CF Industries Holding, Inc., warned that “railroad-mandated shipping reductions” would reduce the shipments of critical fertilizers to Iowa, Illinois, Kansas, Nebraska, Texas and California.
This warning came after Union Pacific told many shippers that they had to reduce the number of private cars on its railroad by 20%.
“The timing of this action by Union Pacific could not come at a worse time for farmers,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “Not only will fertilizer be delayed by these shipping restrictions, but additional fertilizer needed to complete spring applications may be unable to reach farmers at all. By placing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ harvests and increasing the cost of food for consumers.”
This comes at a time when American and European sanctions on Russia are already reducing the world’s supply of wheat, fertilizer, oil, natural gas, as well as critical industrial gases and metals.
Reducing shipments of fertilizers will add to increased upward pressure on agricultural commodities as well as retail food prices.