Farm Compliance

S. 772 and H.R. 1650 are companion bills that would make obsolete antitrust exemptions that protect freight railroads from competition and therefore keep rail rates artificially and unfairly high.

“American agriculture depends on the railroad system, especially given the high costs of shipping commodities via truck. Like those in several other industries, agricultural producers are frequently captive rail customers and experience both unreliable service and exorbitantly high rates from the railroads,” stressed AFBF President Bob Stallman in separate letters to House members and senators who have not already signed on as co-sponsors.

Stallman said passage of the Railroad Antitrust Enforcement Act is vital before the 110th Congress completes its business this year.

;“Farmers all across America rely on reasonably priced rail service to deliver their crops to market. Freight railroads must be opened to fair and open competition so that prices for shipping agriculture commodities via rail can be fair and reasonable,” Stallman said.

Antitrust exemptions granted to the freight rail industry allow rail companies to charge farmers and ranchers and other captive shippers exorbitantly high rates to ship agricultural products. Removing these exemptions is expected to force railroads to compete for business and to reduce the rates charged to captive shippers.