The National Farmers Union is urging the Surface Transportation Board to reject the proposed Union Pacific (NYSE: UNP)–Norfolk Southern (NYSE: NSC) merger, arguing that further rail consolidation would weaken competition and raise transportation burdens for family farmers.
In a statement, NFU President Rob Larew said the proposed combination risks repeating the effects that agricultural shippers have associated with earlier railroad mergers.
“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.”
NFU represents more than 220,000 family farmers and ranchers nationwide and advocates on agricultural, trade, energy, competition, conservation and rural-development issues.
The organization said the STB’s review should focus on preserving rail competition and protecting agricultural shippers, consumers and the broader 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.
NFU said farmers are already navigating high production-input costs, uncertain trade policy and elevated transportation expenses. It warned that a merger that further reduces rail competition could leave captive or limited-choice shippers facing higher rates and less dependable service.
“Rail mergers that reduce competition leave shippers paying high rates for unreliable service, adding strain that family farmers cannot afford,” the organization said.
The group’s opposition aligns with its broader transportation and competition policy agenda, which calls for enforcement of U.S. antitrust laws to prevent additional rail mergers and for expanded reciprocal switching as a means of increasing rail-to-rail competition.
Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Read more articles by Stuart Chirls here.
Read more:
STB tabs former BNSF exec as economics director, adds senior adviser
Union Pacific begins battery-electric locomotive testing in Southern California
Intermodal rail powers up with 7% gain for latest week
Next phase for autonomous railcar technology in commercial service testing
