Industry Concerned About Rail Merger and Fertilizer Shipments

The fertilizer industry is worried about a proposed rail merger. Experts say it could reduce service options and raise transportation costs for farmers and suppliers.

Corey Rosenbusch said about 60% of fertilizer in the US moves by rail. Some delivery networks already depend on just one railroad. He said past mergers have caused higher costs and service problems. The industry fears these problems could get worse if the merger is approved.

Ammonia shipments are another concern. Liability issues moved ammonia from rail to trucks. This change increased transportation costs by 300%. Rosenbusch said ammonia should return to rail. He suggested using short-line railroads or agreements between big rail companies to make shipments safe and efficient.

Rosenbusch added that fertilizer is an important nutrient for crops. And any delays or higher costs could affect farmers’ production. Reliable rail service is needed to keep prices stable and ensure farmers get what they need on time.

The industry is asking the Surface Transportation Board to study the merger carefully. If it is approved, they want rules that keep service reliable. They also hope the merger does not reduce competition. Which could hurt smaller suppliers or farmers in rural areas.

The industry wants regulators to make decisions that protect both farmers and suppliers. They want to make sure fertilizer can move safely, quickly and affordably across the country.