NCGA Remains “Extremely Troubled” by Transportation Board Proposal (1-18-07)

The Surface Transportation Board’s (STB) proposed rules for handling rate complaints by shippers against railroads “will make an already untenable situation much worse,” said the National Corn Growers Association (NCGA) in comments submitted this week to the board.

NCGA joined nearly 40 other organizations, including soybean, wheat, barley, sorghum, oilseed and rice producer groups, in further protesting STB’s proposed changes to the current method of handling disputes between shippers and railroads.

In rebuttal testimony to STB, NCGA and other groups said the proposed rules “would slam the door shut against most, if not all, small rate challenges.” They also said STB drastically underestimated its cost and time estimates for the new procedures.

The dispute has been simmering since July, when STB proposed new rules for handling rate complaints against railroads. NCGA and other organizations filed initial comments last fall highlighting that the new rules would cost millions of dollars in legal fees and other costs, making it too expensive to file a complaint.

The organizations have also requested time before the board at a hearing Jan. 31 to present additional findings. NCGA has been engaged in every step of this process and has pointed out the importance of reliable, cost–effective transportation to agriculture, producers and rural America.

To view the comments in their entirety, click here.