Federal Government Study Supports Co-op Belief that Rail Relief is Overdue
ST PAUL, Minn. (April 28, 2010) – A new report on rural transportation issues released by the U.S. Department of Agriculture includes findings about the cost to American farmers and consumers from the lack of competition in the freight rail industry.
“This USDA report is yet more concrete proof that rail reform is long overdue for Minnesota’s cooperatives and farmers,” said Amy Fredregill, Cooperative Network Vice President and chair of the Gopher CURE (Consumers United for Rail Equity) coalition. “The report shows that freight rail companies used excessive fuel surcharges to artificially boost profits.”
Bipartisan legislation is pending in Congress that will provide much-needed relief for America's farmers, and consumers and other job-creating industries.
“Cooperative Network and Gopher CURE strongly encourage Congress and the President to enact legislation into law this year to provide some relief to Minnesota’s consumers, farmers, and other business," said Bill Oemichen, Cooperative Network President and CEO.
Key report findings include:
- "The rapid consolidation of the railroad industry through mergers has resulted in a decrease in the unrestricted interchange of traffic, routing choices, and the level of competition among railroads."
- "Railroad service problems and high rates can directly impact rural consumers by pushing up electricity rates."
- "Almost 75 percent of agricultural areas lost rail competition from 1992 to 2007."
- "There is considerable evidence that railroad fuel surcharges recovered more than the additional cost of fuel, artificially boosting railroad profits. From 2001 to 2007, surcharges were 55 percent higher than the incremental increase in the cost of fuel."
Cooperative Network and Gopher CURE recognize the support of Congressman Tim Walz (D-Minn) who authored the 2008 Farm Bill provision that called for the transportation study, as well as other leaders in the Minnesota Congressional Delegation: Senator Amy Klobuchar (D-Minn), Congressman James Oberstar (D-Minn), and Minnesota Attorney General Lori Swanson who have been champions on behalf of consumers and rail customers.
Cooperative Network serves more than 600 member-cooperatives, owned by more than 6.3 million Wisconsin and Minnesota residents, by providing government relations, education, marketing, and technical services for a wide variety of cooperatives including farm supply, health, dairy marketing, consumer, financial, livestock marketing, telecommunications, electric, housing, insurance, worker-owned cooperatives, and more. For more information about Cooperative Network, visit www.cooperativenetwork.coop.
Gopher CURE is the state chapter of Consumers United for Rail Equity (CURE), a national rail customer coalition comprised of businesses in many industries. More information on CURE can be found at railcure.org. |
