Farm Groups Oppose Union Pacific-Norfolk Southern Merger

Illinois and North Dakota agricultural groups urge federal regulators to reject or strictly condition the proposed railroad merger.

Updated on Nov. 13, 2026 in Agriculture

Farm Groups Oppose Union Pacific-Norfolk Southern Merger

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The Illinois Farm Bureau, representing more than 70,000 farmers, has submitted a letter to the Surface Transportation Board opposing the Union Pacific-Norfolk Southern merger. The Association of North Dakota Agribusiness has also filed comments with the board opposing the deal.

Why it matters

Farm groups argue that many agricultural shippers are served directly by only one railroad, so reduced competition could raise costs and threaten rail service reliability. The outcome could shape how freight rail consolidation is weighed against the interests of grain and agricultural shippers nationwide.

The Illinois Farm Bureau represents more than 70,000 farmers, and its Nov. 13 letter to the Surface Transportation Board opposes the merger. Union Pacific does not directly serve North Dakota, a fact the state's agribusiness group raised in its comments, and the outcome of the board's review remains unknown.

The players

Surface Transportation Board

The federal agency that reviews and decides on proposed rail mergers and other interstate surface transportation matters in the United States.

Illinois Farm Bureau

A state farm advocacy organization representing more than 70,000 farmers in Illinois on policy and regulatory issues.

Association of North Dakota Agribusiness

A trade group representing country grain elevators and other agricultural businesses operating in North Dakota.

The details

Illinois Farm Bureau President Philip Nelson wrote to the board citing concerns about reduced competition, higher costs and risks to service, and said strong, measurable and enforceable conditions should be imposed if the merger is approved. The Association of North Dakota Agribusiness, which represents country grain elevators and other agricultural businesses, dated its comments Nov. 11 and cited worries about competition, transportation costs and rail service reliability.

Nov. 11: Association of North Dakota Agribusiness dates its comments to the board.
Nov. 13: Illinois Farm Bureau sends its letter to the Surface Transportation Board.
Thursday: North Dakota comments are posted on the Surface Transportation Board website.

Market Landscape

The board's review of the Union Pacific-Norfolk Southern merger falls under its statutory authority over rail consolidation, and farm groups are asking it to weigh shipper competition as part of that process. Their filings show agricultural shippers, who are often served by only one railroad, becoming a central point of contention in the review.

Farmers and grain shippers who rely on a single railroad could face higher freight costs or service disruptions if the merger proceeds without strong conditions. The board's decision will determine whether those shippers gain competitive options or lose them.

The takeaway

Agricultural shippers who depend on rail should watch the Surface Transportation Board's ruling, since its conditions could affect freight costs and service for farm goods across the country.