolidation has led to poorer, not improved, service for agricultural shippers,” said USW President Vince Peterson. “In addition, we see extreme disparity in rates for wheat shippers. Rail rates over the last decade have increased exponentially and rates for wheat are higher than rates for other commodities even with similar handling characteristics. Those higher rates make U.S. wheat less competitive in the global market at a time when higher prices already hurt our competitiveness.”

“NAWG is disappointed by today’s STB announcement and maintains our concerns that the merger of CP and KCS will impede competition in the rail market and increase rail rates,” said NAWG CEO, Chandler Goule. “With 50 percent of wheat being exported, wheat is heavily reliant on rail transportation to move across the United States. Since the merger was announced in 2021, NAWG has filed four public comments with the STB opposing the merger, citing a myriad of concerns on the impact to competition, unfair access to competing wheat producing countries, and changes to tariff provisions that could impact wheat farmers.”

USW and NAWG believe the STB must conduct more rigorous oversight of rail rates and service issues going forward. The STB should also aggressively pursue policies designed to inject competition such as reciprocal switching – a proposal that the STB ironically shelved last year because Class 1 rail service was severely challenged for agricultural shippers.

USW and NAWG continue to review the conditions the STB included in the merger agreement that are intended to protect competition and mitigate impacts on communities. We look forward to working with both the new CP-KCS railroad and the STB on addressing the disparities wheat shippers face going forward.

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About USW

The U.S. Wheat Associates (USW) mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit www.uswheat.org.

About NAWG

NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national level. From their offices on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

Following almost two years without a Chief Agricultural Negotiator in the Office of the United States Trade Representative (USTR), U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are very glad that the U.S. Senate has confirmed Doug McKalip to fill the position.

“Mr. McKalip’s work in conservation, with the Animal and Plant Health Inspection Service, and recent negotiations with the Mexican government on biotech issues match up perfectly with some of the most important agricultural trade barriers,” said USW President Vince Peterson. “He is well prepared for this position, and we look forward to working with him to open and grow overseas markets for U.S. wheat,”

“Congratulations to Doug McKalip for filling this critical role,” said NAWG CEO, Chandler Goule. “I know Doug very well from his decades of public service at the USDA, and he will be an absolute asset to USTR, wheat growers and the ag community. With half the wheat grown in the United States destined for foreign markets, it is essential we have these key trade roles filled and we look forward to having Doug advocate for U.S. wheat farmers.”