December 24, 2025

Historic Rail Merger Application Filed

Two railroad companies submitted a comprehensive application to the Surface Transportation Board requesting approval to combine two major freight railroads into what would be the first transcontinental railroad in America. Union Pacific and Norfolk Southern filed the request late last week, representing what could be a landmark development in the U.S. They’re proposing to create a unified rail network across the nation from coast to coast. Freight Waves reports that the almost 7,000-page application gives a specific explanation on how the combination would enhance competition throughout the freight industry while delivering public benefits to their customers, employees, and communities across the country. The merger agreement, which outlines that Union Pacific is acquiring Norfolk Southern, was put in place on July 29, 2025, setting the stage for the regulatory application. The move isn’t without critics, as it has drawn opposition from trade groups, unions representing engineers and track workers, and rival carrier BNSF.

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USDA Has Lost 18 Percent of its Workforce

The USDA has received a lot of criticism for the way it handled reductions in its workforce after President Trump took office for his second term. Feedstuffs says, by some estimates, the department has lost as many as 21,000 employees through reduction-in-force measures, the Deferred Resignations Program, and through other means. The Office of the Inspector General released a report examining the staffing levels across the agency for the first half of this year. After analyzing available data, the OIG found that between January 12 and June 14, 2025, USDA lost a total of 20,306 employees during that time. That’s a loss of 18 percent of its total workforce of 110,384 people on January 11. Some agencies and states fared worse than others. Rhode Island had the most losses at 38 percent of its agency workforce. Kentucky had the fewest losses at 12 percent. 

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Reaction to Proposed Railroad Merger

The Fertilizer Institute released a statement in response to the application submission with the Surface Transportation Board requesting approval of a merger between the Union Pacific and Norfolk Southern railroads. “The Fertilizer Institute relies heavily on rail and many shippers already operate with limited transportation options, increasing costs, and continued service challenges, all with a ‘take-it-or-leave-it’ approach from railroads,” the statement said. “Our priority is a rail system that provides reliable service and a balanced relationship between carriers and carload shippers, with accountability for systemic rail service failures and a rate review process that’s efficient, timely, and economical.” The Institute also said that while it’s still reviewing the filing, it’s “difficult” to see how any coast-to-coast merger would improve this imbalance or meet the standard set out in the Surface Transportation Board’s merger rules. “Railroads hold all the cards, and larger mergers only stack the deck,” the Institute added. **********************************************************************************
Callahan is the New Chief Agricultural Negotiator

The Office of the U.S. Trade Representative welcomed Julie Callahan as its new Chief Agricultural Negotiator. The U.S. Grains and BioProducts Council applauded the news, saying, “She’s a seasoned professional with years of experience in sensitive trade negotiations and will continue to be a great advocate for U.S. agriculture.” Other agricultural groups like the National Cattlemen’s Beef Association reacted positively to the announcement. “President Trump has made it a priority to sign new trade deals and open new markets to high-quality American beef, and we look forward to working with Ambassador Callahan,” NCBA said. The National Sorghum Producers Council also lauded the move, noting that Callahan’s confirmation comes at an important moment for U.S. ag. “Her experience and leadership will be critical as we work to strengthen existing markets and pursue new opportunities for U.S. farmers,” said NSP Chair Amy France, a farmer from Kansas. 

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Agricultural Exports Contributed $362.4 Billion to the U.S. Economy in 2023

U.S. farm and food product exports create a lot of value and generate economic activity within and outside of the agricultural sector. In general, increased exports of agricultural products lead to higher demand for transportation services, packaging materials, and the additional employment and activities required to ship exports. In 2023, the value of U.S. ag exports, comprising commodities and food products, reached $175.5 billion. In turn, these exports generated an additional $186.9 billion in economic activity. Exports of bulk, unprocessed commodities like soybeans and corn, valued at $74.2 billion, generated an additional $66.2 billion in economic activity in 2023. Including the value of the exports themselves, U.S. agricultural exports generated a total economic output of $362.4 billion in 2023. Put another way, every $1 of U.S. agricultural products exported generated a total of $2.06 of domestic economic activity, on average. 

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U.S., Indonesia to Sign Trade Deal in January

Talks on a tariff and trade deal between Indonesia and the U.S. appeared to be on the brink of collapse earlier this month, but The Business Standard said the issues appear to finally be resolved. Indonesia’s chief trade negotiator said the two sides have agreed on “all substantial issues” for a tariff deal, paving the way for an agreement signing by the end of January. Indonesia’s senior economic minister said the main challenge was providing balanced market access for American products, and at the same time, market access for Indonesia into the U.S. market. “There is no factor that can hinder the signing of this Agreement on Reciprocal Trade,” said the minister. From January through October, trade between the two countries was worth $36.2 billion, with Indonesia carrying a $14.9 billion surplus. Data shows the U.S. is Indonesia’s second biggest export market. 

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