Farm groups across Iowa and the country are raising concerns about a proposed merger between Union Pacific Railroad and Norfolk Southern, arguing it could ultimately hurt farmers rather than help them.
The deal, valued at roughly $85 billion, would reduce the number of major freight railroads in the United States from six to five. Supporters claim the merger would streamline operations and improve efficiency, potentially lowering shipping costs. However, many in agriculture aren’t convinced those savings would make their way down the supply chain.
According to an economist at Iowa State University, consolidation at any level of the supply chain tends to raise red flags for farmers, who rely heavily on competitive transportation options to keep costs manageable.
Leaders with the Iowa Farm Bureau say they are skeptical that the proposed merger would benefit producers. Instead, they worry it could limit competition and give rail companies more control over pricing, leaving farmers with fewer options and potentially higher shipping expenses.
The proposal has already faced a setback. Earlier this year, the Surface Transportation Board rejected the initial application, citing incomplete information. Union Pacific has indicated it plans to submit a revised version soon.
State and national officials, including Brenna Bird and Mike Naig, are urging regulators to take a close look at the potential impacts. Meanwhile, the American Farm Bureau Federation has formally opposed the merger, warning it could weaken competition and increase financial pressure on farmers already facing tight margins.
