The Nationwide Farmers Union is urging the Floor Transportation Board to reject the proposed Union Pacific (NYSE: UNP)–Norfolk Southern (NYSE: NSC) merger, arguing that additional rail consolidation would weaken competitors and lift transportation burdens for household farmers.
In an announcement, NFU President Rob Larew stated the proposed mixture dangers repeating the results that agricultural shippers have related to earlier railroad mergers.
“Historical past has proven us that when railroads consolidate, household farmers pay the value,” Larew stated. “A long time of mergers have left farmers with fewer choices, greater charges, and fewer dependable service.”
NFU represents greater than 220,000 household farmers and ranchers nationwide and advocates on agricultural, commerce, power, competitors, conservation and rural-development points.
The group stated the STB’s assessment ought to concentrate on preserving rail competitors and defending agricultural shippers, customers and the broader meals provide chain.
“The STB’s assessment of this software is a chance to as a substitute put rail competitors first and shield American farmers, shippers, and customers from the hurt additional consolidation would convey to our transportation community and meals provide chain,” Larew stated.
NFU stated farmers are already navigating excessive production-input prices, unsure commerce coverage and elevated transportation bills. It warned {that a} merger that additional reduces rail competitors may depart captive or limited-choice shippers dealing with greater charges and fewer reliable service.
“Rail mergers that scale back competitors depart shippers paying excessive charges for unreliable service, including pressure that household farmers can’t afford,” the group stated.
The group’s opposition aligns with its broader transportation and competitors coverage agenda, which requires enforcement of U.S. antitrust legal guidelines to stop extra rail mergers and for expanded reciprocal switching as a method of accelerating rail-to-rail competitors.
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