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Surface Transportation Board Aug. 29 dismissed a rate complaint filed by Farmco Inc. against 890-mile Central Kansas Railway LLC and 298-mile Kansas Southwestern Railway LLC.

Farmco, a division of Key Technology Inc., sought damages from the short lines claiming the railroads failed to deliver hopper cars guaranteed to Farmco under grain-car allocation procedures established in Union Pacific Railroad tariffs.

Farmco — which manufactures mechanical sizing, sorting, separating, and grading machines for the processed fruit, vegetable and potato industries — recently signed an agreement with the short lines settling the claim, then asked STB to dismiss its suit. Agreement terms weren't disclosed.

STB ruled that the dismissal is consistent with the board's policy that encourages private-sector firms to resolve disputes whenever possible.