OPINION: One railroad isn’t enough for Texas farmers

I’m not against big business or making things more efficient. But if Union Pacific and Norfolk Southern merge, farmers could lose a lot of leverage.

Roughly 95 percent of grain elevators get service from one railroad. So, when that railroad decides shipping costs more, we pay it. We can’t truck grain across long distances. We can’t wait for better rates. We ship when the grain’s ready, and we pay what they’re asking.

Public filings show that about 60 percent of Union Pacific’s profits come from shipping, where farmers have no real alternatives. Meanwhile, farm shipping costs have climbed steadily over the past 20 years while commodity prices haven’t. One company controlling nearly half the grain movements in the country will hurt us.

It’s no wonder the American Farm Bureau Federation is against the merger.

It’s common for things to break down during a complex merger integration. In 2013-2014, when rail congestion hit the Northern Plains, grain shipments backed up for weeks. Farmers lost roughly $100 million just from shipping delays. We were fortunate in Texas, but we knew we could be next.

The railroad executives say this merger improves service and efficiency. That’s possible. But I’ve seen these consolidations before, and the promised benefits don’t always reach farmers. What reaches us is higher costs and fewer options.

The Surface Transportation Board (STB) already rejected the companies’ initial application, but they’ll resubmit soon. Regulators must ask: Does this merger give farmers more choices or eliminate them? Does it increase competition or remove it?

I hope the STB listens to farmers. Because one railroad controlling how our grain gets to market isn’t good enough for Texas farmers.

Emilie Feyry’Natividad is a grape farmer, business owner, and former Republican candidate for Pecos County Judge.