Rail merger could force Alabama farmers out of business: op-ed

This is a guest opinion column

Farming across Alabama operates on razor-thin margins, where a single unexpected spike in costs or a breakdown in logistics can spell the end for a local producer. To stay afloat, our state's agricultural backbone relies entirely on a dependable, affordable, and efficient freight rail network.

The Importance of Rail for Alabama Producers

From poultry and livestock to peanuts, corn, and cotton, Alabama farmers depend on robust rail connections to transport their goods to the Port of Mobile. This infrastructure is not just a utility; it is a pillar of our state's economy, fueling billions of dollars in activity every year and allowing local products to compete on the global stage.

The Merger Threat

An $85 billion proposal by Union Pacific (UP) and Norfolk Southern (NS) to merge their operations threatens to dismantle this competitive advantage. If finalized, this deal would consolidate control over nearly half of the nation's freight rail, including over a thousand miles of Alabama track currently held by NS. For our farmers, this transition risks eliminating vital interchange points and slashing the bargaining power they once held as shippers.

As noted by the American Farm Bureau Federation, rail demand is largely inelastic. When competition is stifled, costs inevitably rise. Because Alabama’s producers have no viable alternatives to rail, they would be forced to absorb these expenses, a burden that threatens to drive many family farms out of the market entirely.

A History of Resilience

In my own District 37—covering Chambers, Lee, and Randolph counties—our farmers have a long history of overcoming adversity. When the boll weevil decimated the cotton industry in 1911, our producers didn't fold; they pivoted to peanuts. Today, that spirit of innovation remains, but farmers cannot simply out-innovate monopolistic pricing or unreliable service.

Action Needed

History has shown that in past rail consolidations, shareholders on Wall Street win while farmers pay the price. The Surface Transportation Board (STB) previously rejected the merger application, citing concerns over safety, rising costs, and a lack of competitive discipline. Despite the refiling by UP and NS, these fundamental issues remain unaddressed.

The economic stakes are high. When farmers suffer, the cost of groceries, energy, and housing increases for all of Alabama. I urge the STB to block any path that prioritizes corporate consolidation over competition. Our farmers deserve a rail system defined by accountability, not greed.

State Rep. Bob Fincher represents House District 37—which includes Chambers, Lee, and Randolph counties—in the Alabama State Legislature.