Canadian Rail Strike Threatens Trade Flows, While BNSF Stops Trains To Mexico

August 22, 2024

On Monday, Aug. 19, the U.S. Grains Council (Council) signed onto an industry letter comprised of 35 organizations that urged Canadian Prime Minister Trudeau to address concerns regarding a potential significant disruption to the North American supply chains and requesting he take action to ensure railroad operations continue to prevent serious damage to the Canadian and U.S. economies.

 

A lockout or strike – that came today, Aug. 22 - could lead to shutdowns or slowdowns of rail-dependent facilities resulting in harmful consequences for Canadian and American agricultural producers, the agricultural industry and both domestic and global food security.

 

Members of the U.S. Grains Council rely on freight rail transportation from the Canadian National Railway Company (CN) and Canadian Pacific Kansas City (CPKC).

 

The letter stressed that:

  • Trucking is not a viable option for many agricultural shippers due to their high-volume needs and the long distances for many of the movements.
  • Agricultural facilities have no viable alternative transportation options to supply Canada’s international customers and the inability to cycle products through the supply chain could limit producers’ ability to deliver harvested crops.
  • Delayed shipments impact costs not only for the value chain, but consumers, who will ultimately pay a higher price after the strike is resolved.
  • Biofuels operations, in particular, require uninterrupted rail service. Interruptions quickly lead to storage capacity issues and restarting these facilities are complex, often causing domino disruptions for several weeks.

 

The Council will keep members updated as soon as we hear something definitive.

 

Complicating matters, BNSF, a U.S. railway that operates one of the largest railroad networks in North America, with about 32,500 route miles in 28 states, announced yesterday it shut down all operations to Mexico immediately and for the next 30 days due to ongoing congestion and service interruptions resulting in critical equipment being held in Mexico.

 

Shuttles within BNSF loading facilities will continue to go through permitting to Mexico. However, customers with a trip falling within the 30-day window may cancel their shuttle free of charge or continue to reschedule with their marketing representative.

 

BNSF is one of the largest railways with five important gateways to Mexico – at San Diego, El Paso, Eagle Pass, Laredo and Brownsville.

 

The Council is concerned for more rail-dependent “just-in-time-delivery” customers located in Jalisco. This will compound existing pressure in the system and exacerbate ongoing delays for raw materials to Mexican customers.

 

The Council is eager to find a solution for both sides of the border to increase capacity and continue trade flows.

Lou Lamoreux Farm
By Tara Desmond September 3, 2026
Livestock farmer Lou Lamoreux talks about his farming operation.
captain Cornelius at shake it up cocktail lounge
By Tara Desmond September 3, 2026
4.29M bushels of U.S. corn fueled beverage alcohol production in July 2026 alone — up 54% from July 2025. Corn's in your Labor Day toast!
aerial view of short corn
By Tara Desmond September 3, 2026
Illinois farmer Steve Fourez tests short stature corn against conventional hybrids, exploring yield potential and late-season management benefits.
USDA building
By Lyndi Allen September 3, 2026
This week, U.S. Secretary of Agriculture Brooke L. Rollins announced the U.S. Department of Agriculture (USDA) Data Modernization Plan to put Farmers First, reduce unnecessary burdens on producers, and improve the timeliness, accuracy, and usefulness of the data that informs agricultural decisions. USDA data informs crop and livestock estimates, risk-management tools, disaster assistance, and critical business decisions made by farmers, ranchers, agribusinesses, researchers, and policymakers. In February 2026, Secretary Rollins issued a Request for Information seeking feedback on the opportunities, challenges, and emerging areas in USDA data. That feedback helped shape the USDA Data Modernization Plan and its four pillars: Modernize the Data Reporting Experience: USDA will expand use of administrative data, improve mobile access to surveys, explore opportunities to use prefilled information where appropriate, and strengthen coordination across the Department. These changes will reduce duplicative requests and limit the amount of time producers spend reporting information. Enhance Acreage and Yield Estimation: USDA will conduct a pilot to evaluate the use of improved satellite imagery, geospatial tools, crop models, and other emerging technologies combined with essential producer-reported information to enhance acreage and yield estimations. USDA will also assess the use of optional field inputs to enhance and ground truth yield estimates and continue advancing yield research through collaboration with agricultural partners and land-grant universities. Integrate Data and Technology Platforms: USDA will modernize its technology infrastructure, expand secure data-sharing capabilities, and evaluate the responsible use of tools such as artificial intelligence and machine learning. Better integrated systems will improve efficiency, reduce duplication, and allow USDA to produce more timely and useful information. Expand Trust and Transparency with Producers: USDA will protect producer privacy, clearly explain why information is requested and how it is used, and create additional opportunities for producers to provide feedback. USDA will also improve communication surrounding reports, methodologies, response rates, and data limitations. USDA will begin implementing actions under the plan immediately and will continue engaging farmers, ranchers, and agricultural stakeholders throughout the process. The Department will evaluate new approaches carefully, protect privacy and confidentiality, and publish clear methodologies and supporting information to maintain the integrity of USDA’s agricultural statistics. See USDA’s Full Data Modernization Plan
Cornfield beside a dirt path under a blue sky with wispy clouds
By Lyndi Allen September 2, 2026
EPA has granted 1.76 billion RIN exemptions to small refiners, raising concerns among farmers and biofuel producers about the potential impact on demand for renewable fuel.
Weekly News
By Lyndi Allen August 28, 2026
News from IL Corn for week ending 8/28/26
Show More