A proposed transcontinental railroad merger is raising questions about the impact of further consolidation on agricultural shippers. Soy Transportation Coalition Executive Director Mike Steenhoek said transportation is essential to connecting agricultural production with customers. “For farmers to be profitable, whether soybeans or grain farmers, it’s not just a function of growing a crop, and it’s not just a function of having demand for that crop. A third element that’s very critical is being able to connect supply with demand.” Steenhoek said fewer handoffs between railroads could improve efficiency, but reduced competition could also mean higher rates and poorer service for agricultural customers.
