(The following story by Jo Dee Black appeared on the Great Falls Tribune website on January 30, 2009.)
GREAT FALLS, Mont. — Montana farmers who feel the railroad rates they pay to ship their grain are unfair now have an affordable avenue to pursue to make their case.
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The BNSF Railway completed an agreement to hear farmers’ rate complaints made through the Montana Farm Bureau Federation or the Montana Grain Growers Association.
“This agreement is historic in nature because, for the first time, grain producers have a way to get involved,” said Bing Von Bergen, president of MGGA.
Until now, rail rate cases were heard by the federal Surface Transportation Board.
“The case has to be brought by a shipper, usually grain elevators in the case of grain,” Von Bergen said. “It’s expensive to just bring the case to the STB, about $250,000, and the process is very slow and extensive.”
The agreement with BNSF allows Montana wheat and barley farmers who believe the rail rates they pay are unfair to bring that case to either MGGA or MFBF.
If the organization determines the case has merit, it will be brought to mediation with BNSF. If mediation fails to produce an agreement between the sides, the case moves to third party, binding arbitration.
The new agreement gives grain farmers and BNSF officials a chance to prove the merits of their case, supporters say.
“The railroad is proud of what they’ve done for producers and feel their rates are justified and they look forward for a chance to prove their rates are reasonable,” said Bruce Wright, vice president of MFBF.
“We are grateful for (the grain groups’) leadership and willingness to work with us to improve service, build trust and expand the market for Montana producers,” said Gus Melonas, spokesman for BNSF.
The agreement, which is the product of about four years’ worth of talks, isn’t the result of any pending, specific concern over rates, Von Bergen said.
“For years, growers have said there needs to be a communication route with the railroad about rates,” he said. “BNSF wants producers to be happy; they don’t want there always to be complaints out there that something needs to be done.”
Montana farmers do not need to be members of MGGA or MFBF to have their cases considered, but the agreement limits cases to shipments of wheat or barley that travel at least 250 miles and originate and end with BNSF.