Managing the flow of grain—and information

Later this month we will celebrate Thanksgiving. It’s a time to be grateful for what we have and celebrate the simple things: family, friends, health and happiness. In a busy world, this is much easier said than done. While technology is providing unlimited “easy buttons,” we must recognize they can rarely be used to improve the things that matter most in life. 

It’s a different message when we look at how we approach efficiencies in our operations. Advancement of technology in agriculture continues to deliver transformational change. Artificial intelligence is accessing vast data collections to provide timely solutions—usually within seconds. We will continue to invest in the technologies that bring value to our members. 

I’ve always taken pride in writing the Viewpoint. Over the past nine years, there have only been a handful that had a ghost writer. This month, I decided to use new technology (ChatGPT) to generate information on the state of grain movement and the record fall harvest. Within a few seconds I had the following:

In Fall 2024, U.S. farmers are grappling with a record-breaking soybean and corn harvest, but moving these massive yields is proving to be a nightmare. Early reports estimate production of over 4.5 billion bushels of soybeans and a staggering 15 billion bushels of corn. While it brings financial hope to farmers, storage shortages, supply chain disruptions and transportation bottlenecks threaten to turn this year’s abundance into a logistical crisis.

One of the biggest challenges is the strain on transportation networks, particularly rail and trucking. With a shortage of labor, particularly drivers, transporting these crops to processing facilities and export terminals has become both costly and slow. The rail network, already stretched thin by the demands of other industries, is struggling to meet the increased demand for grain transportation. Congestion on major routes has led to significant delays, leaving many farmers with crops piling up on their farms or in temporary storage.

Export markets, traditionally a pressure valve for excess U.S. production, are facing their own hurdles. Ports on the Gulf Coast and Pacific Northwest are experiencing congestion, and global demand for U.S. grain has softened due to increased competition from countries such as Brazil, which is also reporting a strong harvest this year.

On the financial side, the logistical difficulties are hitting farmers’ bottom lines. Delays in moving grain to market are keeping cash flow tied up, while higher transportation costs are eating into profit margins. Government aid programs, typically geared toward price supports or disaster relief, have been slow to adapt to the evolving logistics crisis.

“Storage shortages, supply chain disruptions and transportation bottlenecks threaten to turn this year’s abundance into a logistical crisis.”

The industry is calling for intervention, including improving infrastructure, and incentivizing the trucking and rail sectors to prioritize grain shipments. Without these measures, the record 2024 harvest could result in significant losses despite its initial promise.

That’s a good summary of what many of you have experienced this fall, and a testament to the progress of artificial intelligence. One thing not addressed is the added pressure to the system from last year’s crop moved from the farm in August and early September. The elevators, terminals and processors are working hard to find a spot for your grain. 

This Thanksgiving let’s be thankful for the many blessings we have and the opportunities we enjoy in this country. 

READ MORE FROM THIS ISSUE OF TODAY'S FARMER MAGAZINE HERE.

SEE THIS ARTICLE IN IT'S ORIGINAL FORM VIA FLIP BOOK HERE.