(The following story by Jo Dee Black appeared on the Great Falls Tribune website on October 16.)
GREAT FALLS, Mont. — Farm groups will ask their members to consider an agreement with BNSF Railway to create a formal mediation process to help grain producers resolve freight rate issues.
“The details aren’t all worked out yet, but if our members decide to approve the proposal, it will give producers an avenue that allows them to challenge rate issues with the railroad,” said Will Roehm, president of the Montana Grain Growers Association.
Right now grain producers, who pay the freight to ship wheat and barley, have no representation in disputes with the railroad over rates, Roehm said.
“Even though farmers pay the freight, we are not considered shippers by the Surface Transportation Board because we don’t write the checks to BNSF,” Roehm said. “Unless we can get a grain elevator company to file a case, producers don’t have a form for judicial review in disputes.”
The Surface Transportation Board is the federal agency charged with transportation oversight.
“This potential agreement with BNSF would establish a process for mediation and an independent arbitration board to hear producer concerns,” Montana Farm Bureau Federation President Dave McClure said. “For the first time ever, producers can be represented directly in rate disputes with BNSF.”
Under the plan, disputes would first go to mediation, with formal binding arbitration as the second step, McClure said.
“Farmers know common sense, and this is common sense,” said Sen. Jon Tester, D-Mont. “It’s the result of sitting down and working together to do what’s right. And it’s a step in the right direction to level the field for Montana’s grain growers.”
BNSF Railway spokesman Gus Melonas said the company is committed to creating an innovative process and forum to address Montana farmers’ concerns over freight rates.