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Vilsack Discusses Railway Woes with Obama, and Senators Introduce STB Reform Bill

Sep 11, 2014

Railway issues, including shortage of cars, delays and the possible impact on farmers as a new crop harvest begins this season were high priorities in discussions on The Hill this week.

As the backlog of rail cars in the upper Midwest continues, and elevators are still full of 2013-crop grain ahead a record 2014 harvest, both farmers and lawmakers worry the backlog will create a grain storage crisis as a new crop harvest begins.

Agriculture Secretary Tom Vilsack met with President Barack Obama and Vice President Joe Biden this week and discussed the railway issues. Vilsack said he is “deeply concerned with the record harvest underway,” and described the problem to the president, telling him while BNSF is taking steps in the right direction, the Canadian Pacific still has a ways to go.  Vilsack also said Agriculture Undersecretary for Marketing and Regulatory Services Ed Avalos wrote a letter to the Surface Transportation Board (STB) underscoring USDA’s concerns.

Last week, ASA Director Lance Peterson, a soybean farmer from Underwood, Minn., represented ASA and the Minnesota Soybean Growers Association at the STB hearing on the rail car issues in Fargo, N.D. Peterson re-emphasized points he made at a previous STB hearing in the spring, calling for “adequate and timely rail service.” Also testifying for soybean growers at the hearing was Eric Broten, representing the North Dakota Soybean Growers Association.

On Wednesday, the Senate Commerce, Science and Transportation Committee held a hearing on freight rail service.  Sen. Jay Rockefeller, D-W. Va., the chairman, and Sen. John Thune, R-S.D., the ranking member, introduced legislation to reform the STB and improve rail service beyond the Midwest.

In a news release, Rockefeller and Thune said that the Surface Transportation Board Reauthorization Act of 2014 would increase the STB’s investigative authority to launch its own investigations before a complaint is filed; improve rate review timelines to make it easier for board members to communicate and improve alternative dispute resolution practices and more.