News Releases for August 2005
August 30, 2005
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Hoeven, Farm Groups, State Officials Call On BNSF To Improve Rates And Service
BISMARCK, N.D. - Gov. John Hoeven today in a letter called on Burlington Northern Santa Fe Railway (BNSF) to restore rail car availability for North Dakota producers. Joining Hoeven in signing the letter were numerous North Dakota agriculture groups, the state’s agriculture commissioner and the state’s public service commissioners.
“North Dakota farmers and shippers need the railroad, and the BNSF reaps substantial revenue from agriculture,” Hoeven and the other signatories wrote. “We continue to urge BNSF in the strongest possible terms, to enhance service and rates to meet market demand for all shipment sizes.”
Hoeven took the lead on the response after BNSF officials failed to address issues outlined in an earlier appeal the Governor and other organizations made regarding a serious rail car shortage and inequitable rates for North Dakota producers. In a chart included in the letter, Hoeven pointed out that BNSF had cut rail cars for small and mid-sized shipments by nearly half, from 30,304 during the last harvest season to 16,426 this season.
BNSF claims it doesn’t restrict car supply specifically to manipulate after-market bidding, but because they’ve completely suspended ordering, some shippers have reported having to pay up to $800 per car over the tariff rate. From a typical location in North Dakota, that translates into an additional cost of 24 cents per bushel over the 88 cents a bushel farmers are already paying to get their product to market, according to Hoeven.
“We’ve asked BNSF to fix these problems, and they haven’t, which is why we’re proceeding with our rail rate complaint with the Surface Transportation Board,” Hoeven said. “BNSF needs to do more for our farmers and shippers.”
Editors Note: Signatories of the letter are:
- Governor John Hoeven
- Ag Commissioner Roger Johnson
- North Dakota Barley Council
- North Dakota Corn Growers Association
- North Dakota Corn Utilization Council
- North Dakota Dry Pea and Lentil Association
- North Dakota Farm Bureau
- North Dakota Farmers Union
- North Dakota Grain Dealers Association
- North Dakota Grain Growers Association
- ND Public Service Commissioners:
- Susan Wefald
- Kevin Cramer
- Tony Clark
- North Dakota Soybean Growers Association
- North Dakota Wheat Commission
- US Durum Growers Association
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