Grainnet

NGFA Commends House for Including Major Rail Study in 2007 Farm Bill

Washington, DC-–The National Grain and Feed Association today (July 30) commended the House for including a provision in its version of the 2007 farm bill that would require a comprehensive study of rail transportation issues affecting U.S. agriculture.

The provision, sponsored by Rep. Tim Walz, D-Minn., had been added as an amendment during House Agriculture Committee consideration of the farm bill, and was retained when the full House passed the measure on July 27 by a 231-191 vote.

The NGFA strongly supported the amendment during the committee’s deliberations. The Walz amendment would require the secretary of agriculture, in consultation with the secretary of transportation, to complete the study within nine months after the farm bill is signed into law.

Among other things, the provision requires that a report and recommendations be submitted to Congress concerning the adequacy of rail capacity, competition and service reliability in rural America, as well as the accessibility of rail customers to federal forums to resolve disputes with rail carriers.

“The competitiveness of U.S. agriculture increasingly is dependent upon having reliable, cost-efficient rail transportation,” said NGFA President Kendell W. Keith.

“To maintain our ability to remain competitive in a very dynamic domestic and world market, and to be in a position to capture new market opportunities, the United States must address the many transportation challenges facing rural America.” The NGFA, established in 1896, consists of 900 member companies from all sectors of the grain, feed, processing and exporting business that operate about 6,000 facilities nationwide and handle more than 70 percent of all U.S. grains and oilseeds.

The NGFA also consists of 36 affiliated state and regional U.S. grain and feed associations, as well as two international affiliated associations.

In addition, the NGFA has strategic alliances with the North American Export Grain Association, Grain Elevator and Processing Society, and Pet Food Institute.

The rail study mandated in the House-passed farm bill would require that the report assess the importance of freight railroads concerning:

1) The location of grain elevators, ethanol plants and other agricultural facilities. 2) The movement of agricultural commodities and products to market.

3) The delivery of equipment, seed, fertilizer and other products important to agricultural production. 4) The delivery of ethanol and other renewable fuels.

5) The delivery of domestically produced resources for use in generating electricity in rural areas. 6) The development of manufacturing facilities in rural areas.

7) The vitality and economic development of rural communities.

The NGFA’s membership encompasses all sectors of the industry, including country, terminal and export elevators; feed manufacturers; cash grain and feed merchants; end users of grain and grain products, including processors, flour millers, and livestock and poultry integrators; commodity futures brokers and commission merchants; and allied industries.

Canadian and Mexican firms also are NGFA members, and use its Trade Rules and Arbitration System by specific reference in their contracts. For further information, please contact Randy Gordon at 202-289-0873.