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Why Canceling Pipeline Projects Could Cost Farmers $1 Billion – 7/26/20

According to a new release posted by AgPro, canceling pipeline projects could cost farmers $1 billion.

In June, a Supreme Court ruling cleared the way for several pipeline projects, but excluded the expansion of the Keystone XL pipeline. Another federal judge ordered Dakota Access to halt oil shipments pending a new environmental review.

While an appeals process is underway, closing that pipeline could pose problems for moving grain. 

18 states filed an appeal in Washington D.C. in order to overturn a judge’s decision to halt work on the pipeline. Arlan Suderman of Stone X Group Inc. says the pipeline helped ease pressure on an overloaded rail system in the north plains, specifically the Dakotas. Without that pipeline, Suderman fears more oil will need to be moved by rail, which means a busy rail system could mean weaker basis for farmers if rail cars become sparse.

“When we look at [what] it's about, it's better than a half million barrels per day, and maybe up to 600,000 barrels per day, that need to move,” he says. “If you can't move it on the pipeline, because the judge is successful on shutting it down, most of it's going to go on rail, and that's going to squeeze out the grain industry. "

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