Farmrail System, Inc. is an employee-owned holding company for two Class III common-carrier railroads comprising "Western Oklahoma’s Regional Railroad." Farmrail Corporation (FMRC) has acted since 1981 as a lessee-operator for Oklahoma Department of Transportation, managing an 82-mile east-west line between Weatherford and Erick. An additional 89 miles, Westhom-Elmer, was purchased from the state in 2013 after 20 years of operation under lease. Another wholly owned affiliate, Grainbelt Corporation (GNBC), was formed in 1987 to purchase from Burlington Northern Railroad Company 178 miles of line linking Enid and Frederick. The parent company also has a joint-venture interest in New York’s Finger Lakes Railway Corp. (FGLK).
A rapidly declining rig count and prospect of an extended slump in regional drilling prompts adjustments in personnel and equipment. Temporary trainmen assisting with the three-year surge of sand traffic are being released, the locomotive fleet resized, and operating practices modified. This situation appears unlikely to change until price-depressing supply-demand imbalances in the international oil markets can be corrected.
Farmrail has benign Southwestern storage locations for up to 1400 railcars, from singles to unit trains. Interchange is off BNSF’s Avard-Sub line at Enid, Oklahoma.