Proposed Rail Merger Threatens Farmers' Access

Union Pacific and Norfolk Southern plan $85 billion merger, raising concerns over reduced competition and higher prices for agricultural shippers

Mar. 12, 2026 at 1:47am

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A proposed $85 billion merger between freight rail giants Union Pacific and Norfolk Southern has raised concerns among agricultural shippers who rely on rail to transport bulk commodities like grain, oilseeds, and fertilizer. The combined company would control roughly 44% of total originated carloads across major commodity groups and more than one-third of all grain rail movements nationwide, further consolidating an industry that has already seen significant concentration in recent decades.

Why it matters

For many agricultural regions, particularly those far from navigable waterways, rail is often the only viable transportation option. The increased market concentration resulting from this merger could reduce competition, leading to higher prices and less reliable service for farmers and food producers who have limited alternatives.

The details

The merger would create the first coast-to-coast Class I railroad in U.S. history, spanning roughly 50,000 route miles across 43 states. Proponents argue it would streamline operations and improve efficiency, but critics warn it would also eliminate key interchange points where shippers could previously bargain between the two railroads. Approximately 95% of grain elevators are already served by only one railroad, and the merged company would control a significant portion of the nation's grain rail movements.

  • The proposed merger was announced in March 2023.
  • The Surface Transportation Board is currently reviewing the merger proposal.

The players

Union Pacific

One of the largest freight railroad operators in the United States, with a network spanning the western two-thirds of the country.

Norfolk Southern

A major freight railroad serving the eastern United States, including the Midwest and Northeast regions.

Surface Transportation Board

The federal agency responsible for reviewing and approving mergers and acquisitions in the railroad industry.

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What’s next

The Surface Transportation Board is expected to make a decision on the proposed merger in the coming months, with input from agricultural stakeholders and other affected parties.

The takeaway

This merger highlights the ongoing consolidation in the freight rail industry and the potential risks it poses for agricultural shippers who rely on rail as a critical component of the supply chain. Policymakers and regulators will need to carefully weigh the potential benefits of operational efficiencies against the potential harms of reduced competition and increased market power.