How California’s New Locomotive Regulation Could Impact Midwest Agriculture

Sandro Steinbach, Shawn Arita, Seth Meyer and Sharon Sydow

farmdoc daily, 2025, vol. 14, issue 121

Abstract: California’s In-Use Locomotive Regulation establishes new requirements and standards for locomotives that operate in the state, which, if authorized, could have economic implications beyond the state’s borders and negatively impact agricultural producers that rely on rail transport, particularly those in the Midwest. This article examines the California In-Use Locomotive Regulation and its potential to change how farm and food products are transported across the United States. Among others, potential impacts include increased transportation costs and shifts in logistic strategies. As railroads operating in California would have to make new investments to comply with zero-emission mandates, these costs may result in lower prices to agricultural producers and higher costs to their customers both domestically and in export markets. Potential spillover effects could result in broader adoption of this regulation in other U.S. states, elevating national-level considerations that could influence food prices, farm income, and export competitiveness, further complicating agricultural supply chains.

Keywords: Agribusiness; Agricultural Policy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:illufd:358485

DOI: 10.22004/ag.econ.358485

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