May 12, 2016 at 10:11 AM CST
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http://www.kxnet.com/story/31955501/profits-for-shipping-grain-are-down
But since commodity prices dropped the agriculture sector has been struggling . Oil prices fell and the U.S dollar became stronger making it harder for the agriculture industry to compete globally. At the height of the oil boom grain prices were higher. Prices right now are below the price of production for the farmer, making it less profitable to move grain.
Southwest Grain's Jim Bobb says farmers are waiting to move their grain..
The BNSF Railway company recently reduced grain $100 per rail car, but Bobb says that isn't enough.
The fallen commodity prices has also sent farmers back to the drawing board when it comes to budgeting for this growing season. "Many of them have reduced their cost structures as much as they can" says Bobb. Bobb says there is going to have to be some changes.
He says it's either going to take a softened dollar or a dramatic change in weather to increase the demand for grain. |