Source: National Corn Growers Association
Concerned with whether or not recent acquisitions and consolidation in the rail industry may have led to unfair price increases, the National Corn Growers Association commissioned a study to review and analyze freight rail rates for corn.
"We need a financially healthy rail system in this country if we are to prosper," said NCGA First Vice President Bart Schott, a grower from Kulm, N.D. "However, we don't want our transportation options to be limited by unfair practices and the study provides a starting point for discussions regarding reasonable pricing."
Informa Economics evaluated overall rail revenue-to-variable-cost ratios for corn moved by rail in the United States. They looked at the impact of corn market geography, historical freight pricing, production and recent improvements in transportation infrastructure and technology.