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Agricultural Retailers Warn Against Union Pacific-Norfolk Southern Merger

Agricultural retailers representing over 5,000 locations nationwide have raised concerns about a proposed merger between Union Pacific and Norfolk Southern, citing potential rate increases and service deterioration. The Agricultural Retailers Association argues the combination would consolidate pricing power among four Class I carriers that already control 90% of rail freight traffic. Rail rates have climbed more than 40% over the past two decades when adjusted for inflation. This growth outpaces truck rate increases by roughly 70%. Fertilizer input costs such as anhydrous ammonia have surged more than 200% since the mid-2000s. While the carriers contend the merger would improve efficiency by eliminating rail car interchanges, agricultural shippers fear past consolidations have consistently reduced competition and negotiating leverage. The merger poses particular risks for captive shippers served by only one railroad. The group is urging the Surface Transportation Board to carefully evaluate the transaction's impact on the agricultural supply chain.