NCGA, Ag Groups Call on Senate Committee to Discuss Rail Issues (7-11-06)

In an effort to call attention to agriculture shipping issues and give producers opportunities to discuss current situations and policies regarding rail transportation, the National Corn Growers Association (NCGA) and other agricultural organizations are calling on Senate Agriculture Committee leaders to hold a hearing this year to assist in improving shipping conditions for producers.

“We believe Congress must have as much information as possible regarding the importance of efficient and properly working infrastructure to the agriculture industry, and that is why we are urging the Senate to hold a hearing,” said Bill Chase, NCGA Production and Stewardship Action Team chair. “Commodity groups, as well as other industries, rely on a strong and viable railroad system, and, right now, that system needs help.”

In the letter, the groups stated, “Since the passage of the Staggers Act of 1980, the degree of rail captivity in agriculture has increased dramatically, and America’s farmers continue to experience both unreliable service and higher rates from the railroads.”

The letter goes on to note several states are experiencing rail transportation problems, including being held “captive” to a single railroad, as well as the increasing costs of transporting agricultural products. Transportation costs can reach as much as one-third of the overall price a producer receives. Additionally, poor service can cause delays of three to four weeks in delivery dates.

To read the letter, please click here.