A Combined Union Pacific-Norfolk Southern Will Deliver Stronger Rail Service for America’s Farmers
● Reliable rail service is essential to American agriculture. During harvest, farmers and agricultural shippers need the capacity to move large volumes quickly and dependably to processors, manufacturers and ports.
● Single-line service will create a more direct connection from farms to markets. A combined Union Pacific–Norfolk Southern network will reduce railroad interchanges, improve shipment visibility and connect agricultural customers to nearly 100 ports.
● New customer commitments will provide additional safeguards. The July 27 filing expands competitive pricing opportunities for bulk unit trains and adds protections addressing rail access, service performance and accountability.
America’s rail network is critical to moving agricultural products from the nation’s heartland to processors, manufacturers and ports. From corn and soybeans to wheat, fertilizer and animal feed, rail provides sustainable long-haul capacity needed to support one of the world's largest agricultural economies.
That makes reliable freight rail service especially important during harvest, when large volumes must move within a compressed window. USDA transportation data shows that farm products are the fourth-largest category of rail freight by tonnage. This is especially true for farms located far from waterways, making rail the only transportation option that can move the tonnage harvested.
On July 27, Union Pacific and Norfolk Southern took another step toward strengthening that essential service. The companies submitted supplemental information to the Surface Transportation Board and added four new and expanded customer commitments to their proposed combination. For additional information on how this combination will create faster, more reliable shipping for America’s farmers, see HERE.
Building on the benefits of single-line service
The new customer protections reinforce the broader agricultural benefits described in the merger application.
Today, many long-distance agricultural shipments must be transferred between railroads before reaching their destination. Those interchanges can add time, handling and uncertainty. The proposed Union Pacific–Norfolk Southern combination will connect complementary western and eastern networks, creating a single-line rail option across the country.
For agricultural customers, that will mean:
- Fewer railroad interchanges and opportunities for delay
- One carrier accountable for a shipment from origin to destination
- Unified shipment visibility and customer service
- More direct access to domestic processors and consumer markets
- Connections to nearly 100 ports on the East, West and Gulf coasts
- Greater flexibility to respond to changing export demand
What does that look like in practice? Take a wheat shipment moving from Arkansas City, Kansas, to Camp Hill, Pennsylvania for example. By enabling more streamlined routing, the proposed combination will reduce transit times on the combined companies’ manifest grain lane by approximately 36 hours. For agricultural customers, improvements like these can help deliver more reliable service and keep products moving to customers and markets more quickly.
In addition, Feed & Grain recently highlighted the extension of Committed Gateway Pricing to bulk unit trains as well as the proposed alternative-service and rate-relief protections – issues with practical significance across the grain supply chain.
These benefits matter throughout the year, but their value becomes especially clear during harvest. When storage fills and crops need to move, predictable equipment, reliable service and faster connections will help protect the value farmers have spent an entire season creating.
Why dependable rail service matters to farmers
American agriculture depends on efficient transportation. According to the USDA Census of Agriculture, more than 1.9 million farms span 880 million acres, covering nearly 40% of the nation’s land. By combining a seamless transcontinental network with enforceable commitments on service, access, and accountability, Union Pacific and Norfolk Southern will provide farmers, producers, and agricultural shippers with a stronger, more reliable connection to markets across the country and around the world.
Learn more about Union Pacific and Norfolk Southern’s efforts to create America’s first transcontinental railroad HERE.