This worrying development comes according to "an agricultural association and sources at two grain cooperatives" who spoke to Reuters about the emerging threat to exports and domestic deliveries.
As Reuters explains, the timing of the looming strike is making the situation even worse. "With farmers starting to harvest autumn crops that are shipped to meat and biofuels producers, the shipping disruptions could add to already high inflation," something that was already shown to be increasing in this week's inflation reports measuring August costs. "Farmers also plan to add fertilizer to fields after the harvest, and shipments of fertilizer are being delayed," another ripple effect that would make even a short rail shutdown a significant crisis with lasting impacts.
So not only will a rail strike that brings America's rail system to a grinding halt be detrimental in the short term, it could slash supply and add more inflationary pressure to the economy while preventing farmers from doing the necessary preparation work for next spring's plantings.
In addition, as Reuters explained, much of U.S. agriculture depends on rail:
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