Former U.S. Representative and Chairman of the House Agriculture Committee Mike Conaway is voicing strong opposition to the proposed merger between Union Pacific and Norfolk Southern, two of America’s largest freight railroads.
In a detailed statement released Wednesday (December 3rd), Conaway outlined concerns that such a consolidation would effectively create a coast-to-coast monopoly detrimental not just to agricultural producers but to wider market competition. He stressed this despite claims by the companies involved regarding operational efficiencies and cost savings, arguing these benefits were overstated in light of potential negative impacts.
“Combining two of the nation’s largest freight railroads… that’s not just bad news for farmers — it’s bad for rural economies across the Lone Star State,” Conaway stated. Texas, particularly with over 230,000 farms – more than any other state – is highlighted as being directly affected by this proposed consolidation.
Conaway warned of specific consequences: fewer bids for grain transport, slower turnaround times, and reduced service reliability – precisely what agricultural producers need most. He noted that while overall freight rates have fallen since deregulation in 1980, “specific mega-mergers… led to higher prices when competition disappeared.” The Government Accountability Office (GAO) and the Surface Transportation Board (STB) analyses both concluded that consolidation often allows dominant carriers to charge more.
“Even other rail carriers are sounding the alarm,” Conaway added. BNSF, another major Class I railroad, presented data showing a Union Pacific–Norfolk Southern merger would drive up shipping costs, reduce competition, and harm the broader U.S. economy.
Conaway emphasized that efficiency need not require merging competitors: “Railroads don’t need to merge to operate efficiently… Existing intermodal service agreements between major carriers already show that collaboration can improve freight movement without eliminating competition.”
He concluded by urging regulators to protect market fairness: “At a time when the administration is rightly focused on strengthening domestic manufacturing and food security, another rail mega-merger would move us in the wrong direction. If shipping costs rise and service falters… U.S. agriculture will lose ground.
The Surface Transportation Board must apply common sense,” Conaway stressed. “And it needs to utilize every tool available.”
