Wheat export crisis looms with US-Mexico Rail Shutdown

Dec 29, 2023

The abrupt closure of two major rail crossings on the US-Mexico border, El Paso and Eagle Point, has sent shockwaves through the U.S. wheat export community. This move, effective from December 17, has put the longstanding and crucial wheat trade with Mexico in jeopardy.

Mexico, a top buyer of U.S. wheat, imports an average of 132 million bushels annually, a significant portion of which travels by rail. The closure of these crossings is particularly alarming as it impacts the transit of at least 13 million bushels of wheat, worth more than $114 million annually.

This disruption is causing considerable anxiety among U.S. wheat exporters. Trains, ready with shipments from the Northern Plains, are currently on hold, creating uncertainties in meeting commitments to Mexican customers. This not only risks current transactions but also threatens the long-established reputation of the U.S. as a reliable wheat supplier.

In response, the National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW), along with other agricultural organizations, have urgently petitioned U.S. Customs and Border Protection. Their joint letter emphasizes the need to reopen these rail crossings promptly to ensure a steady wheat supply to Mexico.

While acknowledging the challenges faced at the border, these organizations stress that a supply chain crisis in Mexico can be prevented. The reopening of the crossings is crucial for maintaining the integrity of the U.S.-Mexico agricultural trade. The situation highlights the dependency of international trade on efficient border operations and the need for swift governmental response to safeguard these economic relationships.

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.