Feed users in California and the Southwest are having issues sourcing grain, with some reporting they are paying $3 over the CBOT price to secure grain by truck. Not only are feed users on the brink of running out of grain, but there are also concerns the rail issues could grow worse during harvest this fall.

The National Grain and Feed Association (NGFA) says their members have been seeing issues since late winter and early spring, which then caused the Surface Transportation Board (STB) to hold a hearing in August. While the industry thought the issues would improve by summer, labor issues are not getting better. 

"What I'm hearing from our members is fewer equipment issues and that the equipment and engines seem to be not breaking down, but the train times -  the amount of time it's taking to get the trains - and the reliability of receiving them is still quite a problem in in quite a few areas of the country," says Mike Seyfert, President and CEO of NGFA.