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Grain Growers, Farm Bureau to mediate freight rate with BNSF railwayMontana Montana Grain Growers Association and Montana Farm Bureau Federation announced Nov. 23 they have initiated formal mediation of a Shelby, Mont., to Portland, Ore., rail freight rate. Earlier this year, the two farm organizations signed an historic Alternative Dispute Resolution agreement with BNSF Railway which established a process for mediation and binding arbitration of Montana wheat and barley freight rates. The ADR agreement established a steering committee of MGGA and MFBF representatives, who review and consider the merit of freight rate disputes. Three grain producers from each organization serve on the ADR steering committee, which met Nov. 20 to study the BNSF freight rate increase scheduled to take effect Jan. 1, 2010. "We have a signed complaint from a Shelby area wheat producer, which is required to begin the formal process," said Will Roehm, an MGGA officer and steering committee member. "We believe this dispute has merit under the terms of our ADR, and we welcome comments and participation by any producers who are customers of the Shelby rate to Portland for shuttle trains." The group studied a broad range of Montana freight rates, and concluded that most would not qualify for relief at this time. BNSF rates for most grain shipments in the state have remained fairly constant in recent years. MFBF vice president Bruce Wright of Belgrade, Mont., indicated the producers' mediation case will focus on competitive factors. "We will study rates for similar shipments in other parts of the country," said Wright. "But our primary focus will be the ability of our producers to move their products and compete for markets." Under the terms of the ADR agreement, MGGA and MFBF will present the complaint to BNSF Railway, and all parties agree to mediate the issue within thirty days. In the event an agreement cannot be reached, an independent group of arbitrators will issue a binding decision. Gordon Stoner of Outlook, Mont., chairs the ADR committee and also serves as elected treasurer for MGGA. "Our producers want us to find workable solutions with our industry partners," explained Stoner. "Over the last five years, MGGA, MFBF, and BNSF Railway have had good results with informal mediation of grain producers' concerns and our ADR agreement was forged to ensure that process continues."
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