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USDA TRANSPORTATION REPORT AVAILABLE CONCLUSIONS INCLUDE DECLINE IN COMPETITION & INCREASED RATES Last week, the U.S. Department of Agriculture released a long awaited and comprehensive report on agricultural transportation in the United States to members of Congress. The Study of Rural Transportation Issues was authorized by the 2008 Farm Bill and covers areas of transportation commonly used by agriculture in the United States including truck, rail, barge and ocean vessel. The primary focus was on rail freight. The Study of Rural Transportation Issues examined the effect of deregulation on the rail industry, the reasonableness of rates and the reliability of service, how better policies can improve the flow of freight through all modes of transportation and whether the federal grievance process for shippers is too cumbersome to be effective. The report examines some of the major issues facing agricultural transportation, including the dramatic effect of deregulation on the rail industry, a growing gap for funding the inland waterways and highway systems, availability of containers and ocean vessel capacity, and the infrastructure that may be needed to support a projected increase in biofuel transportation. The report also discusses the current approach to transportation policy in the United State in which each mode of transportation is often considered separately without an overarching view of the flow of freight through all the modes. The study also reaffirmed that freight rail is a critical mode of transportation for rural America and that decreased competition in the rail industry has led to increased rates for shippers and ultimately consumers who are buying groceries or paying their electricity bills. Study of Rural Transportation Issues may be found on the Agricultural Marketing Service website at: www.ams.usda.gov/RuralTransportationStudy
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