Ag groups weigh in on merger

WASHINGTON — Two agriculture industry groups have told the Surface Transportation Board that they oppose the Union Pacific-Norfolk Southern merger, citing concerns over reduced competition, higher costs, and risks to service.

The Illinois Farm Bureau says it does not believe the application has established that the “claimed efficiencies and public benefits do not outweigh the risks to competition, service, and agricultural supply-chain resilience.”

In a Nov. 13 letter, IFB President Philip Nelson wrote, “Many agricultural shippers are served directly by only one railroad and depend on competition elsewhere in the rail network to provide routing options and help constrain rates. Further consolidation could reduce those options and weaken competitive pressure on rates and service.”

If the merger is approved, the IFB says the board “should impose strong, measurable, and enforceable conditions that preserve competition, protect service, and provide meaningful remedies for agricultural shippers.”

The Illinois organization represents more than 70,000 farmers.

North Dakota agribusiness group opposes merger

The Association of North Dakota Agribusiness, which represents country grain elevators and other agricultural businesses in the state, is opposing the UP-NS merger.

“The proposed transaction raises substantial concerns regarding competition, transportation costs, rail service reliability, and the economic interests of North Dakota grain shippers,” the group told the STB in comments dated Nov. 11 and posted on the board’s website on Thursday.

UP does not directly serve North Dakota. The group acknowledged the deal would not directly affect its members, but argued it could weaken the state’s competitiveness in domestic and export markets for shipments that rely on interchange with UP or NS.

— This article will be updated as additional agricultural organizations file comments with the STB. To report news or errors, contact trainsnewswire@firecrown.com.