Rail findings from USDA transportation study

Farm and Ranch May 13, 2010 Rail is one of the most cost-effective modes for transportation for agricultural producers. That according to Bruce Blanton of USDA’s Agricultural Marketing Service.

Blanton: “Rail competition is vital to agricultural shippers because railroads have certain exemptions from anti-trust law.”

And Blanton says a recent study on rural transportation issues revealed;

Blanton: “Rail-to-rail competition for grains and oilseeds decreased from 1992 to 2007. Almost 75% of agricultural areas lost rail competition over that period.”

Other findings include an increase in rail monopoly to shippers of grain and oilseeds and revenue to variable cost ratios in ag areas. And as for rates for grain and oilseeds, Blanton says those are higher than for other commodities.

Blanton: “For example grain and oilseed rates increased by 46% compared to 32% for other commodities.”

And from 2001 to 2007 quarterly railroad fuel surcharges have increased significantly compared to the cost of fuel.

Rail Day was held in Washington D.C. last week. It is an annual event that allows rail reform advocates from around the country to show up in force and voice their support for rail legislation to Members of Congress and key staff. National Association of Wheat Growers First Vice President, Wayne Hurst of Idaho, joined a number of other wheat growers along with representatives from industries as diverse as electric generation and chemical companies for the 2010 Rail Day activities.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net.