Category: Transportation

TFI: WRDA Reauthorization and Cost-Share Update will Spur Needed Development

Arlington, VA – The Fertilizer Institute (TFI) applauds Congress for passing the Water Resources Development Act (WRDA) of 2024, a key piece of legislation related to our nation’s water infrastructure, and for updating the cost-share structure to bring more general revenue dollars towards inland waterway projects.

“Our nation’s transportation infrastructure is critical to agriculture and rural America’s competitive advantage in world markets, and WRDA provides vital support for that network,” said TFI President and CEO Corey Rosenbusch. “WRDA is the foundation for the modernization of our nation’s inland waterways and ports, which are an integral component of the fertilizer distribution system.”

Of particular importance, this year’s WRDA reauthorization updates the cost-share structure for inland waterway lock and dam construction projects so that 75% of funding will now come from the general fund with the remaining 25% coming from the Inland Waterways Trust Fund. The previous 65% – 35% split artificially limited the funding Congress could provide to these projects each year, and with the change an additional $1.4 billion in funding could be available over a ten-year period.

“Increasing the general fund portion of the cost-share structure will promote much needed investment for inland navigation projects, as well as provide confidence to industry that much needed maintenance and modernization of our inland waterway system will happen,” Rosenbusch explained. “On a ton-mile basis, approximately one-fourth of fertilizer moves on the inland barge system and these projects are absolutely critical to the safe and efficient distribution of fertilizers.”

Rosenbusch noted that addressing the maintenance backlog, estimated at billions of dollars, is an investment in our nation’s future, saying that well-maintained waterways enable the fertilizer industry to transport goods quickly and reliably, ensuring farmers receive supplies on time.

“Delays caused by outdated components of the system are not only disastrous for the farmers who receive much of the almost 70 million tons of fertilizer each year via our nation’s waterways, they can also raise the prices of everyday goods and food for consumers,” Rosenbusch concluded. “The fertilizer industry appreciates the bipartisan work of Congressional leaders that have made modernization of our inland waterways a priority.”

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

Port Strikes and Fertilizer: Navigating Disruptions to Keep Farms Growing

Port of New Orleans

Fertilizer doesn’t just magically appear on farms. It’s part of a global marketplace that requires precise planning, year-round logistics, and a highly complex system behind the scenes. This system ensures that farmers have the nutrients they need, exactly when and where they are needed. A critical component of that system? Ports and harbors.

Let’s explore why ports like Tampa, New Orleans, and Houston are vital for the fertilizer supply chain, and how recent disruptions could have ripple effects across the agriculture sector.

Why Ports Matter for Fertilizer

Fertilizer is a global commodity. It’s bought, sold, and shipped around the world to reach farmers at the optimal time. Some of the most important ports for fertilizer in the U.S. are located along the East and Gulf Coasts. For instance, did you know that 70% of fertilizer imports into the region pass through New Orleans? Similarly, Tampa handles over half of the region’s fertilizer exports, making it another crucial hub.

When these ports operate smoothly, the fertilizer supply chain flows without disruption. But when they don’t, the consequences can be felt far beyond the docks. Farmers rely on these shipments to grow the crops that feed us all, so even a short delay at the port can snowball into much larger problems.

The Impact of the Port Strike

A recent strike affecting over a dozen U.S. ports has sparked serious concern across the fertilizer industry. While the strike primarily targets container and roll-on/roll-off terminals (which handle cars, trucks, and other large cargo), it hasn’t left the fertilizer industry untouched. Fertilizer is usually shipped in bulk—a method where large amounts are loaded directly into ships’ holds—so bulk terminals have mostly been spared from the disruptions.

However, a rising trend complicates things: the growing use of containers to ship fertilizer and other agricultural inputs. This shift means that the strike could now impact a greater portion of the fertilizer supply chain than before. Additionally, this is the first strike impacting East and Gulf coast ports in decades, so the full scope of impacts to the supply chain are unknown, including if the stoppage will cause delays in getting these essential nutrients to farmers.

Fertilizer’s Global Journey

It’s important to remember that fertilizer isn’t just a U.S. product; it’s part of an interconnected global marketplace. The raw materials used to produce fertilizer are sourced from countries like Canada, Russia, and Morocco. Once purchased, these products travel across oceans to key U.S. ports, such as those in New Orleans or Tampa. From there, they’re unloaded and distributed to farms across the country.

The fertilizer that helps crops grow in Iowa or Ohio could have traveled thousands of miles to get there, passing through ports, railways, and highways. Any disruption at a port can create delays that reverberate through the entire supply chain.

Why a Quick Resolution Is Needed

Fertilizer isn’t just needed once per year—it’s required year-round. While planting season is a particularly crucial time, farmers must plan well in advance to ensure they have the right fertilizer to boost yields and maintain soil health. Timing of these applications is also critical to prevent runoff into waterways and loss of the nutrients by farmers resulting in smaller crop yields.

Prolonged port disruptions could leave farmers without the fertilizer they need when they need to apply it. If shipments are delayed, it can lower crop yields, leading to everything from higher food prices to shortages of essential agricultural products. While fertilizer companies have taken steps – like prepurchasing and prepositioning – to mitigate effects from a port shutdown, resolving the current port strike as quickly as possible remains critical.

Wrapping Up

A swift resolution to the ongoing port strike is essential to ensure that farmers receive the nutrients they need to feed the nation—and the world. Both sides in the dispute need to return to the negotiating table to find a resolution. If negotiations falter, it may be time for the White House to intervene and help reopen the ports, keeping the fertilizer supply chain flowing.

The Fertilizer Institute Calls for More Customer Focus from Rail Industry

Arlington, VA – The Fertilizer Institute (TFI) today provided testimony to the Surface Transportation Board (STB) emphasizing the ongoing need for the freight rail industry to shift its focus toward customer service and growth. The fertilizer industry has long relied on rail service for the efficient and safe transport of its products but has struggled with declining service quality, increasing rates, and a lack of attention to customer needs.

“The fertilizer industry is heavily reliant on rail and cannot afford to see continued stagnation in freight rail service,” said TFI vice president of government affairs Ryan Bowley. “Unfortunately, we’ve seen freight volumes plateau, services decline, and rates skyrocket.”

TFI’s testimony comes at a pivotal time for the Class I railroads that make up the backbone of the nation’s freight rail system. The STB’s inquiry into the rail industry’s growth potential highlights a disturbing trend: freight rail carloads have been in decline since 2008, while trucking and other transportation sectors have consistently expanded their capacity.

Bowley also pointed to data showing that while rail employment has dropped and carloads have declined, rail rates have surged. Between 2005 and 2017, rates for transporting critical farm inputs like anhydrous ammonia increased by over 200%. Such price hikes, combined with inconsistent service, have made it difficult for fertilizer companies to meet the just-in-time delivery demands of farmers across the country.

“These rising costs and service failures are particularly troubling for industries like ours, which depend on rail to move bulk products safely,” Bowley continued. “Our members regularly face delays, held shipments, and escalating rates, often without any recourse. It’s clear that a new approach is needed.”

In its testimony, TFI highlighted the need for the rail industry to pivot toward a customer-focused, growth-driven model that balances profitability with service quality. The industry’s  adoption of “Precision-Scheduled Railroading” (PSR) led to deep cuts in staff and equipment, further exacerbating service issues.

TFI’s testimony also praised recent moves by the STB to increase oversight of rail service and pricing, including the implementation of faster emergency service orders while stressing the importance of additional reforms such as expanding access to reciprocal switching, a policy that would allow shippers to switch between competing rail carriers more easily.

“The rail industry should be actively competing for freight, not relying on captive customers to drive revenue,” Bowley concluded. “We need a system where railroads aren’t just collecting more revenue from a shrinking base but are growing their business by serving more customers with better service.”

TFI’s testimony can be read in full here.

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Applauds Canadian Rail Resolution

Arlington, VA – The Fertilizer Institute (TFI) today released the below media statement in response to the Canadian government ordering binding arbitration in the labor dispute between Teamsters Canada and the CN and CPKC railroads:

“TFI applauds the Canadian government’s efforts to take action to get the rail system moving again as quickly as possible. The economies of Canada and the United States are closely intertwined, and a dependable and reliable rail network is necessary to support the cross-border fertilizer supply chain and facilitate the movement of critical agricultural inputs on both sides of the border. We also thank US government officials for their engagement with both the industry and their counterparts in Canada. TFI looks forward to continuing to work with policymakers on strengthening supply chains and domestic fertilizer supply and production.”

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TFI: Canadian Rail Stoppage Resolution Critical

Arlington, VA – The Fertilizer Institute (TFI) today continued to push for a resolution to the rail stoppage in Canada after Thursday saw the shutdown of Canada’s rail networks saying that the impacts from even a short stoppage could have significant and long-lasting consequences.

“Rail transport is the backbone of North America’s supply chain, and fertilizer and agriculture are among the most dependent on rail service,” said TFI President and CEO Corey Rosenbusch, noting that the ripple effect will extend to the entire agricultural industry. “The interconnected and time-specific nature of agriculture means that even short-term disruptions to one segment have wide-ranging implications, affecting everything from grocery store prices to international trade.”

Fertilizers are critical inputs that must reach farmers at specific times during the year to ensure a successful harvest. Canada is the world’s largest producer and the U.S.’s main supplier of potash, a vital potassium-rich mineral used in fertilizers; Canada is also crucial in meeting nitrogen fertilizer needs across the Northern Plains. Ninety percent of U.S. fertilizer imports from Canada arrived by rail, and rail is the primary mode of transportation in moving potash from Canadian mines to ports for export around the globe.

TFI and 34 other U.S. agriculture industry associations wrote leaders on both sides of the border earlier this week urging intervention to avoid disruptions to the cross-border supply chain.

“Given the potential for widespread disruption, it is imperative that Canadian authorities act swiftly to resolve any rail stoppages as the agricultural sector and consumers in both Canada and the United States cannot afford prolonged uncertainty,” Rosenbusch continued. “U.S. policymakers also must recognize the seriousness of this issue and urge Canada to prioritize negotiations and find a resolution quickly.”

The rail shutdown in Canada also highlights the glaring oversight of not including potash on the U.S. Geological Survey’s (USGS) Critical Minerals list.

“The argument against including potash as a critical mineral hinges on the fact that most of the U.S. supply comes from Canada, a stable and reliable trading partner. However, a Canadian rail stoppage shatters this notion, revealing just how vulnerable the U.S. is to disruptions in its potash supply chain,” Rosenbusch explained. “Potash undoubtedly fits the definition of a mineral with a supply chain vulnerable to disruption and essential to our nation’s economy and national security.”

The Canadian rail shutdown exposed additional vulnerabilities in the U.S. supply chain and underscores the need for a more robust strategy to protect essential agricultural inputs.

“Food security is national security, and protecting the supply chain of essential agricultural products like potash is critical to the wellbeing of both nations,” concluded Rosenbusch. “Action must be taken now to ensure that our food systems remain resilient and capable of withstanding future challenges.”

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

The Vital Role of WRDA: How Inland Waterways Support the Fertilizer Industry and Your Dinner Table

We’re diving into a topic that might not always grab the headlines but is crucial for a steady food supply: the Water Resources Development Act (WRDA). This legislation, along with our inland waterways, plays a key role in supporting the fertilizer industry and agriculture.

What is WRDA?

The Water Resources Development Act (WRDA) is pivotal U.S. legislation that authorizes and prioritizes water resource projects, including dams, levees, ports, and inland waterways. WRDA ensures that the US Army Corps of Engineers has the appropriate direction for maintaining and improving our waterway infrastructure, preventing disruptions, and supporting the agricultural industry by facilitating efficient transportation of goods like fertilizers.

Why Inland Waterways Matter

Inland waterways are the hidden highways of our transportation network, essential for moving goods smoothly across the country. For the fertilizer industry, these waterways are vital. Fertilizers are bulky and heavy, making water transport efficient and cost-effective. Regular Congressional action on WRDA bills keeps this infrastructure in top shape, ensuring fertilizers and other essentials reach farmers efficiently.

Investing in water infrastructure through WRDA isn’t just about maintaining old systems—it’s about making them more efficient and reliable. This often includes the construction of whole new lock facilities to meet modern requirements. This means smoother transport, lower costs for producers and consumers, and a stronger, more resilient economy.

The Case for Investing in Waterway Infrastructure

Many locks and dams in the U.S. are over 90 years old, some dating back to the 1930s. This aging infrastructure urgently needs maintenance and upgrades to prevent significant delays and disruptions. Portions of the inland waterway network in poor condition act as bottlenecks due to the need for unscheduled maintenance, with each day of delay depriving crops of essential nutrients, resulting in lower yields and higher costs, which can lead to higher prices for consumers. Many of our oldest locks are only half the size needed for modern tug and barge traffic.

Investing in waterway infrastructure is crucial for efficiency, safety, and economic stability. Upgrading our lock and dam systems ensures smoother, more reliable transportation, reduces costs, and enhances economic stability. WRDA plays a critical role by prioritizing essential maintenance and upgrades, transforming old systems into efficient networks.

Key WRDA Legislative Support and Benefits

TFI supports the enactment of a final WRDA bill before the end of 2024. Thankfully, both the Senate and House have passed their versions of the legislation. TFI is especially supportive of a provision advanced by the Senate which would propose changing the cost-share for waterway projects from the current 65% general revenues/35% Inland Waterways Trust Fund (IWTF) split to 75% general revenues/25% IWTF. Bringing more general revenue dollars towards inland waterway projects accelerates funding for critical construction and rehab projects, saving taxpayers money and speeding up project completion.

Addressing the maintenance backlog, estimated at billions of dollars, is an investment in our future. Well-maintained waterways enable the fertilizer industry to transport goods quickly and reliably, ensuring farmers receive supplies on time. This leads to better crop yields and stable food prices.

Positive Consequences of WRDA Reauthorization

Recent progress in advancing the WRDA bills has been remarkable, with strong bipartisan support in both the Senate and the House. The Senate’s bill even received unanimous approval, showcasing a unified commitment to enhancing our water infrastructure. This legislative progress promises a brighter future for our waterways and the agricultural sector.

With the right policies in place, WRDA reauthorization ensures:

  1. Efficient Transport: Fertilizer moves smoothly along well-maintained waterways.
  2. Timely Delivery: Farmers receive the fertilizer they need without costly delays.
  3. Healthy Crops: Proper nutrients from fertilizer promote healthy crop growth and high yields.
  4. Stable Prices: Higher yields mean more supply, helping to stabilize food prices.
  5. Happy Consumers: Enjoy your favorite foods without breaking the bank.

Let’s Wrap It Up

WRDA and our inland waterways are critical components of the fertilizer industry’s supply chain. Investing in this infrastructure ensures that farmers get the supplies they need, crops grow efficiently, and food prices remain stable. So, next time you enjoy a fresh salad or a hearty bowl of pasta, take a moment to appreciate the complex system that helps get that food from the farm to your table. It’s all connected, and it all starts with smart investments in our waterway infrastructure. By supporting these efforts, we can keep our food system strong, our economy stable, and our communities thriving.

Tune in to the Fertilizer 101 Podcast for Episode 1: Fertilizer & Railway Safety

Ever wonder how the fruits, veggies, and grains that feed our nation get the nutrients they need? The answer lies in fertilizers. But have you thought about how these crucial substances get to where they’re needed safely and efficiently? This week on the Fertilizer 101 Podcast, we’re shifting tracks to focus on an issue that impacts us all: Railway Safety.

Episode 1: Fertilizer & Railway Safety

Why Should You Care?

Railways are the veins that connect the heart of our agricultural centers to the rest of the country. Safe transport of fertilizer isn’t just a farmer’s concern—it affects us all!

What’s on the Agenda?

  • The importance of regulations for transporting potentially hazardous materials
  • The safety measures taken to ensure railway safety
  • Regulations and innovations we can expect for the future

Don’t let this train of knowledge pass you by! Listen to Fertilizer 101, and get on board with railway safety today!

TFI Welcomes STB’s Proposed Rule on Reciprocal Switching

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today praised the unanimous decision by the Surface Transportation Board (STB) to issue a Notice of Proposed Rulemaking (NPRM) on providing rail customers access to reciprocal switching as a remedy for poor rail service.

“TFI has long advocated for reforms such as reciprocal switching to promote competition and enhance rail service. Market-based incentives will encourage rail carriers to be more customer-oriented,” Rosenbusch said. “The unanimous, bipartisan vote is a clear acknowledgement by the STB that these challenges must be addressed.”  

The proposal from the STB would provide a streamlined path for rail customers to obtain a reciprocal switching order by including specific, objective, and measurable criteria for determining if they are eligible. That criterion includes measures of service reliability, service consistency, and adequacy of local service. The proposal would also standardize these three service metrics across all Class 1 carriers for the first time.

“Over 60% of fertilizer moves by rail and is therefore critical to the on-time delivery of fertilizer to farmers exactly where and when they need it,” concluded Rosenbusch. “We thank Chairman Oberman and all of the Board Members for their efforts to improve rail service. TFI looks forward to participating in the comment process and enactment of this important reform.”

 

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Welcomes STB’s Proposed Rule on Reciprocal Switching

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today praised the unanimous decision by the Surface Transportation Board (STB) to issue a Notice of Proposed Rulemaking (NPRM) on providing rail customers access to reciprocal switching as a remedy for poor rail service.

“TFI has long advocated for reforms such as reciprocal switching to promote competition and enhance rail service. Market-based incentives will encourage rail carriers to be more customer-oriented,” Rosenbusch said. “The unanimous, bipartisan vote is a clear acknowledgement by the STB that these challenges must be addressed.”  

The proposal from the STB would provide a streamlined path for rail customers to obtain a reciprocal switching order by including specific, objective, and measurable criteria for determining if they are eligible. That criterion includes measures of service reliability, service consistency, and adequacy of local service. The proposal would also standardize these three service metrics across all Class 1 carriers for the first time.

“Over 60% of fertilizer moves by rail and is therefore critical to the on-time delivery of fertilizer to farmers exactly where and when they need it,” concluded Rosenbusch. “We thank Chairman Oberman and all of the Board Members for their efforts to improve rail service. TFI looks forward to participating in the comment process and enactment of this important reform.”

 

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.