Grain bins overflow amid rail car dearth
TOLEDO (AP) -- Grain bins are filling up fast in the northwest corner of the state because elevator operators say they're having trouble getting enough rail cars to move out their soybeans and corn.
"We're using some old storage tanks that we haven't used in years," said H.D. Roe, general manager of Northern Ohio Grain Co-Op in Weston.
The shortage of rail cars hasn't hit the entire state, but things may get tighter as harvest picks up.
Contributing factors
Elevator operators blame the railroads for not delivering enough grain hauling cars. "It's something they constantly battle," said Brian Peach, secretary/treasurer of Ohio AgriBusiness Association, which represents elevator operators.
It has been this way for about the past five years, Peach said.
A year ago, elevators across the farm belt were near capacity after a record crop and had trouble moving grain. This year's crop isn't as big, but there is still a struggle to get rail cars.
Other farm states have been facing shortages too.
Elevator managers and farmers in places such as South Dakota and Kansas are still moving out grain from last year's harvest, increasing demand for rail cars.
Peach said railroads no longer see farmers as a high priority.
"We are not a major customer anymore like we used to be," he said. "There are fewer elevators on rail lines."
Rail is in extremely high demand this year because more imported products are being shipped by rail, and prices for truck shipments have increased, said Kim Skorniak, a spokeswoman for CSX Corp., one of the major railroad operators in Ohio.
Demand for grain hauling cars is always high in the fall, she said.
"There will always be somewhat of a shortage because there's a big demand in a short amount of time," she said.
Coping
Some elevators in northwest Ohio are so full that they are storing grain on the ground -- a move of last resort because the corn and beans can suffer insect and mold damage.
About 400,000 bushels have been piled outside an elevator in Custar. "It's either dump it on the ground or they go elsewhere," said Randy Tietjge, grain merchandiser at Deshler Farmers Elevator Co., which operates three grain storage sites south of Toledo.
One train expected on Oct. 10 arrived 10 days late, he said. Still, he feels fortunate that the company has been able to load four trains in the last week.
"They're coming just in the nick of time," he said. "Most places are really hurting."
Northern Ohio Grain Co-Op expected to move out 100,000 bushels of grain this month. Instead, it's only been able to ship out 20,000 bushels, Roe said.
That's because they can get only one rail car at a time when they are supposed to get 15, he said. "We can't depend on the railroad," Roe said. "Everybody is in the same boat."
Country Star Co-Op in Galion was full Monday, forcing it to send away farmers who wanted to drop off their crops until a train arrived Wednesday morning, said Mike Oehlhof, a branch manager.
He expects the next few weeks to be even worse as far as getting shipments out. "There's a lot of corn to come off yet," he said.