No Room in the Bin: Huge Grain Crops Spell Headache for U.S. Farmers

The U.S. Department of Agriculture forecasts record crops this year for corn and soybeans, the two largest U.S. crops in terms of production. Barring a devastating freeze or torrential rains before the harvest ends, corn production is projected at 366 million tonnes and soybeans at 106.5 million tonnes, reported Yahoo!News.

That’s the good news. The bad news is that handling such yields will be complicated and likely to create logistical challenges for American farmers trying to get their crops to market. According to Arthur Neal, a USDA transportation and marketing official, about 3.5% of the crops cannot be kept in permanent storage structures—the highest share since 2010. Some farmers will rely largely on field storage. Their crops will get picked up and shipped during the fall or winter, and rains may cause some spoilage.

Then there is transportation. Rail problems have affected grain shippers, especially in several northern states on the Canadian border. An exceptionally severe winter snarled transportation, and the growing volume of shale oil produced in North Dakota being transported by train has weighed on freight service to grain shippers. Since October 2013, the rail freight service for grain has been characterized by long delays, missed shipments, backlogs, and higher-than-normal costs.

In addition, U.S. farmers may face a drop in revenues due to an abundant harvest. The USDA is forecasting a 14% drop in farm-related income in the government’s fiscal year ending Sept. 30. S