The United States' food supply could be affected by an impending strike by railroad workers, potentially pushing up retail prices and limiting the country's grain exports.
The two main unions representing workers at US freight railroads are negotiating a contract for 60,000 workers who are demanding more quality-of-life provisions.
If the agreement cannot be reached by Friday, workers will go on strike and this could worsen the already affected supply chain.
The Association of American Railroads warned that shutting down rail operations could cost $2 billion a day and 20% of all grain shipments could be affected.
In fact, even at this point most major US railroads have stopped accepting new shipments of fertilizer and other materials, according to Justin Louchheim, senior director of government affairs at The Fertilizer Institute.
Lee Sanders, senior vice president of government relations and public affairs at the American Bakers Association, says these short-term disruptions can create devastating effects.
If farmers do not receive fertilizer, it will result in lower crop yields, driving up food prices and increasing inflationary pressures.
For now, the White House is looking for other initiatives to get out of this crisis, where administration officials are currently communicating with shipping, trucking and air transport companies to ensure that shipments continue.
