The effect of the agricultural exemption on regulated common motor carriers

Abstract

Purpose: The purpose of this study is to inform the reader of the problem which has and still does exist in out transportation system. Special consideration is given to (1) the expansion of the exemption, (2) the commodities carried by exempt carriers, (3) the operations of exempt carriers, and (4) the effect exempt carriers have had on the business of our regulated common motor carriers. Methods: The methods used to obtain data for this study were (1) intensive library work, (2) writing to government bodies such as the Interstate Commerce Commission and the Department of Agriculture, and (3) writing to trucking and farm organizations for information. Findings: From the evidence presented in this study, the following findings appear in order: 1. The intent of Congress was to provide the farmer and the rancher with a low cost, highly flexible form of transportation. 2. The agricultural exemption has been expanded beyond the intent of Congress through legislative changes and liberal court interpretations. 3. Grain represents the largest tonnage of any commodity hauled by exempt carriers, and vegetable represent the largest number of hauls. 4. It is unlikely that many large firms will develop in the exempt carrier industry. 5. Trip-leasing is the most common violation by an exempt carrier. 6. Exempt carriers represent the greatest safety hazard on the American highway. 7. The agricultural exemption has caused an increase in private carriage. 8. Increase in private carriage and illegal trucking operations has caused the regulated motor carriers to lost large volumes of traffic and freight revenue. 9. Loss in traffic and freight revenue has forced some regulated motor carriers out of business and caused others to increase their rates. The increase in rates has caused an increase in private carriage. 10. The end result of increases in private carriage and illegal trucking has been a weakening of our national transportation system.