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Floor Speech
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Mrs. FISCHER. Madam President, agriculture is a critical part of Nebraska's economy. It accounts for, roughly, $25.7 billion of Nebraska's gross State product. That is a little less than a quarter of our State's overall GDP. Nearly one in four jobs in the State is tied to agriculture.
That economic output is important because, thanks to States like Nebraska, hard-working family farmers and ranchers produce a wide variety of products that keep our grocery stores stocked and help to feed the world. But our Nation's agricultural bounty doesn't do anyone much good if it can't get to market, and that is where our complex transportation and infrastructure system comes into play.
The railroad industry, in particular, has a big role in bringing agricultural products to locations across the United States. That includes ports, where they can then be shipped to locations around the world. Whether it is grain or soybeans, railroads provide the means to affordably move thousands of tons of goods where they need to go. It is estimated that rail delivers 1.6 million carloads of agricultural products a year. That is why I am deeply concerned about the potential for a rail shutdown later this week.
I think it is very important that people understand what kind of economic impact such as a shutdown would have and how it would upend our Nation's agricultural sector. The consequences would be devastating. When agricultural products can't be transported, there will be price hikes, and there will be shortages. Our international exports of commodities like corn, soy, wheat, of which a large share moves by rail, will fall dramatically.
Fertilizer prices--an already expensive input due to inflation--will further skyrocket. The mere prospect of a shutdown on Friday means fertilizer and other hazardous materials have already started being removed from the rail networks on September 12. Biofuel plants could be forced to scale down operations or completely shut down.
I would also point out that we have harvest coming up in Nebraska. Family farmers in my State, many of whom are grappling with rapidly rising input costs, need a good harvest season. And if rail service isn't feasible, that possibility could go out the window.
Grain elevators, for example, could run out of storage and be unable to accept additional commodities. Family farmers and ranchers will lose critical revenue streams.
The bottom line is, if rail shuts down, our entire agricultural system shuts down. It is that simple.
All of this economic chaos would come on top of extreme inflation. Today's numbers put grocery prices up 13.5 percent over last year. Think about the toll this out-of-control inflation is taking on our working-class families.
Then there is the international turmoil. Russia's horrific invasion of Ukraine has dramatically curtailed the flow of grain, which, in turn, has exasperated food insecurity in Africa and the Middle East. And the war has also further strained the fertilizer supply chain. All of this is to say that the stakes of these rail negotiations couldn't be higher.
Nine of the twelve labor unions in the rail sector have been able to utilize the Presidential Emergency Board recommendations to come to an agreement. I note that the Board is composed of neutral, impartial individuals appointed by President Biden. Their recommendations are widely seen as benefiting all parties. It is critical that the remaining labor unions and the rail industry use those recommendations to reach an agreement as soon as possible.
Our entire agricultural system is at stake here, the economic welfare of the American people is at stake here, and the global food security is also at stake here.
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