By Daren Coppock, president and CEO of the Agricultural Retailers Association
Farmers and ag retailers operate on razor-thin margins, so even a small, artificial cost increase can have a big impact. As the Surface Transportation Board considers the proposed merger of Union Pacific and Norfolk Southern, we at the Agricultural Retailers Association have serious concerns about how this merger would affect our members and the agribusiness sector as a whole.
ARA proudly represents more than 5,000 ag retail locations across the United States, many of which rely on safe, consistent rail service to operate. Ag retailers supply farmers and ranchers with products and services such as seed, nutrients, crop protection products, feed, equipment, technology and more.
ARA members range in size from small, family-held businesses to large companies and farmer-owned cooperatives with many outlet stores. Right now, four railroads (including UP and NS) already control 90% of freight traffic. The voices of our many members agree that when rail service is dominated by just a few players, they hold the power to set terms that work for them — not for the shippers and customers who depend on rail to move agricultural commodities, fertilizer, ag chemicals, fuel and other essential supplies. That imbalance drives up costs and threatens the reliability of our country’s entire supply chain.