Proposed Norfolk Southern-Union Pacific Merger Goes Off the Rails

The Surface Transportation Board rejects the proposed Norfolk Southern–Union Pacific merger, prompting concerns from agricultural shippers about rail consolidation, service reliability, and higher transportation costs.

NASHVILLE, TENN. (RFD NEWS) — New details on the proposed rail merger between Norfolk Southern and Union Pacific. The Surface Transportation Board (STB) has rejected the initial application, citing missing key information.

The STB says the decision does not mean the merger is impossible. Both companies now have the opportunity to revise and resubmit their application. The initial paperwork was more than 6500 pages long. The STB says details on market share were missing, along with other contractual information.

Groups like the Soy Transportation Coalition (STC) have been watching the process since the merger was proposed. In a recent interview with RFD NEWS, STC Executive Director Mike Steenhoek says there are concerns across the ag spectrum about consolidation if that merger goes through.

“People point to the fact that this is not our first rodeo — we’ve had mergers, acquisitions, and consolidations within the rail industry for a number of decades,” Steenhoek explains. “What that does is it often results in higher rates, a decline in service, and, for agriculture and other industries, what you want is as many transportation providers competing for your business. That’s good for us, and when, all of a sudden, you start eliminating or reducing those transportation providers, you start changing that competitive balance away from the customer, agricultural shippers, in our case, or the railroad. So rightfully, there are a number of shippers who are very concerned about this.”

Leaders at Union Pacific say they have received more than 2,000 letters of support for the merger. STB says that while the application can be resubmitted, it will require another comprehensive review.

Related Stories
Justin Wheeler with the American Society of Farm Managers & Rural Appraisers joined us with insight into current farmland values and what to watch in the year ahead.
USDA Undersecretary for Trade and Foreign Agricultural Affairs Luke Lindberg joined us with a recap of the Malaysia trade mission and a look at USDA’s broader trade strategy moving forward.
Mike Steenhoek of the Soy Transportation Coalition shares how extreme winter weather is affecting the ag transportation network and what producers should keep in mind as conditions slowly improve.
Strong White House backing supports ethanol demand, but timing now hinges on Congress resolving procedural — at the same time as they push toward a spending bill to avert another federal government shutdown.
Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
Corn and soybean exports continue to anchor weekly inspection totals, with China maintaining a visible role, while wheat and sorghum remain more dependent on regional and seasonal demand shifts.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

Traders are keeping a close eye on China’s soybean purchases as markets track export sales, shipments, and progress toward the ‘magical’ 12 million ton target promised last year.
Leadership development and bipartisan engagement remain central to advancing agriculture’s priorities in 2026.
AFBF Economist Faith Parum provides analysis and perspective on the Farmer Bridge Assistance Program—what commodity growers should know and potential remedies for producers facing crop losses where that aid falls short.
In a post to social media, Trump said Venezuela will buy American agriculture products and will use the money from oil sales to make it happen.
Federal nutrition policy is signaling a stronger demand for whole foods produced by U.S. farmers and ranchers. Consumer-facing guidance favors animal protein, but institutional demand may change little under existing saturated fat limits.
Farmer Bridge payments are being used primarily to reduce debt and protect cash flow, not drive new spending. Curt Blades with the Association of Equipment Manufacturers joined us to provide insight into the ag equipment market and the factors influencing sales.