Policy Updates: First Coast-to-Coast Railroad Merger Proposed

According to one industry insider, combining the two railroads would decrease competition and raise rail rates.

ProFarmer - Policy News Markets Update.jpg
Pro Farmer Policy News Markets Update
(Lindsey Pound)
  • Nation’s First Coast-to-Coast Railroad Merger Proposed: The proposed $85 million merger of Union Pacific and Norfolk Southern, announced Tuesday, joins 50,000 miles of railroad tracks and would create a company that for the first time in history would control coast-to coast rail shipments.

    Union Pacific officials say the merger would speed up shipping and make supply chains more efficient and that is an argument proponents of the deal will lean on.

    Less handoffs do cut costs, admits Mike Steenhoek of the Soy Transportation Coalition, but he says combining the two railroads would also decrease competition and raise rail rates.

    This is not normally favorable for farmers and it could result in lower grain prices.

  • New Trade Pact with EU: The European Commission says that around $8.7 billion of U.S. agricultural exports will receive “better market access” to Europe through allocation of tariff-rate quotas under a new trade pact.

    President Donald Trump and European Commission President Ursula von der Leyen in Scotland on Sunday outlined contours of an agreement to soften the tariff blow Aug. 1. Under the deal, U.S. tariffs on most EU exports will be capped at 15% -- lower than the 30% Trump threatened – and the sides committed to reducing agricultural trade frictions, although details were sparse.

  • USDA SNAP Privacy Lawsuit: A coalition of 21 states and Washington, D.C. filed a lawsuit Monday against the U.S. Department of Agriculture after the federal agency told states to turn over the detailed, personal information of food assistance applicants and their household members.

    The USDA has told states they have until July 30 to turn over data about all applicants to the Supplemental Nutrition Assistance Program, or SNAP, over the last five years, including names, Social Security numbers, birth dates and addresses. Last week, the agency broadened the scope of information it is collecting to include other data points, including immigration status and information about household members.

    USDA has suggested states that do not comply could lose funds.

  • U.S. Dairy Industry Calls for Action Against Disruptive Trade Practices: When it comes to global dairy trade, ensuring fair competition and market access for U.S. dairy producers remains a significant challenge. This complexity was brought to light during a recent testimony before the U.S. International Trade Commission (USITC) by Jaime Castaneda, executive vice president for policy development and strategy for U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF), and Will Loux, senior vice president for global economic affairs. Their discussions highlighted the pressing need for the U.S. government to address international policies that disrupt markets and harm American dairy interests.
  • Omaha Meatpacking Company Struggles to Continue Operations After ICE Raids: For more than a decade, Glenn Valley’s production reports had told a story of steady ascendance — new hires, new manufacturing lines, new sales records for one of the fastest-growing meatpacking companies in the Midwest. But, in a matter of weeks, production had plummeted by almost 70 percent. Most of the work force was gone. Half of the maintenance crew was in the process of being deported, the director of human resources had stopped coming to work, and more than 50 employees were being held at a detention facility in rural Nebraska.
  • USDA Disaster Assistance for Virginia Farmers: U.S. Secretary of Agriculture Brooke L. Rollins today announced additional U.S. Department of Agriculture (USDA) assistance to help producers in the Commonwealth of Virginia recover from Hurricane Helene. Secretary Rollins signed a block grant agreement with the Virginia Department of Agriculture and Consumer Services (VDACS) that provides recovery assistance for Virginian farmers. Virginia is the second state to receive this disaster aid. Last week, Secretary Rollins announced the first disaster block grant in Florida.

    In this agreement, VDACS is receiving $60.9 million in funding to administer a program covering infrastructure, timber, and plasticulture losses in addition to market losses and future economic losses. This funding is part of the $30 billion disaster assistance relief effort authorized by the American Relief Act, 2025. USDA is working with 14 different states, including Virginia, to develop and implement block grants to address the unique disaster recovery needs for each state.

  • FDA and USDA Take On Ultra-Processed Foods: The U.S. Food and Drug Administration and U.S. Department of Agriculture are accelerating federal efforts to address the growing concerns around ultra-processed foods and the current epidemic of diet-related chronic disease that is plaguing America. The agencies are announcing a joint Request for Information (RFI) to gather information and data to help establish a federally recognized uniform definition for ultra-processed foods—a critical step in providing increased transparency to consumers about the foods they eat.