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Ag Retailers Association hopes rail merger is not approved

The organization representing more than 5,000 U.S. ag retail locations says the Union Pacific-Norfolk Southern merger should not happen.

Ag Retailers Association Senior Vice President Richard Gupton says, “We’re not really sure how that enhances competion.” He tells Brownfield the proposed merger would put nearly 50% of rail traffic in the hands of one company. “We’re worried about the major impact it would have on America’s agriculture industry, on rural communities, and the service, or potential lack of service that could happen because of this merger.”

Gupton says with consolidation, railroads have often left their captive shippers with higher rates, reduced service, and few options. “One example in the Midwest, we had a member where the railroad asked them to spend millions of dollars to upgrade their rail spur to their facility, and then, like a year later, they’re saying they’re going to try to cut off service to that facility.”

Gupton tells Brownfield the Ag Retailers Association is part of a stop-the-merger coalition, which includes the American Farm Bureau Federation, labor unions representing Union Pacific and Norfolk Southern employees, the National Industrial Transportation League (NITL), and two competing railroads.

Gupton says the Surface Transportation Board has delayed its decision until the railroads provide more information.

AUDIO: Richard Gupton with the Ag Retailers Association discusses the proposed Union Pacific-Norfolk Southern railroad merger with Brownfield’s Larry Lee