Record ag sales are boon to transportation industry, Johanns says

Record ag sales are boon to transportation industry, Johanns says U.S. farm cash receipts should reach a record $259 billion this year, buoyed in large measure by strong demand for ethanol fuel products and agricultural exports, Agriculture Secretary Mike Johanns said Wednesday.
   The Department of Agriculture has revised upward its estimate of agricultural exports this year to a record $78 billion, up $9.3 billion from the previous year, Johanns said.
   The increase in farm sales, estimated to grow $16 billion from 2006, means more business for truckers, he said.
   With the help of federal and state incentives for developing renewable fuels, ethanol production is expected to reach more than 11 billion gallons annually within a few years, providing opportunities for trucking companies to transport feed stocks, ethanol and byproducts such as animal feed.
   The Agricultural Marketing Service, which monitors transportation for the USDA, will soon begin reporting on ethanol transportation by truck and rail, Johanns told a trucking audience at a gathering in Arlington, Va., sponsored by the American Trucking Associations’ Agriculture and Food Transporters Conference.
   Truckers will also transport or use large amounts of biodiesel fuel as production increases. Biodiesel is a blend of diesel and vegetable oils.
   “Rail, barge and truck sectors will need to expand to deal with the growth. We will need to take a look at rail and barge infrastructure and trucking service availability. I recognize the importance of issues like driver shortages, truck weight limits and hours of service. We are watching developments and monitoring these situations carefully,” Johanns said.