Initial mediation efforts have been successful for the first rail rate dispute requiring action under the Alternative Dispute Resolution of the Montana Grain Growers, Montana Farm Bureau, and BNSF Railway.

The initial rate dispute was filed by a Shelby area producer and concerned wheat shipments from Shelby to Portland.

During the meeting, BNSF agreed that the shipping rate in Shelby was greater than was justified by current market conditions. As a result, the planned shuttle rate increase in Shelby will be reduced by $165 per car - which actually will lower the current rate from the Shelby shuttle by roughly $78 per car.

BNSF, Farm Bureau, and the Grain Growers have been informally mediating grain farmers' rail issues for the past five years, but agreed last January to establish a more formal process.

(November 2009) A rail rate complaint from a Shelby area producer has resulted in the first implementation of the Alternative Dispute Resolution Agreement established by the Montana Grain Growers, Montana Farm Bureau, and BNSF railway.

A steering committee formed by the agreement has reviewed the complaint and believes there's reason to proceed to the mediation process. The complaint stems from a scheduled freight rate increase scheduled to take effect on January 1st. The mediation will only concern grain shipped from the shuttle at Shelby to Portland.

Lola Raska, executive director of the Montana Grain Growers Association, explained, "They have proposed a rate increase for all of the shuttle facilities in Montana. We looked at rates from those facilities and found that they're in line. According to our agreement, we're only allowed to bring one case forward from one origin at a time. So, Shelby was a little out of line with the rest of the shuttle facilities. So, that's the case we're moving forward with."

The mediation will occur within the next 30 days; if it is not successful, the case will then move to arbitration.