BNSF Lowers 48-Car Freight Rates

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Montana Farm Bureau Federation (MFBF) and Montana Grain Growers Association (MGGA) leaders announced on Friday a reduction in the freight rates charged to ship 48-car units of wheat from Montana to domestic and export markets.  The two farm organizations met with BNSF Railway officials recently to discuss the importance of Montana’s smaller elevators in the current marketplace.

Northern Ag Network spoke with Bruce Wright, vice-president of the MFBF after the announcement.

 

According to Wright, Bruce Wright, “January 2011 freight rates for 48-car shipments will be lowered 6 cents per bushel, narrowing the rate spread between 110-car shuttles and the 48-car shipments.”

 

Executive Vice-President for MGGA, Lola Raska, credited the ongoing mediation between BNSF Railway, MGGA, and MFBF for the rate adjustment.  

 


Montana’s crops and market destinations are being radically affected by Russian drought and increased appetite for peas and lentils in India, as well as large demand for soybeans in China. These factors, coupled with a reduced BNSF freight rate for Montana wheat shuttles to the Texas Gulf, are responsible for Montana’s hard red winter wheat now being shipped south to the Gulf.  Millions of bushels may go to that market this winter, as a direct result of collaboration between BNSF Railway, MGGA, and MFBF.

 

 

© Northern Ag Network 2010

Haylie Shipp

 

 

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