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Abstract
An examination of the effects of deregulation and the performance of the Surface Transportation
Board (STB) under that deregulation usually includes an analysis of rail rates that have evolved
since implementation of the Staggers Act of 1980 (Staggers Act). This paper examines the rail rate
structure for agricultural commodities and compares it with rates for other commodities. Changes
in agricultural rail rates are evaluated relative to shipment size and distance shipped to understand
how they affect agricultural shippers. Railroads transferred costs to agricultural shippers and overrecovered
fuel costs with surcharges. Shippers question the reasonableness of rail rates in the light
of railroad revenue adequacy data.