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GRASS ROOTS F E E D I N G T H E F U T U R E T H R O U G H F A R M E R S U N I O N E D U C AT I O N A P U B L I C AT I O N B Y M O N TA N A F A R M E R S U N I O N
MFU MEETS WITH STB TO DISCUSS RAIL RATES BY CHRIS CHRISTIAENS S P E C I A L P R O J E C T S & L E G I S L AT I V E S P E C I A L I S T
Montana, North and South Dakota Farmers Union sent a delegation to Washington D.C. in April for a meeting with the Surface Transportation Board where we discussed the Rate per Ton Mile increase in rail freight rates that have occurred in the three states versus the actual increase in rail costs. In the United States, railroads are designated as Class I, II, or III and governed by the Surface Transportation Board. BNSF is the largest railroad operator in Montana accounting for 94% of the State’s Class I rail miles Both North and South Dakota are 4th in the country with 54% under the control of one Class 1 Railroad.
PAID
GREAT FALLS, MT PERMIT NO. 93
NONPROFIT ORG US POSTAGE
Keep in mind that the rail traffic has remained rather flat and over the past 12 years it has actually declined by about 10%. Some of that decline is due to coal traffic and most recently to less oil traffic. Rail coal traffic seems to be about the same over 2018 as we speak with expected declines. In spite of these conditions the rail industry continues to have market dominance over their shippers and their ability to increase freight rates regardless of a flat demand. The Surface Transportation Board established The Rail Customer and Public Assistance Program to provide the opportunity for the public with an informal access to staff and expertise to discuss a voluntary resolution of rail operational and service-related issues. Rate increases have hit rail customers hard and when they are hauling grain we know who bears the freight costs. When service was deficient in northeastern Montana calls to the STB produced results in getting fertilizer shipments to Montana producers three years ago.
IN THE MARCH EDITION...
We have found the board to be open and willing to listen and take action. For this reason our recent visit leaves the expectation for results for those of us in captive shipper states. You may ask what the major problem is with the rail system in Montana. S T B C O N T I N U E D O N PA G E 8
MFU is coming to the Flathead Valley for the 2019 Mid-year Conference. Inside this edition is a conference agenda & registration information. We hope to see you there!
PAGE 6 MFU Members Talk National Women’s Conference