Two senators call on USDA to analyze grain-by-rail delays; 30 ag organizations call on USDOT to reconsider proposed tank-car rules

U.S. Sens. Amy Klobuchar (D-Minn.) and John Thune (R-S.D.) on Wednesday sent a letter to U.S. Department of Agriculture (USDA) Secretary Tom Vilsack calling on the agency to conduct an economic analysis of the rail-service delays for agricultural products that have lingered for much of 2014.

The letter cites USDA Deputy Administrator-Transportation and Marketing Program Arthur Neal, who while testifying Sept. 10 before the Senate Committee on Commerce, Science and Transportation stressed the significance of rail-service issues on agriculture producers and grain elevators, the senators said in a press release.

"We respectfully request that the USDA conduct a more detailed economic analysis of the ongoing transportation challenges facing producers and agricultural end users in our region, including food processors, livestock producers and ethanol refiners," Klobuchar and Thune wrote. "We hope that the information provided by this analysis will present a clearer picture of the challenges facing the agriculture industry as we work to help resolve them."

A University of Minnesota report showed that transportation bottlenecks cost the state’s farmers nearly $100 million between March and May, and suggested the potential for another $124 million in lost revenue due to rail delays, the senators said.

"While very useful, such reports tell only part of the story," Klobuchar and Thune wrote. "When completing this analysis, we request that the USDA also consider, as appropriate, commodity prices, food prices and changes in agricultural exports."

Meanwhile, 30 national and state agricultural organizations have urged the U.S. Department of Transportation to reconsider and revamp its proposed new rules for tank cars hauling crude oil and ethanol to avoid exacerbating disruptions to rail service.

The groups voiced support for "practical, feasible and economically viable steps" proven to be effective in further enhancing the safety of crude and other flammable liquids transported by rail, the organizations said in a joint statement.

They called on the Pipeline and Hazardous Materials Safety Administration to:
• reconsider its proposed speed-restriction options by more carefully comparing anticipated safety benefits with the significant adverse rail service, rail network fluidity and economic impacts that would result;
• reconsider and modify the proposed schedule for retrofitting or replacing 30,000 tank cars currently in ethanol service by Oct. 1, 2018;
• consider taking a more comprehensive, risk-based approach to the issue of rail safety for flammable liquids by addressing the impact on derailments of such factors as substandard track conditions, inadequate track and/or roadbed maintenance and human error; and
• reconsider the proposal to require electronically controlled pneumatic brakes on certain flammable fuel trains.

"The proposed rule's failure to address railroad track inspection and maintenance is particularly egregious, and should be rectified as part of a more 'holistic' approach to rail safety," the organizations claim.

The national organizations are: the Agricultural Retailers Association, American Farm Bureau Federation, American Soybean Association, Corn Refiners Association, National Association of Wheat Growers, National Barley Growers Association, National Corn Growers Association, National Council of Farmer Cooperatives, National Grain and Feed Association, National Oilseed Processors Association, National Sunflower Association, U.S. Canola Association, U.S. Dry Bean Council and USA Dry Pea & Lentil Council.

The state agribusiness associations are: the Agribusiness Council of Indiana, Grain and Feed Association of Illinois, Michigan Agri-Business Association, Michigan Bean Shippers, Kansas Grain and Feed Association, Minnesota Grain and Feed Association, Missouri Agribusiness Association, Montana Grain Elevators Association, Nebraska Grain and Feed Association, North Dakota Grain Dealers Association, Northeast Agribusiness and Feed Alliance, Oklahoma Grain and Feed Association, Pacific Northwest Grain and Feed Association, South Dakota Grain and Feed Association, Texas Grain and Feed Association and Wisconsin Agri-Business Association.