The National Farmers Union announced today its opposition to the Union Pacific and Norfolk Southern merger, urging the Surface Transportation Board to reject the application that would give a single railroad company control of nearly half of all U.S. rail traffic.
“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.”
Larew said the STB’s review of this application is an opportunity to put rail competition first and protect American farmers, shippers and consumers from the harm further consolidation would bring to the transportation network and food supply chain.
Family farmers are already facing immense financial pressure from 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.
The NFU’s grassroots policy priorities call for several reforms. The organization wants to give the STB the authority to address captive shipping and devise actionable mechanisms that hold railroads accountable for unreasonable rate increases without appropriate rate change notices.
The group also supports enforcing U.S. antitrust laws to break up monopolistic railroads and prevent any new mergers. Other priorities include establishing reciprocal switching within terminals and for an appropriate distance outside of terminals to encourage rail-to-rail competition.
The NFU wants authorization for a maximum rate for movements to captive shippers. When petitioned, the organization supports removing agreement provisions that prevent short-line railroads from delivering traffic to any railroad.
The group also backs rail policy that holds railroads responsible for the losses caused by delayed rail car deliveries.
