Labor shortage a primary concern for transporting grain

by | Feb 28, 2022 | 5 Ag Stories, News

The Iowa Soybean Association held a panel discussion on supply chain issues at the Innovation to Profit Conference on February 17th.

Mike Steenhoek, executive director of the Soy Transportation Coalition, led the panel discussion with soy industry professionals about how transportation, emerging markets, and the supply chain play into the production decisions that Iowa soybean farmers make. Much of the conversation was steered towards the transportation side of things. Steenhoek said it was because ?people don?t think about transportation until they hit a pothole- and we?ve had a lot of potholes lately, both figuratively and literally.?

?One of the biggest challenges across the board when it comes to transportation is the supply of labor,? Steenhoek said. ?It?s one thing to have a truck; it?s another thing to have a truck driver. It?s one thing to have a barge; it?s another thing to have a crew willing to work it. That?s really the challenge, and it?s particularly acute when it comes to areas in rural America. These transportation industries and companies- they?ve always encountered challenges in getting the labor that they need because one of the inherent liabilities for transportation companies and providers is that you?re away from home for an extended period of time. There are some people who find that an attractive way of life, but there?s a lot of people who don?t. That?s always been an inherent challenge that they?ve had.?

One factor that?s exasperating the labor shortage is competition. Many business across various sectors are all competing for the same dwindling pool of truckers and other transportation specialists.

?It?s become all the more acute because, with the labor shortage that?s occurring across the economy, there?s really not a company that doesn?t have a ?Help Wanted? sign prominently hung on their front door,? Steenhoek said. ?So, these transportation companies are competing against construction, retail, food service, and distribution, and they?ll pay equal to- and often times greater than- what the transportation companies are able to afford, and you don?t have to be far away from home. There?s this real inherent challenge that?s occurring- particularly acute in rural areas. That?s clearly a concern, and we have to find ways to be creative to actually address some of these challenges.?

Steenhoek added that contacting your local and state elected officials can be the best way to make your voice heard and get the ball rolling.