By Jamie Martin
Farmers across the United States are raising concerns about a proposed merger between Union Pacific and Norfolk Southern railways. The deal, valued at $85 billion, would create a large coast-to-coast rail network covering 43 states.
While the merger may expand the rail system, experts believe it could reduce competition. Many farmers depend on rails to move crops such as corn, soybeans, and wheat. With fewer rail providers, growers may have limited choices and less control over shipping costs.
Agricultural economists highlight that transportation expenses are already increasing. Costs related to transport, storage, and marketing are expected to reach $14 billion in 2026. Any further increase could place additional financial strain on farmers.
The American Farm Bureau Federation has analyzed the proposal and raised concerns about its long-term impact. The organization notes that farmers already have limited flexibility when it comes to transportation. “When that pressure disappears, history shows that farmers do not ship less — they get paid less,” the report explains.
Rail remains essential for moving bulk commodities, especially in regions far from waterways or processing centers. In 2024, railroads transported millions of tons of agricultural products, making it a critical part of the food supply chain.
Alternative options are not always practical. Trucking over long distances increases costs, while barge transportation is only available in certain locations. This makes farmers more dependent on rail systems.
The merger could also reduce system flexibility during disruptions, increasing risks for the supply chain. Over time, higher transportation costs may be passed on to consumers through increased food prices.
Due to these concerns, the American Farm Bureau Federation has opposed the merger, emphasizing the need to maintain fair competition and protect farmers from rising costs.
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Categories: National