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Illinois will join Soybean Transportation Coalition

<b>By TIM ALEXANDER<br>
Illinois Correspondent</b> </p><p>

BLOOMINGTON, Ill. — The Illinois Soybean Assoc. (ISA) announced it will join six other soybean organizations in a new coalition that aims to improve U.S. transportation systems for the soybean industry.</p><p>
The Soy Transportation Coalition (STC) seeks to develop a course of action to solve current and impending transportation challenges facing the industry. In joining forces with the STC, the ISA pledged to commit resources to help narrow the disparity in shipping costs soybean producers face compared with other industries that rely on rail service, among other issues important to producers.</p><p>
“With river, rail and road options, Illinois is a transportation hub for soybeans,” said David Hartke, chairman of the ISA.</p><p>
“It is important for us to market our crop here and abroad and the STC has soybean growers’ best interests in mind. We are confident the STC will continue to work towards flexible and efficient transportation options for our products.”</p><p>
The American Soybean Assoc. and the United Soybean Board are backing the STC’s efforts, and the National Grain and Feed Assoc. along with the National Oilseed Processors Assoc. serve as ex-officio members of the STC’s board of directors.</p><p>
“Given the makeup of the STC, our voice will be leveraged both on a local level and a national level - both of which are crucial if we are to see any significant improvements in our transportation system,” STC executive director Mike Steenhoek told Farm World in August, speaking form STC’s headquarters located at the Iowa Soybean Assoc.’s building.</p><p>
According to the U.S. Soybean Export Council, the U.S. Government Accountability Office (GAO) reported in 2006 that the benefits of deregulating the railroad industry under the Staggers Act of 1980 were not distributed evenly among commodity groups.</p><p>
The GAO stated that while railroads reduced shipping rates for commodities such as coal by as much as 35 percent, rates charged for grain shipments increased by 9 percent.</p><p>
The STC maintains that the cost of transporting soybeans to customers, often $1 to $2 per bushel according to the USDA, is reducing soybean producer profits and competitiveness.</p><p>
To learn more about the STC, see their website at www.soytransportation.org

12/12/2007