Agriculture groups and elected officials who were sounding the alarm after the Department of Homeland Security, without warning, closed two of the six key rail crossings into Mexico on Dec. 17, breathed a sigh of relief on Dec. 22.
The abrupt closure of the El Paso and Eagle Pass rail crossing left 10,000 railcars stranded and could have held up millions of tons of agricultural products to the United States’ leading ag export destination.
The Associated Press speculated that the closure might have happened to free up overwhelmed Customs and Border Patrol agents to handle increased surges of illegal migrants. In recent days, more than 10,000 illegal migrants a day have been crossing the border, and the contentious issue plays a big part in election-year politics.
Kansas Sen. Roger Marshall, a Republican member of the Senate Agriculture Committee, was critical of President Joe Biden and the DHS Secretary, Alejandro Mayorkas, for the closure and issued a statement after the crossing re-opened.
“Monday’s ill-advised decision left millions of dollars of goods, many from Kansas, stranded on the tracks right before Christmas. We immediately started demanding answers from CBP and explaining the ripple effect of this decision on international commerce. We shared the stories we were hearing from our Kansas agriculture, rail, and automotive industries about the detrimental impact the railroad closure was having on their bottom line. I am glad the Biden administration now understands that you can’t close down major rail routes overnight—but I do remain very concerned that international commerce and many people’s livelihoods in rural America was an afterthought to this Administration.”
U.S. Wheat Associates and the National Association of Wheat Growers were pleased that the U.S. Customs and Border Protection agency reopened rail crossings in El Paso and Eagle Point. Mexico is historically the top export market for U.S. wheat, with average annual commercial sales of almost 132 million bushels.
“These rail corridors are essential gateways to many loyal flour millers and their wheat food customers in Mexico who rely on the interconnected U.S. and Mexican rail system for a reliable source of high-quality U.S. wheat. Even short disruptions in this system can have significant negative effects on both sides of the border.
“We trust CBP will take the steps needed to avoid rail closures in the future, and we are grateful for their efforts to maintain border security and facilitate lawful trade.”
A substantial volume of U.S. wheat is shipped by rail every year and it is estimated that at least 13 million bushels of wheat, valued at more than $114 million, per year moves through the rail corridors at the El Paso and Eagle Pass crossings that are now closed. Mexican customers use rail to import U.S. wheat from as far away as the Northern Plains and loaded trains are currently waiting to move.
Mike Steenhoek, executive director of the Soy Transportation Coalition, noted the importance of soybean industry to Mexico.
“In 2022, $3.64 billion of U.S. soybeans were exported to Mexico (No. 2 market), $863 million of U.S. soybean meal was exported to Mexico No. 2 market), and $117 million of U.S soybean oil was exported to Mexico (No. 4 market), according to the U.S. Department of Agriculture). The vast majority of those shipments occur via rail.”
The announcement pleased leaders at the National Corn Growers Association, who cautioned the agency against making similar decisions in the future.
“This is certainly a welcome relief,” said NCGA President Harold Wolle. “We are very appreciative that CBP was responsive to our calls to have the border crossings re-opened, but we hope this experience serves as a cautionary tale moving forward. Rail is a key mode of transportation for our exports into Mexico, so closing rail crossings can have devastating ramifications for farmers and the economy.”
The National Grain and Feed Association and the North America Export Grain Association was pleased, too, and noted the North American agricultural supply chain is deeply integrated. Any closure of crossings into Mexico is unacceptable and significantly impacts the flow of grain and oilseeds for both human and livestock feed to one of the United States’ most important export markets and trading partners, the entities said. “We call on the governments of the United States and Mexico to continue to dialogue and to put in place measures on both sides of the border to ensure this does not happen again. The free flow of trade across the border is critical to food security for our countries and the region at large. A plan must be in place to keep the border open to commerce between our nations. “NGFA and NAEGA are particularly appreciative of USDA Secretary Tom Vilsack and members of Congress on both sides of the aisle for their unwavering support and tireless efforts to convince the Department of Homeland Security and CBP of the importance of reopening these crossings to agriculture trade between the United States and Mexico.”
David Murray can be reached at [email protected].
