The proposed merger of the Union Pacific and Norfolk Southern railways would leave farmers with fewer transportation options and vulnerable to shipping cost increases at a time when balance sheets are squeezed to the breaking point. American Farm Bureau Federation economists analyzed the proposed merger and said the risks are clear. “It would leave farmers more dependent on fewer railroads at a time when they already have almost no ability to walk away from higher costs or poor service,” said an AFBF Market Intel Report. “The merger doesn’t create new competition for agriculture.” The report also said the merger removes what little leverage remains by eliminating key routing and interchange options that currently help keep rates and service in check. The $85 billion merger would create the first coast-to-coast Class I Railroad in U.S. history. The system would span roughly 50,000 route miles across 43 states.
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