(The following story by Jo Dee Black appeared on the Great Falls Tribune website on November 24, 2009.)
GREAT FALLS, Mont. — Two grain organization will use a new mediation process for the first time to determine if Montana farmers are paying unfair railroad rates.
Montana Grain Growers Association and Montana Farm Bureau Federation will request formal mediation of a Shelby-to-Portland rail freight rate with BNSF Railway.
Earlier this year, the two farm organizations signed an historic Alternative Dispute Resolution agreement with BNSF Railway, which established a process for mediation and binding arbitration of Montana wheat and barley freight rates.
The agreement established a steering committee of MGGA and MFBF representatives, who review and consider the merit of freight rate disputes. Three grain producers from each organization serve on a steering committee, which met Friday to study the BNSF freight rate increase for shuttle loaders scheduled to take effect Jan. 1.
“We have a signed complaint from a Shelby area wheat producer, which is required to begin the formal process.” said Will Roehm, an MGGA officer and steering committee member. “We believe this dispute has merit under the terms of our ADR, and we welcome comments and participation by any producers who are customers of the Shelby rate to Portland for shuttle trains.”
MGGA Executive Vice President Lola Raska declined to name the Shelby farmer because the producers could not be reached Monday.
MFBF vice president Bruce Wright said the producers’ mediation case will focus on competitive factors.
“We will study rates for similar shipments in other parts of the country,” said Wright. “But our primary focus will be the ability of our producers to move their products and compete for markets.”
“BNSF is pleased to work the Montana Farm Bureau and Montana Grain Growers Association on this mediation process,” said Suann Lundsberg, railroad spokeswoman. “We have faith that this process offers shippers a cost-effective, timely and equitable process for rail rate dispute resolution.”
Under the terms of the agreement, MGGA and MFBF will present the complaint to BNSF Railway, and all parties agree to mediate the issue within 30 days. In the event an agreement cannot be reached, an independent group of arbitrators will issue a binding decision.
“Our producers want us to find workable solutions with our industry partners, said Gordon Stoner, chairman of the Alternative Dispute Resolution committee. “Over the last five years, MGGA, MFBF, and BNSF Railway have had good results with informal mediation of grain producers’ concerns and our ADR agreement was forged to ensure that process continues.”