Empty train tracks with field on both sidesUnion Pacific and Norfolk Southern have submitted a proposed merger for review by the Surface Transportation Board (STB), a move that would create the first coast-to-coast freight railroad in the US with 50,000 route miles. The companies argue the merger could improve efficiency by reducing rail handoffs, streamlining routes and improving service reliability. These changes could improve transit times and supply chain coordination, a boost for the ag economy.

However, agricultural groups and shippers have raised concerns that the merger could reduce competition, particularly in rural areas with limited rail access. 26% of U.S. grain is moved by rail. With fewer rail options, this could lead to higher shipping costs or reduced service levels, directly impacting farm profitability. Regulators will evaluate whether the merger meets strict public-interest standards, with the potential to significantly influence transportation costs and service for agriculture in the long term.

Read more on the potential rail merger and impact on agriculture.