A privately owned, class II railroad, was denied a $2.8 billion dollar loan to upgrade 600 miles of track and construct 300 more, because a federal government, not known for its frugality, thought there was a high risk the money wouldn’t be paid back.
The intent of this upgrade was to boost the railroads ability to haul coal from Wyoming and even after completion, but even with the addition of the new track, the DM&E line would only make up a fraction of the total miles of track in Minnesota (4457 mi) and South Dakota (1884 mi).
So why are corn farmers acting like its the end of days?
South Dakota Corn Growers Association Executive Director Lisa Richardson was quoted by agriculture publication, Brownfield, as saying of the loan denial, “disappointing is the understatement.”
Richardson continued, “we all lost money yesterday.”
With a bushel of corn reaching record highs above $4 and shooting for $5, Richardson may not want to talk like that around a livestock or poultry farmer.
I can’t speak for Sen. Thune, a former DM&E lobbyist, but most of Minnesota’s Congressional delegation has called for improved rail systems to accommodate the burgeoning ethanol industry, including the chair of the House Transportation Committee, Rep. Oberstar.
The Star Tribune quotes Rep. Tim Walz as stating he would even support DM&E expansion if they reworked their plan and their focus.
“We need expanded rail travel, whether that’s a coal-based railroad or not, I’m not sure. But I can guarantee that we need an agricultural railroad,” Walz, D-Minn., said Tuesday. “I said if they change their focus, if they came about this thing a little differently, they would sure find an ally with me.”
While it may be true that “we all lost money yesterday,” DM&E lost out the most, and I can guarantee that they are not going to rollover and die away. The Corn Growers Associations are going to have to work with a willing Congress to find a financially sound way to improve our transportation systems, rather than relying on a small railroad to get a big handout at the taxpayers expense.
Not everything is subsidized, you know.