With a potential rulemaking at the U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) and Congress's need to pass a new highway bill before the old one expires May 31, this is poised to be a big year on the trucking front for the grain, feed and processing industry.
The rulemaking under consideration at FMCSA would increase the minimum levels of financial responsibility for motor carriers (liability coverage for bodily injury or property damage), and would increase financial responsibility for freight brokers and freight forwarders. Currently, there is a minimum of $750,000 in financial responsibility for each for-hire interstate general freight carrier. FMCSA's research report on Financial Responsibility Requirements for Commercial Motor Vehicles estimates an insurance premium cost of $5,000 per truck per year for $750,000 to $1 million in coverage.
As an example of the new minimum coverage levels that are being requested by advocates for higher coverage levels, a report issued by the Pacific Institute for Research and Evaluation recommends a new minimum of $10 million in coverage. FMCSA has published a notice seeking information on premium rates, crash compensation levels and timelines for a phase-in period of any proposed increase in minimum financial responsibility. In comments, which are due by Feb. 26, NGFA plans to ask FMCSA to consider the impact of any increase in financial responsibility on freight rates and prices received by sellers of agricultural commodities.
On the legislative front, Congress must address the federal Highway Trust Fund by the end of May to keep the fund from becoming insolvent. This may give Congress the opportunity to address additional truck transportation issues.
NGFA will work through its committees to identity trucking where meaningful legislative changes could be made. As such, NGFA established a task force of industry trucking experts and is seeking input from the Country Elevator and Finance and Administration Committees.
For questions or comments, contact Max Fisher, director of economics and government relations.Director of Economics and Government Affairs Max Fisher provides economic analyses and policy input on a wide range of legislative and regulatory issues affecting the grain, feed, grain and oilseed processing, and export sectors, including agricultural policy; international trade agreements; futures market regulation and measures designed to enhance customer protection; safety and environmental rulemakings; and rail and waterway transportation.
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