Industry Data > Economic Data: RCAF
The Railroad Cost Recovery Factor is a forecast index of U.S. railroad expenses that is developed by the Association of American Railroads (AAR) and approved by the Board. It is published quarterly.
The Board's predecessor, the Interstate Commerce Commission (ICC), outlined the procedures for calculating the all-inclusive index of railroad input prices and the method for computing the rail cost adjustment factor in Railroad Cost Recovery Procedures, 1 I.CC.2d 207 served in 1984. 49 U.S.C. 10708 direct the board to publish both an unadjusted RCAF and Productivity-adjusted RCAF. The Board also decided to publish a second productivity-adjusted RCAF called the RCAF-5. Consequently, three indices are now filed with the Board by the AAR; the RCAF (Unadjusted), the RCAF (Adjusted), and the RCAF-5. The RCAF (Adjusted), reflects national average productivity changes as originally developed and applied by the ICC and is currently based on a 5-year moving average measure of productivity. The RCAF-5 reflects national average productivity changes as if a 5-year moving average measure of productivity had been applied consistently from the productivity adjustment's inception in 1989.