In Alabama, agriculture does not stop at the farm gate. It depends on a complex transportation network that connects farms, forests, and processing facilities to markets far beyond our state’s borders. Freight rail is a critical link in that network, moving fertilizer, feed, and other vital farm supplies in and agricultural products out on tight timelines. When rail service works, rural communities grow. When it fails, farmers feel it first and consumers are not far behind.
That is why the proposed merger between Union Pacific and Norfolk Southern deserves careful and deliberate review, particularly from an agricultural perspective.
The first major decision from the Surface Transportation Board (STB) should give stakeholders some reassurance. The STB ruled recently that the companies’ merger application was incomplete and requested additional information. That decision deserves recognition. A deal of this magnitude should meet a very high bar, and the STB was right to insist on a full and accurate record before moving forward.
The STB’s Major Merger Rules exist for a reason. Decisions that affect rail competition, service reliability and pricing have far-reaching consequences for farmers, manufacturers and consumers. The burden is on the applicants, not the public or regulators, to prove that their proposal serves the public interest. By rejecting an incomplete filing, the STB demonstrated that oversight is working as intended.
While this decision is a setback for the railroads, it does not mean the merger is finished. Union Pacific and Norfolk Southern are likely to submit another application, and if accepted, the formal review process would begin. That means the STB’s work is far from over.
If approved, this merger would combine two of the nation’s largest railroads and concentrate enormous market power into fewer hands. Together, the companies would control roughly 40% of the U.S. freight rail system, including significant shares of agricultural commodities and inputs. For many Alabama farmers who already have limited rail options, reduced competition could mean higher rates and less reliable service.
Agriculture depends on timing and consistency. Fertilizer must arrive before planting. Feed must move on schedule. Harvested crops and forest products must reach processors and ports without delay. Past rail consolidations have shown that service disruptions, congestion, and higher costs often follow when competition is reduced. Those costs do not stop with the railroads. They are passed down the supply chain and eventually show up as higher prices for food, housing, and everyday goods.
The merger application must prove that it will not only protect competition but enhance it. That is a high standard to meet, especially at a time when America’s supply chains are already under strain and farmers are facing rising input costs and tight margins.
Alabama agriculture is not opposed to growth or innovation. Strong rail partners are essential to our economy. But strength comes from competition, accountability and reliability, not from excessive consolidation.
As the STB continues its review, it must maintain the same rigor and high standards it has shown so far. Farmers, shippers and consumers all have a stake in this decision. A competitive freight rail system is essential to keeping agriculture moving, prices stable and rural economies strong.
Rick Pate serves as Alabama Agriculture Commissioner.
The views and opinions expressed here are those of the author and do not necessarily reflect the policy or position of 1819 News. To comment, please send an email with your name and contact information to [email protected].
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