Evaluate STB rate methodologies for potential improvements and propose newmethodologies designed for small-case shippers

The Department of Agriculture's Agricultural Marketing Service awarded a $220,999 Cooperative Agreement to the University of Oregon on September 22, 2025, to evaluate Surface Transportation Board rate methodologies for potential improvements and propose new methodologies designed for small-case shippers under the Transportation Services program (CFDA 10.167).

The recipient will review the STB's existing rate methodologies—including the three-benchmark approach—for technical amendments, improvements, and automation to better fulfill the agency's statutory requirement to ensure that rail carrier rates are reasonable. The University of Oregon will propose new rate methodologies accessible to agricultural shippers that are practical, statutorily feasible, and technically correct, including possible automation. Through these objectives, the recipient will also propose additional actions the STB could implement to enhance underlying competition in agricultural and other less-than-unit-train rail-served markets.

Performance occurs in Oregon with an ultimate completion date of November 30, 2026. The Transportation Economics Division conducts research through cooperative agreements to identify gaps in agricultural transportation knowledge and recommend solutions in emerging and timely topics.

Specific objectives: 1) review STB'sexisting rate methodologies-such as three-benchmark-for technical amendments, improvements, and automation, thereby better fulfilling the agency's statutoryrequirement to ensure that rail carrier rates are reasonable; 2) propose new ratemethodologie(s) for smaller cases, that would be accessible to agricultural shippers, practical (including possible automation), statutorily feasible, and technically correct; and 3) through the course of completing objectives 1 and 2, propose additional actionsstb could implement that can enhance underlying competition in agricultural and otherless-than-unit-train rail-served markets.