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Central Farm Service Commends Union Pacific – Norfolk Southern Merger, Highlighting Benefits for Agriculture

via Business Wire

Central Farm Service (CFS), a farmer-owned cooperative in Minnesota & Iowa, and long-time Union Pacific customer, announced its support for the proposed merger of Union Pacific Railroad and Norfolk Southern Corporation. CFS believes this combination – creating America’s first coast-to-coast railroad – will improve agricultural logistics by providing more efficient rail service from the Midwest to more markets nationwide. The merged railroad will connect over 50,000 miles of track across 43 states under one system, enabling single-line shipments of farm products to reach distant destinations faster and more reliably.

For agricultural shippers, the anticipated benefits are encouraging. By eliminating interchange delays between separate railroads, the unified network will expedite grain deliveries and reduce transit times on key routes. Currently, a load of corn or soybeans from Minnesota might switch carriers en-route to the Southeast or East Coast, adding complexity and days of transit, which ultimately make for less trade on those routes. With Union Pacific and Norfolk Southern combined, that same load can move end-to-end on one railroad, arriving at feed mills or processing plants with fewer handoffs and lower risk of delay. Likewise, inbound shipments of fertilizer and other farm inputs will travel more directly, helping CFS ensure timely supply for its members during critical planting and harvest seasons. Overall, a unified transcontinental railroad promises a dependable, cost-effective supply chain for agriculture – an industry where rail already handles over 3.2 million carloads of grain and oilseeds annually.

KC Graner, President and CEO of Central Farm Service, voiced enthusiasm for the merger’s potential: “Farmers depend on efficient rail service to get their crops to market and their inputs delivered on time. By uniting these rail networks, Union Pacific and Norfolk Southern are taking a logical step to improve agricultural logistics. We expect to see faster grain shipments, fewer delays, and better rail access. We believe this will help link our rural communities to more markets. In practical terms, that means our co-op can move Minnesota & Iowa corn and soybeans to customers on the Eastern Seaboard or Gulf Coast seamlessly and bring in fertilizer and feed ingredients from afar with less disruption. This merger will strengthen the farm supply chain and help us serve our growers even better. Central Farm Service commends the Union Pacific–Norfolk Southern merger and urges its approval so these benefits can become a reality.”

As a cooperative serving farmers across Southern Minnesota and Northern Iowa, CFS is dedicated to timely, reliable service in every facet of its operations – from grain marketing to agronomy, feed, and energy. The company views the UP–NS merger as a positive, forward-looking change that will enhance its rail shipments and support the broader agricultural economy. Central Farm Service joins many in the ag community in commending Union Pacific and Norfolk Southern for their vision and is optimistic that a unified transcontinental railroad will boost efficiency and growth for American agriculture.

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