Concerns Over Rail Merger: Protecting Farmers and Manufacturers

In America’s Heartland, work ethic and production are our exports. From family farms to factory floors, the work of our farmers, producers, and manufacturers keeps our nation moving. To feed and fuel America, these hardworking men and women rely on a freight rail system that moves goods efficiently, fairly, and at a competitive cost. When that balance slips, it’s rural America — not Wall Street — that pays the price.

That’s why the recent warning from Iowa Attorney General Brenna Bird about the proposed Union Pacific–Norfolk Southern merger should matter to everyone who grows, builds, or ships goods here. Her concerns echo what many producers already know: when railroads consolidate, the ripple effects hit the Heartland first and hardest.

We’ve seen the consequences of mega-mergers before. Past rail consolidation of this magnitude has shown that when fewer carriers control more territory, service doesn’t improve. It gets slower and less predictable. With fewer competitors, options disappear, and rates climb — squeezing producers already operating on tight margins tested by supply-chain disruptions, higher input costs, and volatile global markets.

For a farmer in Iowa, those disruptions aren’t abstract. Harvest seasons can’t wait for delayed trains, and ethanol plants requiring consistent rail service to maintain production schedules won’t run on unpredictable deliveries either. Iowa is the top ethanol-producing state in the nation, producing about 4.6 billion gallons of fuel ethanol annually, roughly 30% of total U.S. output. That production also generates over 10 million tons of high-protein co-products, including dried distillers grains (DDGs), a critical livestock feed ingredient sold domestically and exported abroad.

Much of this production leaves our state — and rail is the backbone of distribution. Billions of gallons of Iowa-produced ethanol move by rail each year to blending terminals across the country. The same rail network carries massive volumes of DDGs to livestock markets in the U.S. and to export terminals serving Mexico, Southeast Asia, and other rapidly growing feed markets.

Freight rail already moves a significant share of Iowa’s agricultural output. In recent years, Iowa railroads shipped over 63 million tons of freight outbound and received another 29 million tons, totaling roughly 92 million tons moved by rail annually — much of it agricultural commodities, biofuels, feed products, and inputs critical to farm production.

Because ethanol, DDGs, and bulk ag commodities depend heavily on rail, freight reliability is critical. A slowdown doesn’t just affect a single shipment — it cascades through the farm-to-fuel and farm-to-feed economy. Grain waits in storage longer, plants slow production, deliveries to fuel blenders are delayed, and feed shipments back up. That costs farmers revenue, tightens margins at plants, disrupts livestock feeders — and ultimately impacts consumers through fuel and food prices.

Manufacturing faces the same vulnerabilities. Iowa’s factories depend on timely, affordable shipments of inputs and finished goods. A freight delay doesn’t simply create inconvenience — it can halt production, jeopardize contracts, create revenue losses, and even force layoffs. In an economy that depends on keeping supply chains domestic, every lost hour in freight movement puts American workers at a disadvantage.

The stakes extend beyond any single industry. Iowa sits at the center of the nation’s food, feed, and fuel economy. When transportation costs spike or reliability drops, the impact doesn’t stop at our state borders. It shows up in grocery prices, construction materials, energy costs, and manufactured goods used across the country. A less competitive rail system ultimately translates into higher costs for American families.

The proposed merger must be evaluated with disciplined scrutiny. Any consolidation of this scale must demonstrate that it will improve service, expand capacity, and create tangible benefits for the shippers and Americans who depend on rail every day. Without those assurances, the financial strain will land squarely on communities already managing high costs and volatile markets.

Attorney General Brenna Bird is right to insist on a cautious, competitiveness-focused review. The Heartland’s strength depends on a rail network that works for producers, not against them. The question now is whether this merger supports that goal. If it cannot show — plainly and convincingly — that it does, then the Surface Transportation Board should stand with the men and women of America’s Heartland and ensure it does not move forward.

The men and women who feed and fuel this nation aren’t asking for special favors. They never do. They’re asking for a fair deal — and a freight system that keeps transportation costs predictable and service reliable. That’s not too much to ask from the people who keep America running.

–  Tom Buis, CEO, American Carbon Alliance

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