Office of the Secretary 

Washington, D.C. 20250 

May 12, 2023 

THE HONORABLE MARTIN OBERMAN 

Chairman 

Surface Transportation Board 

395 E Street, SW 

Washington, DC 20423 

Dear Chairman Oberman: 

Following up on my letter from a year ago, I would like to express my sincere appreciation for 

the Surface Transportation Board’s (STB or Board) efforts over the past year and share my 

continued encouragement for immediate and continued action. 

When I wrote the Board about rail service issues in March 2022, rail service was, in many ways, 

as poor as it had ever been. I was pleased to see the Board act swiftly by hosting our Deputy 

Secretary at a hearing on rail service deterioration, opening a proceeding to revise its procedures 

for expedited relief for service emergencies, and considering rules around railroads’ use of 

private cars. I was also encouraged by the Board’s collection of more service data, your 

December hearing on Union Pacific Railroad’s (UP) increased use of embargoes, and especially 

the Board’s final rules to streamline rate review in small cases. I know this work was done under 

your existing limited resources and I commend the Board and its staff for this incredible volume 

of work. 

Unfortunately, while rail service has improved from its worst levels last year, it remains 

inadequate and unreliable for many agricultural shippers. There is more work to be done. 

The delays and unpredictability seen in rail service are partly the result of the railroads’ embrace 

of precision-scheduled railroading (PSR) and its drastic reductions in workforce and assets to 

reduce operating ratios at the expense of service. As USDA has long expressed, the PSR 

operating model does not leave sufficient buffer in labor and assets for railroads to be able to 

handle unexpected spikes in demand, such as those seen over the past few years. And, as we’ve 

seen recently, this way of operating leaves the door open to unsafe working conditions which are 

harmful to workers themselves, and further increase the likelihood of catastrophic events like 

derailments when the skeleton staff has as little as a few minutes to inspect each rail car. 

It is of utmost important that the STB moves quickly to strengthen our rail system overall and 

specifically to improve service to agricultural shippers before railroad capacity again becomes an 

urgent, national issue. This work must also ensure the safety of rail workers and communities. 

An Equal Opportunity Employer 
 

THE HONORABLE MARTIN OBERMAN 

Page 2 

Specifically, I encourage the board to urgently and expeditiously: 

x Move forward on the open proceedings on private railcar use and emergency service 

orders. The shipper petition on private rail car use would improve incentives and restore 

balance around the railroads’ use of private cars and demurrage. The Board’s proposed 

changes to the emergency service rules will help provide relief in times of severe 

disruptions, which have become more frequent. 

x Move forward on reciprocal switching. Following the Board’s approval of the merger 

between Canadian Pacific Railway and Kansas City Southern Railway, ensuring adequate 

industry competition is more important than ever. The Board’s ongoing oversight of the 

highly consolidated rail industry is key to this objective. 

x Provide clarity on the railroads’ common carrier obligation. The railroads must 

provide reasonable service upon reasonable request. However, without clarity on what 

these terms mean and how the policy will be enforced, railroads are able to make 

unilateral decisions, with little regard for shipper needs. For example, a few observations 

raise important questions about whether railroads are meeting their obligation: first, UP’s 

use of embargoes to manage congestion and, also, the multiple cases brought to the Board 

where a shipper’s service was cut from 5 to 3 days per week. 

x Collect additional first-mile/last-mile (FMLM) service data. USDA appreciates the 

additional data the Board has been collecting as part of its monitoring. However, USDA 

encourages STB to significantly expand that data collection to cover additional 

commodities and provide more granular geographic data. Agricultural shippers have 

continually reported, to USDA, distinct service issues affecting specific regions of the 

country. More granular commodity and geospatial FMLM data will significantly improve 

visibility into those issues. 

More broadly, the railroads should not be able to continue to operate without buffer for 

unexpected demand, make historic profits, and engage in enormous stock buybacks, all while 

providing subpar service to agricultural shippers and disregarding safety. STB can and should 

counteract these negative trends in rail transportation by increasing competition and improving 

oversight with enhanced data. The Board should also ensure the railroads balance their focus on 

shareholders with their duty to provide high-quality common carrier rail service to the Nation. 

Sincerely, 

THOMAS J. VILSACK 

Secretary 
 

Office of the Secretary 

Washington, D.C. 20250 

May 12, 2023 

THE HONORABLE KAREN HEDLUND 

Member 

Surface Transportation Board 

395 E Street, SW 

Washington, DC 20423 

Dear Member Hedlund: 

Following up on my letter from a year ago, I would like to express my sincere appreciation for 

the Surface Transportation Board’s (STB or Board) efforts over the past year and share my 

continued encouragement for immediate and continued action. 

When I wrote the Board about rail service issues in March 2022, rail service was, in many ways, 

as poor as it had ever been. I was pleased to see the Board act swiftly by hosting our Deputy 

Secretary at a hearing on rail service deterioration, opening a proceeding to revise its procedures 

for expedited relief for service emergencies, and considering rules around railroads’ use of 

private cars. I was also encouraged by the Board’s collection of more service data, your 

December hearing on Union Pacific Railroad’s (UP) increased use of embargoes, and especially 

the Board’s final rules to streamline rate review in small cases. I know this work was done under 

your existing limited resources and I commend the Board and its staff for this incredible volume 

of work. 

Unfortunately, while rail service has improved from its worst levels last year, it remains 

inadequate and unreliable for many agricultural shippers. There is more work to be done. 

The delays and unpredictability seen in rail service are partly the result of the railroads’ embrace 

of precision-scheduled railroading (PSR) and its drastic reductions in workforce and assets to 

reduce operating ratios at the expense of service. As USDA has long expressed, the PSR 

operating model does not leave sufficient buffer in labor and assets for railroads to be able to 

handle unexpected spikes in demand, such as those seen over the past few years. And, as we’ve 

seen recently, this way of operating leaves the door open to unsafe working conditions which are 

harmful to workers themselves, and further increase the likelihood of catastrophic events like 

derailments when the skeleton staff has as little as a few minutes to inspect each rail car. 

It is of utmost important that the STB moves quickly to strengthen our rail system overall and 

specifically to improve service to agricultural shippers before railroad capacity again becomes an 

urgent, national issue. This work must also ensure the safety of rail workers and communities. 

An Equal Opportunity Employer 
 

THE HONORABLE KAREN HEDLUND 

Page 2 

Specifically, I encourage the board to urgently and expeditiously: 

x Move forward on the open proceedings on private railcar use and emergency service 

orders. The shipper petition on private rail car use would improve incentives and restore 

balance around the railroads’ use of private cars and demurrage. The Board’s proposed 

changes to the emergency service rules will help provide relief in times of severe 

disruptions, which have become more frequent. 

x Move forward on reciprocal switching. Following the Board’s approval of the merger 

between Canadian Pacific Railway and Kansas City Southern Railway, ensuring adequate 

industry competition is more important than ever. The Board’s ongoing oversight of the 

highly consolidated rail industry is key to this objective. 

x Provide clarity on the railroads’ common carrier obligation. The railroads must 

provide reasonable service upon reasonable request. However, without clarity on what 

these terms mean and how the policy will be enforced, railroads are able to make 

unilateral decisions, with little regard for shipper needs. For example, a few observations 

raise important questions about whether railroads are meeting their obligation: first, UP’s 

use of embargoes to manage congestion and, also, the multiple cases brought to the Board 

where a shipper’s service was cut from 5 to 3 days per week. 

x Collect additional first-mile/last-mile (FMLM) service data. USDA appreciates the 

additional data the Board has been collecting as part of its monitoring. However, USDA 

encourages STB to significantly expand that data collection to cover additional 

commodities and provide more granular geographic data. Agricultural shippers have 

continually reported, to USDA, distinct service issues affecting specific regions of the 

country. More granular commodity and geospatial FMLM data will significantly improve 

visibility into those issues. 

More broadly, the railroads should not be able to continue to operate without buffer for 

unexpected demand, make historic profits, and engage in enormous stock buybacks, all while 

providing subpar service to agricultural shippers and disregarding safety. STB can and should 

counteract these negative trends in rail transportation by increasing competition and improving 

oversight with enhanced data. The Board should also ensure the railroads balance their focus on 

shareholders with their duty to provide high-quality common carrier rail service to the Nation. 

Sincerely, 

THOMAS J. VILSACK 

Secretary 
Office of the Secretary 

Washington, D.C. 20250 

May 12, 2023 

THE HONORABLE PATRICK FUCHS 

Member 

Surface Transportation Board 

395 E Street, SW 

Washington, DC 20423 

Dear Member Fuchs: 

Following up on my letter from a year ago, I would like to express my sincere appreciation for 

the Surface Transportation Board’s (STB or Board) efforts over the past year and share my 

continued encouragement for immediate and continued action. 

When I wrote the Board about rail service issues in March 2022, rail service was, in many ways, 

as poor as it had ever been. I was pleased to see the Board act swiftly by hosting our Deputy 

Secretary at a hearing on rail service deterioration, opening a proceeding to revise its procedures 

for expedited relief for service emergencies, and considering rules around railroads’ use of 

private cars. I was also encouraged by the Board’s collection of more service data, your 

December hearing on Union Pacific Railroad’s (UP) increased use of embargoes, and especially 

the Board’s final rules to streamline rate review in small cases. I know this work was done under 

your existing limited resources and I commend the Board and its staff for this incredible volume 

of work. 

Unfortunately, while rail service has improved from its worst levels last year, it remains 

inadequate and unreliable for many agricultural shippers. There is more work to be done. 

The delays and unpredictability seen in rail service are partly the result of the railroads’ embrace 

of precision-scheduled railroading (PSR) and its drastic reductions in workforce and assets to 

reduce operating ratios at the expense of service. As USDA has long expressed, the PSR 

operating model does not leave sufficient buffer in labor and assets for railroads to be able to 

handle unexpected spikes in demand, such as those seen over the past few years. And, as we’ve 

seen recently, this way of operating leaves the door open to unsafe working conditions which are 

harmful to workers themselves, and further increase the likelihood of catastrophic events like 

derailments when the skeleton staff has as little as a few minutes to inspect each rail car. 

It is of utmost important that the STB moves quickly to strengthen our rail system overall and 

specifically to improve service to agricultural shippers before railroad capacity again becomes an 

urgent, national issue. This work must also ensure the safety of rail workers and communities. 

An Equal Opportunity Employer 
 

THE HONORABLE PATRICK FUCHS 

Page 2 

Specifically, I encourage the board to urgently and expeditiously: 

x Move forward on the open proceedings on private railcar use and emergency service 

orders. The shipper petition on private rail car use would improve incentives and restore 

balance around the railroads’ use of private cars and demurrage. The Board’s proposed 

changes to the emergency service rules will help provide relief in times of severe 

disruptions, which have become more frequent. 

x Move forward on reciprocal switching. Following the Board’s approval of the merger 

between Canadian Pacific Railway and Kansas City Southern Railway, ensuring adequate 

industry competition is more important than ever. The Board’s ongoing oversight of the 

highly consolidated rail industry is key to this objective. 

x Provide clarity on the railroads’ common carrier obligation. The railroads must 

provide reasonable service upon reasonable request. However, without clarity on what 

these terms mean and how the policy will be enforced, railroads are able to make 

unilateral decisions, with little regard for shipper needs. For example, a few observations 

raise important questions about whether railroads are meeting their obligation: first, UP’s 

use of embargoes to manage congestion and, also, the multiple cases brought to the Board 

where a shipper’s service was cut from 5 to 3 days per week. 

x Collect additional first-mile/last-mile (FMLM) service data. USDA appreciates the 

additional data the Board has been collecting as part of its monitoring. However, USDA 

encourages STB to significantly expand that data collection to cover additional 

commodities and provide more granular geographic data. Agricultural shippers have 

continually reported, to USDA, distinct service issues affecting specific regions of the 

country. More granular commodity and geospatial FMLM data will significantly improve 

visibility into those issues. 

More broadly, the railroads should not be able to continue to operate without buffer for 

unexpected demand, make historic profits, and engage in enormous stock buybacks, all while 

providing subpar service to agricultural shippers and disregarding safety. STB can and should 

counteract these negative trends in rail transportation by increasing competition and improving 

oversight with enhanced data. The Board should also ensure the railroads balance their focus on 

shareholders with their duty to provide high-quality common carrier rail service to the Nation. 

Sincerely, 

THOMAS J. VILSACK 

Secretary 
Office of the Secretary 

Washington, D.C. 20250 

May 12, 2023 

THE HONORABLE ROBERT PRIMUS 

Member 

Surface Transportation Board 

395 E Street, SW 

Washington, DC 20423 

Dear Member Primus: 

Following up on my letter from a year ago, I would like to express my sincere appreciation for 

the Surface Transportation Board’s (STB or Board) efforts over the past year and share my 

continued encouragement for immediate and continued action. 

When I wrote the Board about rail service issues in March 2022, rail service was, in many ways, 

as poor as it had ever been. I was pleased to see the Board act swiftly by hosting our Deputy 

Secretary at a hearing on rail service deterioration, opening a proceeding to revise its procedures 

for expedited relief for service emergencies, and considering rules around railroads’ use of 

private cars. I was also encouraged by the Board’s collection of more service data, your 

December hearing on Union Pacific Railroad’s (UP) increased use of embargoes, and especially 

the Board’s final rules to streamline rate review in small cases. I know this work was done under 

your existing limited resources and I commend the Board and its staff for this incredible volume 

of work. 

Unfortunately, while rail service has improved from its worst levels last year, it remains 

inadequate and unreliable for many agricultural shippers. There is more work to be done. 

The delays and unpredictability seen in rail service are partly the result of the railroads’ embrace 

of precision-scheduled railroading (PSR) and its drastic reductions in workforce and assets to 

reduce operating ratios at the expense of service. As USDA has long expressed, the PSR 

operating model does not leave sufficient buffer in labor and assets for railroads to be able to 

handle unexpected spikes in demand, such as those seen over the past few years. And, as we’ve 

seen recently, this way of operating leaves the door open to unsafe working conditions which are 

harmful to workers themselves, and further increase the likelihood of catastrophic events like 

derailments when the skeleton staff has as little as a few minutes to inspect each rail car. 

It is of utmost important that the STB moves quickly to strengthen our rail system overall and 

specifically to improve service to agricultural shippers before railroad capacity again becomes an 

urgent, national issue. This work must also ensure the safety of rail workers and communities. 

An Equal Opportunity Employer 
 

THE HONORABLE ROBERT PRIMUS 

Page 2 

Specifically, I encourage the board to urgently and expeditiously: 

x Move forward on the open proceedings on private railcar use and emergency service 

orders. The shipper petition on private rail car use would improve incentives and restore 

balance around the railroads’ use of private cars and demurrage. The Board’s proposed 

changes to the emergency service rules will help provide relief in times of severe 

disruptions, which have become more frequent. 

x Move forward on reciprocal switching. Following the Board’s approval of the merger 

between Canadian Pacific Railway and Kansas City Southern Railway, ensuring adequate 

industry competition is more important than ever. The Board’s ongoing oversight of the 

highly consolidated rail industry is key to this objective. 

x Provide clarity on the railroads’ common carrier obligation. The railroads must 

provide reasonable service upon reasonable request. However, without clarity on what 

these terms mean and how the policy will be enforced, railroads are able to make 

unilateral decisions, with little regard for shipper needs. For example, a few observations 

raise important questions about whether railroads are meeting their obligation: first, UP’s 

use of embargoes to manage congestion and, also, the multiple cases brought to the Board 

where a shipper’s service was cut from 5 to 3 days per week. 

x Collect additional first-mile/last-mile (FMLM) service data. USDA appreciates the 

additional data the Board has been collecting as part of its monitoring. However, USDA 

encourages STB to significantly expand that data collection to cover additional 

commodities and provide more granular geographic data. Agricultural shippers have 

continually reported, to USDA, distinct service issues affecting specific regions of the 

country. More granular commodity and geospatial FMLM data will significantly improve 

visibility into those issues. 

More broadly, the railroads should not be able to continue to operate without buffer for 

unexpected demand, make historic profits, and engage in enormous stock buybacks, all while 

providing subpar service to agricultural shippers and disregarding safety. STB can and should 

counteract these negative trends in rail transportation by increasing competition and improving 

oversight with enhanced data. The Board should also ensure the railroads balance their focus on 

shareholders with their duty to provide high-quality common carrier rail service to the Nation. 

Sincerely, 

THOMAS J. VILSACK 

Secretary 
Office of the Secretary 

Washington, D.C. 20250 

May 12, 2023 

THE HONORABLE MICHELLE SCHULTZ 

Member 

Surface Transportation Board 

395 E Street, SW 

Washington, DC 20423 

Dear Member Schultz: 

Following up on my letter from a year ago, I would like to express my sincere appreciation for 

the Surface Transportation Board’s (STB or Board) efforts over the past year and share my 

continued encouragement for immediate and continued action. 

When I wrote the Board about rail service issues in March 2022, rail service was, in many ways, 

as poor as it had ever been. I was pleased to see the Board act swiftly by hosting our Deputy 

Secretary at a hearing on rail service deterioration, opening a proceeding to revise its procedures 

for expedited relief for service emergencies, and considering rules around railroads’ use of 

private cars. I was also encouraged by the Board’s collection of more service data, your 

December hearing on Union Pacific Railroad’s (UP) increased use of embargoes, and especially 

the Board’s final rules to streamline rate review in small cases. I know this work was done under 

your existing limited resources and I commend the Board and its staff for this incredible volume 

of work. 

Unfortunately, while rail service has improved from its worst levels last year, it remains 

inadequate and unreliable for many agricultural shippers. There is more work to be done. 

The delays and unpredictability seen in rail service are partly the result of the railroads’ embrace 

of precision-scheduled railroading (PSR) and its drastic reductions in workforce and assets to 

reduce operating ratios at the expense of service. As USDA has long expressed, the PSR 

operating model does not leave sufficient buffer in labor and assets for railroads to be able to 

handle unexpected spikes in demand, such as those seen over the past few years. And, as we’ve 

seen recently, this way of operating leaves the door open to unsafe working conditions which are 

harmful to workers themselves, and further increase the likelihood of catastrophic events like 

derailments when the skeleton staff has as little as a few minutes to inspect each rail car. 

It is of utmost important that the STB moves quickly to strengthen our rail system overall and 

specifically to improve service to agricultural shippers before railroad capacity again becomes an 

urgent, national issue. This work must also ensure the safety of rail workers and communities. 

An Equal Opportunity Employer 
 

THE HONORABLE MICHELLE SCHULTZ 

Page 2 

Specifically, I encourage the board to urgently and expeditiously: 

x Move forward on the open proceedings on private railcar use and emergency service 

orders. The shipper petition on private rail car use would improve incentives and restore 

balance around the railroads’ use of private cars and demurrage. The Board’s proposed 

changes to the emergency service rules will help provide relief in times of severe 

disruptions, which have become more frequent. 

x Move forward on reciprocal switching. Following the Board’s approval of the merger 

between Canadian Pacific Railway and Kansas City Southern Railway, ensuring adequate 

industry competition is more important than ever. The Board’s ongoing oversight of the 

highly consolidated rail industry is key to this objective. 

x Provide clarity on the railroads’ common carrier obligation. The railroads must 

provide reasonable service upon reasonable request. However, without clarity on what 

these terms mean and how the policy will be enforced, railroads are able to make 

unilateral decisions, with little regard for shipper needs. For example, a few observations 

raise important questions about whether railroads are meeting their obligation: first, UP’s 

use of embargoes to manage congestion and, also, the multiple cases brought to the Board 

where a shipper’s service was cut from 5 to 3 days per week. 

x Collect additional first-mile/last-mile (FMLM) service data. USDA appreciates the 

additional data the Board has been collecting as part of its monitoring. However, USDA 

encourages STB to significantly expand that data collection to cover additional 

commodities and provide more granular geographic data. Agricultural shippers have 

continually reported, to USDA, distinct service issues affecting specific regions of the 

country. More granular commodity and geospatial FMLM data will significantly improve 

visibility into those issues. 

More broadly, the railroads should not be able to continue to operate without buffer for 

unexpected demand, make historic profits, and engage in enormous stock buybacks, all while 

providing subpar service to agricultural shippers and disregarding safety. STB can and should 

counteract these negative trends in rail transportation by increasing competition and improving 

oversight with enhanced data. The Board should also ensure the railroads balance their focus on 

shareholders with their duty to provide high-quality common carrier rail service to the Nation. 

Sincerely, 

THOMAS J. VILSACK 

Secretary