Michigan agricultural, chemistry industries call for Congress to intervene on rail labor dispute

Rail network shutdown would be catastrophic for Michigan businesses

LANSING, Mich. – Leaders of trade organizations representing hundreds of Michigan businesses today called on Congress to intervene in the rail labor dispute that threatens to shut down America’s freight rail network in early December.

“A rail strike would be devastating for Michigan’s economy and cannot be allowed to occur,” said Chuck Lippstreu, president of the Michigan Agri-Business Association. “Michigan agriculture is a leading economic engine for our state, pumping more than $100 billion into our economy every year. Rural businesses depend on rail to move grain, fertilizer and many other products. A rail strike would pile on to existing logistics challenges in our industry and snarl the agricultural supply chain.”

“Rail service is essential to the transportation of chemicals key to manufacturers of all kinds, as well as water treatment, refining and electricity generation,” said John Dulmes, executive director of the Michigan Chemistry Council. “The business of chemistry would be among the first impacted, and hardest-hit, in the event of a rail network shutdown, and we are counting on Congress to act.”

In September, the Biden administration helped broker tentative contract agreements between major rail carriers and their labor unions. Unfortunately, these agreements have been rejected by several unions. The ‘status quo’ period where unions have agreed to continue working ends Friday, Dec. 9. With no work agreement and no Congressional action, a strike would begin. Certain commodities shipped by rail could start to be embargoed as soon as this weekend.

President Joe Biden yesterday called for Congress to intervene and approve the contract agreements reached in September.

Dulmes said chemical manufacturers in Michigan rely on regular rail shipments to operate and would face potential disruptions within days of a strike. Chemicals transported by rail support industries – including automotive, semiconductor and steel production – accounting for 4% of GDP. Freight rail is also needed to deliver essential services to people across Michigan, particularly for chlorine and other water treatment chemicals.

A rail strike would also be a major disruption for rural Michigan, Lippstreu noted, with grain and fertilizer transportation, and access to export markets of particular concern. A wide range of Michigan-grown products are sent by rail to markets across the nation and to export terminals. Additionally, Michigan farm supply retailers depend on rail service for fertilizer shipments, and a rail strike would further tangle fertilizer supply chains that have faced historic disruption in recent years.

A rail strike would amplify existing rail service problems faced by Michigan and U.S. businesses that primarily stem from national ‘Class I’ freight rail carriers. These rail service disruptions were recently termed a “service meltdown” by the chairman of the U.S. Surface Transportation Board.

“Our industries and many others need reliable, timely rail transportation service, and this threat of a rail strike is the latest potential disruption faced by Michigan businesses,” said Dulmes. “Long-term reforms are still needed to ensure the viability of freight rail, but a rail strike would be a huge setback and greatly amplify existing problems in the network. We are counting on Congress to act without delay and avert such a disruption.”

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About the Michigan Agri-Business Association: The Michigan Agri-Business Association serves as a strong advocate and dedicated resource for Michigan’s food and agriculture sector. The Association’s 300 members span the agricultural value chain. They include retailers that provide seed, fertilizer, crop protection and technology to farmers; businesses that handle and export grain; animal feed suppliers; food processors; logistics companies and beyond. Learn more at www.miagbiz.org.

About the Michigan Chemistry Council: The Michigan Chemistry Council, established in 1967, represents Michigan’s chemical manufacturers, formulators and distributors. Chemistry is one of Michigan’s largest manufacturing sectors, supporting more than 80,000 Michigan jobs and directly impacting more than 96% of all manufactured goods. Chemical products are one of the leading categories of freight rail moved in Michigan. Learn more at www.michiganchemistry.com.

 

Agricultural Leaders of Michigan host virtual forum with legislative candidates

Legislative candidates had opportunities in September and October to learn more about Michigan agriculture as they prepare to engage with the farming and rural communities across the state.

During these virtual presentations, representatives from Michigan Milk Producers, Michigan Pork Producers, GreenStone Farm Credit Services and Michigan Agri-business Association provided a quick overview of their organizations and laid out key issues facing their members.

These forums offered a chance for candidates to meet the leadership in the ag industry and have their questions answered by experts in the field. The October forum can be viewed https://youtu.be/RUcm3LFtUwg.

Ag Leaders: USMCA is a positive step for Michigan agriculture, enforcement will be key

New U.S.-Mexico-Canada trade agreement goes into effect Wednesday

LANSING – With the U.S.-Mexico-Canada Trade Agreement (USMCA) officially taking effect Wednesday, July 1, the Agricultural Leaders of Michigan (ALM) emphasized the positive benefits of the agreement for Michigan agriculture. The leaders applauded administration efforts to negotiate USMCA, as well as bipartisan leadership from Michigan’s congressional delegation to ratify the agreement.

“Our North American neighbors are long-standing, dependable customers for Michigan agricultural products, and USMCA is critical to maintain these markets for farmers and agribusinesses,” said Chuck Lippstreu, president of the Michigan Agri-Business Association. “As most segments of American agriculture continue navigating a deeply uncertain time, the negotiation and approval of USMCA is a bright spot for many in the industry.”

Michigan exports approximately $900 million worth of agricultural products to Canada and $174 million to Mexico annually. In addition to maintaining these markets, USMCA builds on the previous North American Free Trade Agreement, enhancing access for U.S. dairy and poultry products into Canada, eliminating Canada’s unfair Class 7 milk pricing policy and establishing strong collaboration on biotechnology.

“Mexico is the leading export destination for U.S. pork products, and Canada is also a top pork buyer, so USMCA is a win for our Michigan pig farmers,” said Mary Kelpinski, CEO of the Michigan Pork Producers Association. “As this agreement takes effect, we applaud all those who worked hard to negotiate the agreement and we appreciate the bipartisan leadership shown by Michigan’s Congressional delegation in approving USMCA.”

Joe Diglio, president & CEO of the Michigan Milk Producers Association, said attention now turns to enforcing key provisions of the agreement.

“USMCA is promising for Michigan dairy farmers, and as the agreement goes into effect this week, enforcing its key points will be critical,” Diglio said. “In particular, this new agreement makes great progress toward leveling the playing field for U.S. and Canadian dairy farmers, and it will be important for Canada to live up to its USMCA commitments in the months and years to come.”

Final approval of USMCA was supported by both of Michigan’s U.S. Senators and the majority of Michigan’s U.S. House delegation.

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 Agricultural Leaders of Michigan is a coalition of agricultural, commodity and agribusiness leaders committed to promoting Michigan agriculture, participating in the ongoing dialogue about issues affecting our state, and harnessing agriculture’s power and potential to further grow Michigan’s economy. The coalition is made up of GreenStone Farm Credit Services; the Michigan Agri-Business Association; the Michigan Milk Producers Association; and the Michigan Pork Producers Association. Learn more at www.agleadersmi.com.

Agricultural leaders recognize Legislature, governor for commitment to Michigan agriculture funding

LANSING – The Agricultural Leaders of Michigan today issued the following statement recognizing Michigan House and Senate leaders and Gov. Gretchen Whitmer for finalizing an agreement to deploy more than $850 million in federal COVID-19 response funding across our state through the CARES Act Supplemental. 

“This bipartisan measure is good news for Michigan agriculture and our rural communities. It secures $10 million in critical assistance for food processors to continue safely operating and $5 million for farm safety grants to help Michigan farmers and their employees stay safe on the job. It also supports Michigan’s food banks as they work to meet historic demand. As Michigan’s reopening continues, we applaud the bipartisan collaboration shown by our leaders to reach this agreement, and we appreciate their commitment to a strong and reliable food supply.”

The statement was signed by:

  • Dave Armstrong, president and CEO, GreenStone Farm Credit Services

  • Mary Kelpinski, CEO, Michigan Pork Producers Association

  • Chuck Lippstreu, president, Michigan Agri-Business Association

  • Ken Nobis, senior policy advisor, Michigan Milk Producers Association

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 Agricultural Leaders of Michigan is a coalition of agricultural, commodity and agribusiness leaders committed to promoting Michigan agriculture, participating in the ongoing dialogue about issues affecting our state, and harnessing agriculture’s power and potential to further grow Michigan’s economy. The coalition is made up of GreenStone Farm Credit Services; the Michigan Agri-Business Association; the Michigan Milk Producers Association; and the Michigan Pork Producers Association. Learn more at www.agleadersmi.com.