PIERRE — Few things are more important to farmers than railroads to ship their goods to market. Now a new law proposed in Congress could make railroad service better and cheaper for farmers.

The Surface Transportation Board Reauthorization Act of 2009, co-sponsored by a bipartisan group of senators including Sen. John Thune, R-S.D., is designed to give those shipping with railroads more say in the industry.

“It’s designed to address the needs of rail shippers while at the same time recognizing the importance of maintaining a strong national freight system,” Thune said. “What the bill would do is create a new customer advocate at the Surface Transportation Board who would work with the shippers who have questions or complaints. It would streamline the complaint process, create a binding arbitration process and lower the filing fee for a complaint to about $350.”

David Montgomery | Capital Journal Train cars wait on railroad tracks by the Pierre grain elevator on Sunday. A new bill proposed in Congress could improve rates and service for rail shippers, such as farmers. Advertisement

The Surface Transportation Board is a government body overseeing railroads, as well some interstate busing and trucking operations.

Advocates in favor of the new bill believe it could lead to better and cheaper rail service for shippers.

“For quite a few years now the railroads have been dealt the upper hand as far as participating with shippers. They’ve been able to dictate rates and services to shippers because they’re a monopoly,” said Mike Snovitch, executive director of the Alliance for Railroad Competition, a lobbying organization for railroad shippers.

“This legislation will, I hope, curb the trend.”

Mike LoVecchio, spokesman for Canadian Pacific Railroad, which operates the railroad running through Pierre, referred comments to the Association of American Railroads.

Patti Reilly, spokesman for the AAR, said her organization isn’t opposing the reauthorization act, but would like to see changes.

“We think it’s a work in progress,” said Reilly. “We’re going to continue to work with (the Senate Commerce Committee) and Congress as it makes its way though the process so there are some change made to address the concerns we have about the bill as it is today.”

South Dakota farmers groups are supporting the legislation.

“We’ve been needing some meaningful relief for rail shippers for a while now,” said Scott VanderWaal, president of the South Dakota Farm Bureau.

“We think this bill could lead to a better process for challenging rates and services. It should help to balance the railroads’ needs for adequate revenues for maintenance and expansion with the needs of the railroad customers — in other words, farmers and grain merchandisers — to have competitive rates.”

“We hope that this can improve the competition conditions and bring transparency that’s lacking right now in the rail industry — and hopefully bring about some relief for rail shippers and our farmers and ranchers,” said Chris Studer, spokesman for the South Dakota Farmers Union. “Ag’s in a tough spot right now, with prices down. Every little bit helps.”

Grain elevator operators are in favor of the bill, too.

“Generally I support the efforts,” said Ron Mitzel, vice president for marketing for Dakota Mill & Grain, which operates the grain elevator in Fort Pierre.

“I think this bill is going to open it up so if you feel your rates are unfair you can take it through the Surface Transportation Board at a little less cost than right now.”

Randy Brown, co-owner of Harrold Grain, likes the sound of the bill but is skeptical if it will bring real benefits for farmers and shippers.

“If you’ve ever dealt with the railroads and the Surface Transportation Board, nothing ever happens fast,” Brown said.

“It’ll be interesting to see. I’ll believe it when I see it.”