The National Farmers Union, representing more than 220,000 family farmers and ranchers, is urging the Surface Transportation Board to reject the proposed Union Pacific (NYSE: UNP)–Norfolk Southern (NYSE: NSC) merger, arguing that another round of rail consolidation would weaken competition and raise transportation costs for agricultural shippers.

The stakes for farm-gate economics are direct. NFU President Rob Larew said the proposed combination risks repeating the effects agricultural shippers have linked to earlier railroad mergers, when carriers consolidated and shippers lost options.

"History has shown us that when railroads consolidate, family farmers pay the price," Larew said. "Decades of mergers have left farmers with fewer options, higher rates, and less reliable service."

A Competition-First Review

NFU said the STB's review of the application should center on preserving rail competition and protecting agricultural shippers, consumers and the broader food supply chain. The union frames the proceeding as a chance to reset policy rather than rubber-stamp consolidation.

"The STB's review of this application is an opportunity to instead put rail competition first and protect American farmers, shippers, and consumers from the harm further consolidation would bring to our transportation network and food supply chain," Larew said.

The commercial argument is straightforward. Farmers already face high production-input costs, uncertain trade policy and elevated transportation expenses, NFU said. A merger that further reduces rail competition could leave captive or limited-choice shippers paying higher rates for less dependable service — a cost pressure with little room to absorb at the farm gate.

"Rail mergers that reduce competition leave shippers paying high rates for unreliable service, adding strain that family farmers cannot afford," the organization said.

Policy Agenda Behind the Objection

The opposition is not an isolated filing. NFU's stance aligns with its broader transportation and competition policy agenda, which calls for two concrete measures: enforcement of U.S. antitrust laws to prevent additional rail mergers, and expanded reciprocal switching as a mechanism to increase rail-to-rail competition.

Reciprocal switching would matter most for the shippers NFU says are most exposed — those captive to a single carrier or with limited routing choices. For grain and other agricultural movements, where rail often competes with trucking only at a cost disadvantage over longer hauls, the loss of a competing Class I option effectively narrows the bargaining field.

For shippers and receivers across the agricultural supply chain, the filing signals that the STB review will face sustained pressure from shipper groups, not just from competing carriers. For UP and NSC, it adds a organized constituency of 220,000-plus producers to the list of parties the carriers must answer before the board.

The STB's ultimate decision on the application will shape both the competitive structure of the U.S. Class I network and the rate and service trajectory facing agricultural shippers for years to come.