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
The U.S. pork industry is staying vigilant in keeping its supply safe from foreign animal diseases like African Swine Fever.
Taiwan’s pledge to expand imports strengthens export prospects for U.S. row crops, livestock products, and specialty commodities, while the USDA’s broader trade push seeks to diversify farm markets globally.
“American soybean farmers—who are already reeling from your sweeping tariffs—deserve better.”
The shutdown is yet another hurdle for producers navigating a challenging year marked by high input costs, volatile markets, and uncertain trade conditions.
Farmers will need to closely monitor forecasts if the regulatory changes are implemented, as temperature cutoffs will replace fixed spray dates.
With China’s pullback, U.S. sorghum producers must broaden their export markets. Building connections now could help stabilize prices and demand for the upcoming larger crop.
Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.
Malone, Senior Director of Trade Execution at Bunge, emphasized the importance of spaces where women can engage in meaningful conversations about global trade, supply chains, and leadership opportunities.

Marion is a digital content manager for RFD-TV and The Cowboy Channel. She started working for Rural Media Group in May 2022, adding a decade of experience in the digital side of broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

While the U.S.-China framework for soybean trade is in place, Ohio farmer Chris Gibbs tells us he will believe it when he sees it.
Global nitrogen and phosphate prices remain high despite improved supply fundamentals, with limited Chinese exports and stronger fall applications tightening availability.
The Court may limit emergency tariff powers, complicating a key bargaining tool; ag could see shifts in input costs and export dynamics as China, Brazil, and India talks evolve.
David Klein with the American Society of Farm Managers and Rural Appraisers (ASFMRA) shares an end-of-harvest update and a peek at the farmland market in Central Illinois.
Host of RealAg Radio Shaun Haney discusses how the proposed reductions to agriculture programs in Canada’s new budget could affect research and support programs that farmers need.
Highly Pathogenic Avian Flu (HPAI) cases are rising. In the last week, seven commercial turkey, duck, and egg layer flocks were culled across five Midwest states and California.