The downstream effects of the North Dakota oil boom and federal regulations.
The bottom line of many of the state’s companies is being affected by a shortage in rail cars and train crews, Ben Brancel, secretary of the state Department of Agriculture, Trade and Consumer Protection told the Wisconsin State Journal. The demand for shipping via rail has skyrocketed in recent years due to an increase in hydraulic fracturing, also known as fracking.
Canada-based railways that serve Wisconsin have pulled cars out of the state to avoid federal fines due to a weekly requirement of Canadian-grown grain shipments, according to Brancel.
“Those railroads are moving cars and their locomotives out of the U.S. and into Canada so they don’t get the penalties, and it puts us even shorter,” he said. “It’s a long-term strategy that we in North America must work on. Decisions they make in Canada impact us and our ability to move products.”