Grain Inspection Crisis Threatens U.S. Port Operations
As Midwest grain flows decline, state-run inspection services at key ports like Duluth-Superior face funding shortfalls that jeopardize U.S. export reliability
A deepening crisis in grain inspection funding at Great Lakes ports is raising alarm among U.S. agriculture leaders, as shrinking Midwest grain flows force states like Wisconsin to subsidize federal inspection duties - a move seen by many as unsustainable.
At the Wisconsin Department of Agriculture's inspection facility in Superior, grain inspector Robert Moore meticulously checks wheat samples from the Dakotas and Minnesota. The grain, bound for Europe or North Africa, must pass strict tests for quality and safety. But the tools Moore uses - like the decades-old dockage tester and weathered grain divider - speak to a program operating on the edge of obsolescence.
Once a robust network of over 100 state inspectors in the 1980s, Wisconsin's program now employs just 14, the bare minimum to meet its USDA obligations. Funded by user fees collected from exporters, the service has seen a sharp revenue decline as grain volumes at Duluth-Superior have collapsed - from over 8 million metric tons in 1980 to just 720,201 in 2023.
Source: Wisconsin Department of Agriculture
"These inspections are the foundation of food safety overseas," said Wisconsin Agriculture Secretary Randy Romanski. "But without federal funding, the system isn't sustainable."
Shifting trade patterns, driven by rising Asian demand and Panamax-scale infrastructure on the coasts, have diverted soybean shipments west and reduced wheat acreage across the Midwest. The Duluth Seaway Port Authority reported that in 2023 only 561,320 short tons of spring wheat, 118,833 of durum, and small volumes of oats and beet pulp passed through the port.
As a result, Wisconsin has spent over $2 million in the past decade to keep inspections running. Five of the last seven fiscal years ended in a deficit. Yet any further cuts in staff could cause the program to fall short of federal standards.
Nationwide, the issue isn't isolated. Virginia and Washington have voiced similar concerns, and historical precedent shows what's at stake. In 2005, Minnesota handed over its inspection responsibilities to USDA due to budget issues. Wisconsin later assumed the role, but today faces the same pressures.
Net income is calculated by subtracting program expenses from each year's revenue
Organizations like the National Association of State Departments of Agriculture (NASDA) are calling for a new federal baseline funding model. "The current service fee structure sacrifices efficiency and competitiveness," said NASDA CEO Ted McKinney. A reauthorization of the U.S. Grain Standards Act this September may offer a chance for Congress to act.
The stakes are high. Without intervention, critical inspection services - and the U.S.'s credibility as a grain exporter - may be compromised. As Romanski put it, "This is too valuable of a service to lose."