Railroad merger could increase costs for farmers, consumers

To the Editor:

The proposed merger between Union Pacific and Norfolk Southern would combine two of the nation’s largest railroads, a move that could lead to higher rates for our cherished farmers.

Freight rail is like any other market. When fewer companies are in control, customers lose leverage. Pennsylvania farmers already have limited options when it comes to moving crops and goods through freight rail, so a gigantic consolidation like the one that’s on the table could mean even fewer choices and therefore higher costs.

Increased transportation costs can also drive up prices for inputs and services across the agricultural industry, putting even more pressure on producers who are already struggling to make ends meet. If rate hikes come down on farmers because competition was squeezed, don’t be surprised when you’re paying higher prices at the grocery store.

The voice of our nation’s farmers, the American Farm Bureau Federation, are a hard no on this mega-merger. That’s saying something. Their concerns echo growing alarm among everyday farmers, business leaders and government officials at every level about the potential fallout of this consolidation.

The Pennsylvania State Grange is voicing their opposition to the merger. The Pennsylvania State Grange was established in 1873, ironically, to fight the same thing that was happening at that time.

The Surface Transportation Board must take a hard look at the real-world impacts on market competition when the companies refile their application. Corporate shareholders shouldn’t come ahead of the men and women who feed our country. If farmers lose, we all lose.

Wayne D. Campbell

Pennsylvania State Grange