The U.S. Department of Agriculture's Grain Transportation Report reported that BNSF Railway announced significant cuts to soybean rail tariff rates for southern destinations while maintaining current rates to Pacific Northwest export terminals for the 2025/26 marketing year beginning in September.
The railway will reduce rates for shipments to Texas Gulf export terminals by $1,500 per railcar ($0.41 per bushel), representing a 25% reduction for the average elevator on BNSF’s network. Shipments to U.S.-Mexico border crossings at Eagle Pass and El Paso, Texas, will see a $1,000 per car ($0.27 per bushel) reduction.
Rates to Pacific Northwest export terminals, traditionally the largest destination for BNSF soybean shipments, will remain unchanged after being reduced by $150 per car last year.
These adjustments will create significant shifts in the tariff rate spreads between destinations. After the changes take effect, all elevators on BNSF’s network will have lower rates to Mexico than to the Pacific Northwest, with spreads ranging from $200 to $2,300 per car depending on origin location.
The rate changes likely reflect shifting soybean demand patterns. USDA projects record domestic soybean crushing of 69.1 million metric tons in 2025/26 as more soybeans are processed for biofuels rather than exported. Total U.S. soybean exports are forecast to decline to 47.5 million metric tons, down from 50.8 million in 2024/25.
Mexico has emerged as the largest known buyer for 2025/26 U.S. soybeans with 1.1 million metric tons in early sales, while China — typically the largest purchaser — has yet to book its first sales for the upcoming marketing year.
The Texas Gulf, which accounted for just 1% of U.S. soybean export inspections in 2024, may see increased volumes following BNSF’s substantial rate reductions to that region.
