Union Pacific-Norfolk Southern Combination Will Strengthen Agricultural Supply Chains
Key Takeaways:
- Agricultural businesses are backing the Union Pacific-Norfolk Southern combination. Support from ethanol and soybean processors reflects the value of more direct shipping routes, expanded market access and greater transportation efficiency.
- High diesel costs underscore the importance of efficient freight transportation. A seamless rail network will give agricultural shippers a competitive option for moving products across the country.
- Single-line rail service will strengthen agricultural supply chains. Eliminating unnecessary handoffs across approximately 10,000 existing routes will help producers move freight faster and more efficiently.
The Center Square highlights how rising diesel prices are increasing pressure on American farmers and why agricultural leaders see value in the Union Pacific-Norfolk Southern combination.
For America's farmers, every dollar spent moving agricultural products affects their bottom line. With diesel prices placing additional pressure on producers during the fall harvest, efficient freight transportation has become even more important.
The Union Pacific-Norfolk Southern combination will help address that challenge by creating America's first single-line transcontinental railroad, connecting agricultural producers to more markets through one integrated network.
As agricultural businesses evaluate the benefits of a stronger national rail system, support from organizations involved in ethanol and soybean processing demonstrates how improved rail connectivity will strengthen American agriculture.
Agricultural Businesses Recognize the Value of Better Connectivity
Ethanol producer POET Biofuels and Minnesota Soybean Processors have publicly supported the combination, citing opportunities to improve transportation efficiency and reach more customers.
For ethanol and distiller's grain producers, the combination will create a more connected transportation network to serve agricultural markets. Minnesota Soybean Processors also recognizes the value of improved access to customers in the Northeast, where demand for its products is growing.
The combination will deliver greater connectivity by linking Union Pacific's western network with Norfolk Southern's eastern operations, creating more direct routes for agricultural commodities and other essential goods.
Nebraska Gov. Jim Pillen has also endorsed the combination, emphasizing the importance of dependable transportation during harvest. Farmers must move crops within tight windows while responding to changing customer needs and export demand.
Fewer handoffs between railroads will help agricultural shippers meet those demands with more efficient service.
Rising Diesel Costs Highlight the Importance of Freight Efficiency
Transportation costs are particularly important as farmers face higher fuel expenses. National diesel prices are approximately $6.35 per gallon, compared with $3.66 at the same time last year.
The federal government's $8 billion Harvest Fuel Relief program further underscores the financial pressure facing agricultural producers during the 2026 crop year.
These expenses extend beyond farming operations. Moving harvested crops, transporting animal feed and delivering agricultural products to processors and customers all depend on efficient freight service.
The combination will transform approximately 10,000 existing routes from interline to single-line service, eliminating unnecessary transfers between railroads. Union Pacific and Norfolk Southern estimate that removing these handoffs will shorten transit times by 24 to 48 hours on affected routes.
The combined network is also projected to shift approximately 2.1 million truckloads annually from highways to rail, generating an estimated $3.5 billion in annual shipper savings.
These improvements will strengthen rail's competitiveness as a long-distance freight option and help agricultural businesses manage transportation costs.
A Stronger Network for American Agriculture
The benefits of an integrated rail network extend across the agricultural supply chain, connecting farms, processors, manufacturers and export markets.
By establishing single-line service between the East and West, Union Pacific and Norfolk Southern will simplify long-distance shipping and expand market access for agricultural businesses.
That means more efficient connections between America's agricultural heartland and customers across the country, including growing markets in the Northeast.
Support from POET Biofuels, Minnesota Soybean Processors and Gov. Pillen reflects the importance of those improvements to the agricultural economy.
For farmers and agricultural businesses managing higher input costs and increasingly complex supply chains, reliable transportation is essential to remaining competitive.
The Union Pacific-Norfolk Southern combination will strengthen that foundation with more direct service, fewer handoffs and greater access to markets across America.
Please review Union Pacific’s cautionary note regarding forward-looking statements.
