WASHINGTON – National Farmers Union (NFU) today announced its opposition to the Union Pacific and Norfolk Southern (UP/NS) merger, calling on the Surface Transportation Board (STB) to reject the application that would give a single railroad company control of nearly half of all U.S. rail traffic and further shrink an already over-consolidated industry.
“History has shown us that when railroads consolidate, family farmers pay the price,” said NFU President Rob Larew. “Decades of mergers have left farmers with fewer options, higher rates, and less reliable service. 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.”
Family farmers are already facing immense financial pressure including high input costs, unpredictable trade policies, and elevated transportation costs. Rail mergers that reduce competition leave shippers paying high rates for unreliable service, adding strain that family farmers cannot afford.
NFU’s grassroots policy priorities call for further reforms:
- Giving the STB the authority to address captive shipping and devise actionable mechanisms that hold railroads accountable for incorporating unreasonable rates increases without appropriate rate change notices.
- Enforcing U.S. antitrust laws to break up monopolistic railroads and prevent any new mergers.
- Establishing reciprocal switching within, and for an appropriate distance outside of terminals to encourage rail-to-rail competition.
- Authorizing a maximum rate for a movement to a captive shipper and authorizing, when petitioned, the removal of agreement provisions that prevent short-line railroads from delivering traffic to any railroad.
- Rail policy that holds railroads responsible for the losses caused by delayed rail car deliveries.
