Office of the Secretary

Washington, D.C. 20250

An Equal Opportunity Employer

March 30, 2022

Hon. Martin Oberman Hon. Michelle Schultz

Chairman Vice Chairman

Surface Transportation Board Surface Transportation Board

Hon. Patrick Fuchs Hon. Robert Primus

Member Member

Surface Transportation Board Surface Transportation Board

Hon. Karen Hedlund

Member

Surface Transportation Board

RE: Rail Services Issues Affecting Agriculture

Dear Chairman Oberman, Vice Chairman Schultz, and Members Fuchs, Primus, and Hedlund:

The U.S. Department of Agriculture (USDA) writes to request urgent action to improve rail service for 

agricultural commodities in general, and particularly for critical livestock feed markets. The Surface 

Transportation Board’s (STB or Board) weekly service metrics show signs of deteriorated rail service, 

and a number of concerning issues were raised in a March 24 letter from the National Grain and Feed 

Association (NGFA). From equipment shortages to congestion, disruptions to agricultural shippers 

have become a constant, and current rail service disruptions are at a breaking point as railroads have 

cut assets in locomotives and crews and focused on operating ratios and profitability.

The grain and feed industry are experiencing significant issues affecting agriculture at rail-served 

origins and destinations, and other West Coast stakeholders are describing the situation as a complete 

collapse of rail service. For example, because of a lack of outbound train service, some grain elevators 

report they are unable to purchase new grain from farmers. Flour and animal feed mills have reported 

shutdowns because they could not source grain. Communications from industry suggest that some 

livestock operations project an inability to feed their animals by this time next week, if not earlier. 

These disruptions pose critical threats to American agriculture broadly, and domestic meat and poultry 

production in particular.

Given the high cost of disruptions to producers and agricultural stakeholders alike, USDA urges the 

Board to take immediate action to improve service. USDA supports recommendations that the Board 

obtain plans from the railroads to improve the current service situation and weekly updates from them 

to ensure they follow through with their plans. USDA also supports the recommendation to collect 

annual service assurance plans from the railroads.
An Equal Opportunity Employer

Recommended Board actions include:

• Move forward with Ex Parte (EP) 767 and collect first-mile/last-mile data. 

• Collect more frequent and granular service data in EP 724 than is currently collected. 

• Move forward with EP 768 to allow owners of private railcars to assess delay charges on the 

railroads for inefficient use of cars. Shippers have reported trains waiting to be picked up for 

more than a week.

• If conditions continue to worsen, use the authority, given by the STB Reauthorization Act of 

2015, to investigate the cause and impact of the service issues, especially in light of railroads’ 

shift to precision scheduled railroading and their significant cuts in train and engineer crews, 

and the effects these changes have had on the railroads’ common carrier obligation.

• Finalize a reciprocal switching rule in EP 711 that provides shippers with relief in the form of 

an alternative rail option in the face of poor service from their incumbent railroad.

More generally, it is important to point out that the current shortage for feed related to poor rail service 

is not a new phenomenon or limited just to feed. Over the past few years, USDA has consistently 

heard from shippers of poor rail service, and we have shared those concerns through various comments 

on behalf of the agricultural community.

As an immediate step, USDA asks that the STB use any available authorities to restore adequate 

service for agricultural shippers, including by suspending increases to rates and additional fuel 

surcharges. I also ask that you investigate whether demurrage is being unjustly applied to rail 

customers without any recourse for railroads not making new, or failing to meet, existing 

commitments. The railroads should not be allowed to continue to raise rates, charge additional fees, all 

while providing inadequate service and failing to meet their common carrier obligation.

USDA appreciates the Board’s urgent attention to the concerns raised in this letter.

Sincerely,

Thomas J. Vilsack

Secretary