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
Strong balance sheets still matter, but liquidity, planning, and lender relationships are critical as ag credit tightens, according to analysis from AgAmerica Lending.
In a landmark ruling delivered in late 2025, the U.S. Supreme Court significantly narrowed the scope of the National Environmental Policy Act.
While short-term volatility remains a risk, softer ocean freight rates in 2026 could improve export margins.
Trade volatility and shifting export destinations increase marketing risk for producers heading into 2026.

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:

Corn and beef exports showed strong momentum, cotton sales surged, and soybean sales held steady, though China remains absent from the U.S. market.
Cheaper freight is helping exports move, especially corn, but weaker soybean demand looms large.
Disease risks remain a key factor to watch heading into fall.
American Farm Bureau Federation (AFBF) economist Danny Munch explains how the Emergency Livestock Relief Program application process differs from other USDA aid programs.
According to the National Council of Farmers Cooperatives (NCFC), President and CEO Chuck Conner says, there is only one other option besides addressing ag labor shortages.