Heitkamp, Hoeven Lead Conference on Ways to Improve Transportation of Agriculture Products in Northern Plains

Press Release

U.S. Senators Heidi Heitkamp and John Hoeven today opened and co-hosted a two-day conference to discuss ways to improve the transportation system for agriculture products -- an issue of great concern in recent years -- in North Dakota and across the Northern Plains.

The conference examined the challenges and issues that farmers and producers in the region have been facing, particularly in the past year and as this fall's harvest comes to a close. Heitkamp moderated a panel discussion on transporting agriculture with Chairman of the U.S. Surface Transportation Board (STB) Daniel Elliott, the agency which is tasked with resolving service disputes, and U.S. Department of Agriculture (USDA) Under Secretary for Marketing and Regulatory Programs Edward Avalos where they talked about what can be done to address the agriculture shipment delays.

Heitkamp and Hoeven co-hosted the conference with Dr. Won W. Koo, Director of North Dakota State University's (NDSU) Center for Agricultural Policy and Trade Studies. Panelists and speakers at the two-day conference included STB Chairman Daniel Elliott, USDA Under Secretary for Marketing and Regulatory Programs Edward Avalos, and top officials from Burlington Northern Santa Fe (BNSF) and Canadian Pacific railways.

"Agriculture shipment delays have had crippling effects on some of the hardest-working folks in our country but it really speaks to the larger issue of a transportation system that has failed to live up to expectations," said Heitkamp. "The reason we put together this conference was to enable top officials, producers, elevators, and the agriculture industry to take a serious look at the challenges of how we're transporting agriculture products in the region today and how we can improve our methods in the future to prevent backlogs. I've been working closely with the U.S. Surface Transportation Board since the spring to help address these issues -- including testifying at its field hearing in Fargo this fall -- and will continue to work with the agency so farmers and producers in North Dakota and across the Northern Plains have the certainty and conditions they need to do their jobs and help feed families around the world."

"We're working to get BNSF and Canadian Pacific to build a bigger, better railroad in North Dakota," Hoeven said. "Our state's economy and population are growing, and railroad infrastructure needs to grow with them. The real solution for agricultural rail shipping will be a sustained capital investment by BNSF and CP to add more rail capacity, as well as more locomotives, rail cars and crew to move people and products. In other words, we need to build a more modern, more responsive rail transportation industry in North Dakota and across the Upper Midwest to meet our growing needs. By bringing experts in the field together at this conference today, we are encouraging the kind of communication and brainstorming that will result in real solutions to our agriculture shipping challenges."

Farmers, elevators, and processors have all had a difficult time in getting products to market in a timely fashion, hurting their bottom lines and impacting their business and livelihoods. The U.S. Department of Agriculture's (USDA) Economic Research Service already forecasts that net farm income will be down more than 23 percent this year nationwide compared to last year, placing added strain on farmers, producers, and their families.

Heitkamp has been leading the charge to defend North Dakota's farmers and grain elevators by pushing on Canadian Pacific, BNSF, and government agencies to address the unacceptable backlog of agriculture shipments in North Dakota since last winter. As a result, the railroads have been working to make needed investments in the rail infrastructure to handle more shipments and Heitkamp continues to remain in regular contact with them. For months, Heitkamp has been pressing on the STB to look into the excessive delays on North Dakota's railroads. As a result, Heitkamp has had one-on-one conversations with the STB Chairman about addressing the delays and testified at a field hearing in Fargo in September that the STB held following her calls to the agency for action. Following these efforts, the STB took new action in October that will require transparency from all railroads nationwide by having them reveal more details about their rail shipment delays.

Hoeven has pushed the railroads to expand capacity to meet the needs of North Dakota's agriculture producers and growing economy. In February, he organized a meeting with BNSF railroad officials, executives from Crystal Sugar and representatives of the Farmers Union to resolve shipping delays. At that meeting, BNSF committed to investing $5 billion in rail infrastructure, including $400 million in North Dakota to expand rail capacity for shippers, replace and maintain network infrastructure and continue the implementation of Positive Train Control technology to enhance safety and efficiency. Hoeven also pressed CP Railway to make a significant investment in infrastructure, and in September, the company committed to investing $1.3 billion companywide in 2014, including $500 million of upgrades in its U.S. system over the next two years. The senator has held roundtable meetings where he pressed both BNSF and CP Railway officials to solve the problems with rail shipping and hear directly from the state's agriculture commodity groups how the railroad can better serve their needs. Hoeven has also been in regular contact with STB Chairman Daniel R. Elliott to address concerns about backlogs on agriculture rail shipments.

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