Fall Fertilizer Transportation Could Be At Risk With Possible Rail Stoppage

Failure by Congress to extend the deadline for the implementation of Positive Train Control (PTC) on the railroads could gridlock fall ammonia transportation and have corresponding negative impacts on agriculture and the economy. The following information from The Fertilizer Institute (TFI) provides the latest news on this issue including activity by Congress, agriculture organizations, and the business community.

  • A service stoppage would force fertilizer manufacturers to curtail or cease production. Manufacturers have only limited storage capacity at their facilities, and therefore must ship anhydrous ammonia and other products year-round to continue production. Without access to rail transportation, on-site storage would quickly reach capacity. Because ammonia facilities typically operate at full capacity, these production losses cannot be made up at a later date, and could result in nationwide shortages of crop nutrients.
  • What makes this issue so urgent is statements made by rail carriers just this month that, absent a PTC deadline extension, they will not ship certain materials – including anhydrous ammonia – on lines where PTC technology is not yet implemented. Anhydrous ammonia is the most cost efficient source of nitrogen.
  • A letter was recently sent by TFI and 39 other agriculture organizations (16 national associations and regional agriculture organizations representing 27 states – from Maryland to California) to House Leadership (John Boehner, Nancy Pelosi, Mitch McConnell and Harry Reid) urging Congress to pass PTC extension legislation no later than October 31.
  • Just yesterday, the House Transportation and Infrastructure Committee leadership introduced PTC Extension legislation – H.R. 3651, the Positive Train Control Enforcement and Implementation Act.  TFI is urging farmers and others in the agriculture community to call or write their elected representatives ASAP.
  • TFI urges everyone who would be impacted to call their Congressman at 202-225-3121 to urge speedy adoption of PTC extension legislation. Farmers, retailers, and others in the agriculture community can also easily write their congressman using a customizable letter that can be found on the TFI Website.
  • The infographic below gives further details about the economic consequences of a rail shutdown.

PTC Rail Shutdown by the Numbers infographic

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