National Grain and Feed Association (NGFA) President and CEO Mike Seyfert testified before the Surface Transportation Board (STB), emphasizing the potential for growth in the freight rail industry through sound policy measures and increased domestic production.
Seyfert pointed out that U.S. grain production has nearly doubled over the past 40 years, with USDA projections showing corn, soybean, and wheat production rising from 21 billion bushels in 2023 to 23 billion by 2033. Grain exports are also expected to increase from 4.5 billion to 5.5 billion bushels over the same period.
“In addition to organic rail freight growth, I believe there is room to grow market share for grain through sustained efforts by Class I railroads to improve service and become more cost-competitive,” Seyfert said. He also emphasized the importance of open communication between agricultural shippers and railroads, which are key NGFA partners.
Seyfert outlined several policy recommendations to the STB to support rail growth, including:
- Financial penalties for inefficient railcar use: Seyfert urged the STB to adopt rules allowing rail customers to impose financial penalties on railroads for inefficient use of private railcars.
- Reciprocal switching to enhance competition: NGFA called for the continued development of reciprocal switching rules to increase rail competition.
- Defining the common carrier obligation: Seyfert recommended establishing a clear regulatory framework that industry participants can rely on.
He also highlighted the growing opportunities for freight rail linked to domestic grain processing, with new grain facilities being built alongside rail spurs. However, Seyfert warned of increasing global competition, particularly from Brazil and Russia, whose grain production has surged over the last decade.
“I believe there will be opportunities for rail carriers and the grain industry to continue partnering to export more grain,” Seyfert concluded.
His testimony was delivered during the STB’s "Growth in the Freight Rail Industry" hearing held on September 17.
