2022 Fall Farm Outlook

2022 Fall Farm Outlook Lincoln Daily News Oct 2022 Page 23 seem to be an ongoing discussion on a daily basis. But for the strike to actually occur is much less likely. In the rail industry the last strike was 30 years ago and there have surely been numerous negotiations since that time that did not yield a shutdown of transportation and consequently much of the economy. But that does not prevent John Q Public from being concerned and it does not stop the markets from reacting. In September the Editorial Board of the Washington Post published the following opinion: “Given chronic partisan dysfunction on Capitol Hill, leaving Congress to resolve the matter was an iffy bet. Americans, already weary of pandemic-era shortages of baby formula and countless other products, would be rightly furious at further supply-chain chaos, which could wreak havoc with the delivery of consumer goods, agricultural products and even supplies of chlorine required to treat drinking water. Fears of shortages sent futures prices soaring for an array of commodities, including grain, as well as natural gas. It became clear that a freight-rail strike would strand some transit commuters, including, in the Washington area.” “An emergency board President Biden established in July by to avert a strike proposed pay increases totaling 24 percent for freight-rail workers over five years ending in 2024. The unions complained that even such substantial raises were not enough to compensate them for their workplace conditions. Continuing supply-chain problems and inflation gave them even more leverage; with weeks to go before midterm elections, the Biden administration hardly needed more incentive to avoid a potentially crippling labor action.” So, is the rail crisis resolved? Short answer – no. What we saw in September was a temporary fix that got the country through the fall and farmers through fall harvest. But, for those who are storing grain with hopes of improved prices later in this year or early next year, and elevators that are doing the same, the thought of a shutdown is still a threat to their financial well-being. The bright side of the coin is that the union workers don’t want to strike, many have CONTINUED --