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Proposed rail merger adds to ag consolidation concerns

The vice president elect with the National Corn Growers Association says the proposed merger of two major rail companies is another example of consolidation impacting agriculture.

“When the Surface Transportation Board started with this, there were 30 class one railroads and we’re down to six.”

Bill Leigh, who farms in north-central Illinois, says he’s worried about what the proposals to combine Union Pacific and Norfolk Southern will do to transportation costs.

“I’m sure it’ll be beneficial to the railroads, but there’s between $15 and $20 billion in cash that goes along with this merger.”  He says, “Somewhere they’re going to want to recoup that, who’s going to pay for it? And it’s probably the consumer.”

He tells Brownfield it’s becoming a common theme.

“We’re sitting here with the third or fourth year of losses in row crop farming, and we see no reduction on our input costs.”  He says, “Our cycle is completely out of touch. Farmers don’t make money, usually prices come down on inputs, and we’re not seeing that.”

Leigh says he’s encouraged that federal authorities have announced investigations into consolidation within the fertilizer market, and wants due diligence done before any decision is made on the proposed rail merger.  

Brownfield spoke with Leigh at the 2026 Illinois State Fair.

AUDIO: Bill Leigh – NCGA