WASHINGTON – With agricultural shipments running weeks, if not months behind schedule in the Upper Midwest, executives from two major railroads insisted Thursday that they are not giving preferential treatment to burgeoning crude oil shipments out of North Dakota.
But officials from BNSF Railway Co. and Canadian Pacific Railway offered few assurances of when they can solve problems that could cost farmers in Minnesota and neighboring states hundreds of millions of dollars.
In a hearing before the U.S. Surface Transportation Board, the executives blamed bad weather and poor forecasting for agricultural shipping problems. Yet Steven Bobb, BNSF's chief marketing officer, admitted that astronomical growth in oil shipments out of North Dakota's Bakken field has combined with record harvests, increased containerized shipping and surging coal demand to create delays that will not end anytime soon.
"I do not see a return to pre-2013 [shipping speeds]," Bobb testified, speaking of a "new normal."
Farmers have been pressing the Obama administration to help them get grain trains moving again, partly so that fertilizer supplies can reach needed areas in time for spring planting. Thursday's hearing included a pair of Minnesota soybean farmers who traveled to Washington to explain how train troubles cost them money.
Lance Peterson of Underwood told the transportation board that an inability to ship will lead to a loss of $40,000 on his current crop of soybeans and a loss of more than $100,000 on next year's crop if adjustments are not made.
"We want to make sure there isn't an undue preference in [railroads'] shipping," Peterson, president of the American Soybean Association, said in an interview with the Star Tribune.
Minnesota Soybean Association President Bill Gordon of Worthington joined Peterson at the witness table and noted that the Chinese, who buy a large percentage of America's soybeans, have turned to South American producers because U.S. farmers cannot get their crops to market.