Heitkamp Announces Agreement to Move Forward with Major Grain Facility in Verona

Press Release

U.S. Senator Heidi Heitkamp today announced a final deal on an acceptable shipping rate between Burlington Northern Santa Fe (BNSF) and Red River Valley & Western (RRV&W), enabling about 400 farmers in southeastern North Dakota to more easily transport their crops via rail at a lower cost.

During the 15 months of negotiations, Heitkamp pressed BNSF and RRV&W to come to terms on an agreement, bringing leaders from both sides to the table on multiple occasions to find a productive path forward that supports North Dakota's farmers.

The agreement will allow James Valley Grain (JVG) to build a new grain elevator in Verona. The new shuttle-loading facility will fill the void of a facility that shut down in Verona in 2009, which created a major need for grain services in nearby communities. The new facility will offer more resources for North Dakota farmers, create good-paying jobs in the area, enable growers to effectively market their crops, and make sure high volumes of crops reach sale destinations throughout the country and the world. The facility will have a storage capacity of 3 million bushels of grain and will be able to move about 20 million bushels per year.

"This deal is a win-win for everyone involved -- it helps farmers sell their crops and saves them money, puts short-line railroads in a strong financial situation moving forward, and enables BNSF to transport grain where it needs to go," said Heitkamp. "And by building the new grain elevator in Verona, hundreds of area farmers will be able to affordably get their crops to market. BNSF and Red River Valley & Western both came to the table to meet the needs of farmers in the region, and I greatly appreciate their willingness to work together. Today's announcement is a big step, and I'll keep working closely with all parties to make sure the agreement is implemented properly. I look forward to seeing the success it will bring to hard-working North Dakotans."

After pressing the heads of BNSF and RRV&W to come together and reach an agreement since April 2013, Heitkamp expressed the importance of such a deal to the Surface Transportation Board in February. Over the course of the past year, Heitkamp has on several occasions met with senior BNSF officials -- including Executive Chairman Matt Rose and BNSF Chief Executive Officer Carl Ice -- pressing them on the need to reach an agreement with RRV&W. Additionally, Heitkamp has pressed the leadership at RRV&W to find agreeable terms for the short line to carry grain to the main line operated by BNSF.

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