Railroad Strike Could Hurt Ethanol Production

Statewide Iowa — In one week there may or may not be a railroad strike, depending on the outcome of legislation regarding the demands of the railroad workers.

Brian Jennings, Chief Executive Officer of the American Coalition for Ethanol, told KIWA that about 70-75% of all ethanol that is produced in the US moves from the ethanol facilities to its destination by railroad. That means if there is a railroad strike it won’t just affect the production of ethanol.

Jennings says that the farmers wouldn’t be able to deliver corn. And the ethanol facilities, livestock feeders who depend on the distiller’s grains, retailers, and the people who fill up at the pump with ethanol blends will all be impacted. He says it would be like a domino effect.

Jennings tells us that the American Coalition for Ethanol is urging Congress to vote for a measure designed to avert a strike on the railroad.

He says the goal of Congress should be to keep this strike from happening, as it is the heart of ethanol production.

Jennings says with the support from Congress, the railroad strike should not happen, which will avoid issues with ethanol transportation.

Update: On Wednesday, the US House voted to pass the bill designed to avert the railroad strike. For more information visit https://www.house.gov/.





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