The National Farmers Union is calling on the Surface Transportation Board (STB) to reject the proposed merger between Union Pacific and Norfolk Southern, warning that further consolidation in the U.S. rail industry could reduce competition and increase transportation costs for family farmers.
NFU President Rob Larew said the proposed combination could recreate problems agricultural shippers have experienced following previous railroad mergers. In the organization’s view, decades of consolidation have left many farmers with fewer transportation options, higher rates and less dependable rail service.
“History has shown us that when railroads consolidate, family farmers pay the price,” Larew said. “Decades of mergers have left farmers with fewer options, higher rates, and less reliable service.”
The National Farmers Union represents more than 220,000 family farmers and ranchers across the United States. Its policy work covers agriculture, trade, energy, competition, conservation and rural development.
NFU said the STB’s review of the proposed transaction should place the preservation of rail competition at the center of the process while protecting agricultural shippers, consumers and the wider food supply chain.
“The STB’s review of this application is an opportunity to instead put rail competition first and protect American farmers, shippers, and consumers from the harm further consolidation would bring to our transportation network and food supply chain,” Larew said.
The farmers’ organization also pointed to the broader economic pressures already facing agricultural producers. Farmers are dealing with elevated production-input costs, uncertainty surrounding trade policy and higher transportation expenses, NFU said.
Against that backdrop, the group warned that further reductions in rail competition could leave captive shippers and those with limited transportation choices exposed to higher rates and less reliable service.
“Rail mergers that reduce competition leave shippers paying high rates for unreliable service, adding strain that family farmers cannot afford,” the organization said.
NFU’s opposition to the proposed merger is also consistent with its broader transportation and competition policy agenda. That agenda calls for stronger enforcement of U.S. antitrust laws to prevent additional railroad mergers and supports expanding reciprocal switching as a way to strengthen competition between railroads.
For the organization, the STB’s decision represents an opportunity to address competition concerns in the rail network while considering the impact of consolidation on agricultural shippers, consumers and the food supply chain.
