Farm groups across North America are calling on Canadian Prime Minister Justin Trudeau to intervene in a potential railroad worker strike that could severely disrupt the agricultural supply chain.
With the Canadian harvest season in full swing, the groups say that a work stoppage could have dire consequences for both Canadian and American farmers.
The concerns stem from the looming possibility of a strike or lockout by nearly 10,000 workers represented by the Teamsters Union, who are employed by Canada’s two largest railroads: Canadian National Railway Company and CPKC. If the rail networks come to a halt, the impact on agricultural operations could be devastating.
In a letter sent Monday to Trudeau, farm groups emphasized the importance of uninterrupted rail service for transporting essential goods like grain, fertilizer, and livestock feed across North America. The letter highlights that agriculture ships more than 25,000 rail cars per week, a volume that would drop to zero during a strike or lockout, particularly during the critical harvest period.
“Trucking is not a viable option for many agricultural shippers due to their high-volume needs and the long distances involved,” the letter states. The groups warn that a rail stoppage would lead to shutdowns or slowdowns of rail-dependent facilities, causing a ripple effect that would harm both domestic and global food security.
The American Farm Bureau Federation, one of the signatories of the letter, said it is closely monitoring the situation. Joe Gilson, the AFBF’s director of government affairs, emphasized the wide-reaching implications of a rail stoppage, noting that Canada produces about 12 percent of the world’s fertilizer and is a major exporter of grain.
The letter also underscores the integrated nature of the North American supply chain, where operational railroads are essential on both sides of the border. A disruption in rail service could lead to increased costs, delayed shipments, and lost sales, ultimately affecting consumers with higher grocery prices.
Farm groups are urging the Canadian government to act swiftly to prevent a strike or lockout and to ensure that negotiations between the railroads and the union continue. “While we believe a negotiated solution is always the preferred outcome, your government should be prepared to move quickly if negotiations fail,” the letter concludes.
With the deadline for an agreement approaching on August 22, the agricultural community remains on high alert, hoping for a resolution that will keep the rails and their livelihoods running smoothly.
