Industry groups bring questions for UP/NS Merger

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In light of the Dec. 19, 2025, Union Pacific Railroad (UP) merger application filing with the Surface Transportation Board, different industry groups are surfacing with their questions and challenges for the approval of a coast-to-coast railroad merger.   

Recently, the National Grain and Feed Association (NGFA) filed comments with the STB that underscore the incompleteness of UP’s application and encourages STB to request additional information before considering the application as complete. 

NGFA’s comments reference the Major Rail Consolidation Procedures that STB implemented in 2001, which requires a major merger application to contain specific and detailed information about how the applicants will not only preserve existing competition but enhance it, as well. This encompasses a plan to combat every competitive harm that could result from the merger, not just the loss of rail-to-rail competition.  

NGFA states, “while the application does outline three “commitments” to preserve and enhance competition, only one of the commitments – “a Committed Gateway Pricing program to extend the merger’s benefits to more customers” – enhances competition. Competitive harm is a serious consequence affecting not only rail shippers but entire sectors of the economy through the elimination of markets and destinations for products and services”. NGFA’s comments highlight the need for a more robust, detailed plan instead of the vague and generic discussion highlighted in UP’s application. 

Furthermore, in its comments, NGFA also pointed out that the proposed Service Assurance Plan is unsatisfactory. The plan doesn’t comply with the requirement for a process to compensate shippers for service failures and provides little information on back-up or contingency plans involving other rail carriers. Many in the grain industry have consistently urged for Service Level Agreements that guarantee minimum levels of service as a rail provider be instituted – past mergers have promised service assurance, only to have fallen well short of those promised increased levels of service and benefit to shippers.  

The U.S. Identity Preserved Alliance will host a webinar February 11 to present perspectives from industry associations and experts on the potential benefits and challenges of a proposed merger between Union Pacific and Norfolk Southern. Transportation Go, taking place April 8-9 in Chicago, will likely fall within the public comment period for the merger and will feature discussions among stakeholders supporting and opposing the proposal. 

New year, new name: SSGA is now United States Identity Preserved Alliance

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The Specialty Soya and Grains Alliance (SSGA) has changed the organization’s name to the United States Identity Preserved Alliance, reflecting the brand’s proactive leadership in advancing the U.S. Identity Preserved value chain and strengthening premium U.S. agriculture’s global reputation for quality, traceability and food safety. 

Since the organization’s creation in 2019, the U.S. Identity Preserved Alliance has served as the leading business alliance of identity preserved agriculture in the United States. In 2021, SSGA launched the U.S. Identity Preserved assurance protocol, a voluntary, third-party program that verifies companies’ identity preserved systems and ensures high-value crops maintain their integrity from the seed to end-user. The transition to the United States Identity Preserved Alliance provides a clearer message to global buyers and clarifies that the Alliance is a permanent steward of the assurance protocol. 

“The new name represents more than a change in branding. It solidifies that our focus is identity preserved agriculture,” said Randy Duckworth, U.S. Identity Preserved Alliance executive director. “Identity preservation is a growing priority as non-GMO, trait-specific and sustainably linked crops expand and industry demands more traceability. The United States Identity Preserved Alliance name can future-proof our organization.” 

The U.S. Identity Preserved Alliance will continue to advance key priorities established under SSGA, including transportation policy, container shipping and market development efforts. 

“Our new identity provides a stronger value position for the verified users using the U.S. Identity Preserved label in their packaging and marketing as a unified mark of quality assurance,” said Bryan Severs, U.S. Identity Preserved Alliance chair. “The change will also better align with our education and outreach and events, such as the upcoming Identity Preserved International Summit.“

In addition to the IP International Summit, which will take place March 22-24 in Ho Chi Minh City, Vietnam, “the U.S. Identity Preserved Alliance is holding its annual meeting April 7 and Transportation Go! conference on April 8-9, both in Chicago. 

About the United States Identity Preserved Alliance 

The United States Identity Preserved Alliance, formerly known as SSGA, is the business alliance of identity preserved agriculture in the United States. The U.S. Identity Preserved Alliance is the leading voice for the industry that delivers traceable, high-quality, variety-specific field crops to food markets worldwide. Its members include producers, processors, suppliers and transportation allies whose work ensures integrity throughout the supply chain. 

IP Crop Network- July update report

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The Midwest knows corn should be “knee high by the Fourth of July,” and extreme heat and humidity in parts of the region have helped blow past that marker. The weather has mostly helped crops grow quickly, while some areas have seen too much rain and are looking for a few dry days in the forecast. 

The Michigan soybean crop continues to make progress after passing the longest day of the year. The most advanced fields are now at R2 while others are still in vegetative stages. NASS reports that 25% of the crop is blooming, which compares to the five-year average of 19% at this point. Crop conditions are variable across the state, which has been affected by delayed planting and excess rainfall. NASS has the crop rated at 43% fair, 43% good and 5% excellent. Corn for the most part looks pretty good – first planted is not far from flag leaf while later planted is knee to waist high. 84% of the corn falls within the fair to good range. Wheat will be ready for harvest later this week or early next in the southeast part of the state, and 9% of the crop has been harvested statewide. The past couple of weeks have been very warm in most areas, but temperatures were cool before that, which slowed soybean growth. Stands are adequate in most areas. Post herbicide applications have been effective in controlling weeds but have caused more than normal crop response due to sunny and hot conditions during and after applications. Most crop responses were cosmetic with new growth being healthy and normal.  

Wisconsin’s soybean crop is progressing as expected in early July. Emergence is complete, and most fields have entered the blooming stage, with some beginning pod set ahead of the five-year average. June weather included steady rainfall and warm temperatures, supporting vegetative growth and timely crop development. Soil moisture levels are mostly within the adequate to surplus range, which has maintained crop health. This resulted in isolated areas that remain too wet for consistent access or late field applications. Crop condition ratings in Wisconsin are at 54% good to excellent, slightly below last year yet within typical ranges. Most fields display uniform canopy closure and nodulation. As the crop enters reproductive stages, scouting for white mold, sudden death syndrome and insect feeding will be necessary, especially under forecasted warm and humid conditions. Early indicators point to a potentially productive season if July weather conditions remain stable. Ongoing disease management, nutrient monitoring and timely fieldwork will continue to influence yield potential.  

Illinois is actually in a slight drought, at odds with the rest of the country. Over 30% of cropland in Illinois is short in moisture for both topsoil and subsoil. Precipitation has been really scattered, and areas that haven’t gotten much rain are showing it in the yards and ditches with dead grass. The lack of rain hasn’t hurt the beans and corn yet – they’re rooting well to get down to the nutrients – but cracks are beginning to show in the field. Beans in east-central Illinois are in R2 but getting close to R3 meaning a fungicide application. Farmers are prepping to get out in the field and do just that. Last week’s hot temperatures helped the corn to tassel, and 21% is tasseled throughout the state. 38% of beans are blooming, and 5% have started setting pods. Overall, Illinois is looking for a general rain to keep the plants healthy. 

Minnesota is extremely wet throughout most areas. Soil moisture conditions are over 90% in the adequate to surplus range for both topsoil and subsoil. While crops on tile ground are handling the water, some dry days are needed to let the beans get caught up to where they should be. Soybeans are about 5% below average when it comes to blooming but are overall mostly within the fair to good condition range. Corn is right on track with the 5-year average and falls mostly under the good condition range. There is more rain in the forecast for the next two weeks, so hopes are the forecast lessens on rain amounts. 

In North Dakota, the soybean crop is overall average. The weather over the past two weeks has been above average in both temperatures and moisture, which has resulted in good growth.. There are some areas that are dry, but so far, the soybeans are doing well in those areas. Soybeans are ahead of the five-year blooming average, sitting at 24%. 

SSGA’s IP Crop Network is published twice a month, highlighting growing conditions for identity preserved crops from different regions around the country. The reports include both firsthand accounts and data from the National Agricultural Statistics Service (NASS) weekly Crop Progress reports. 

SSGA applauds Senate passage of Ocean Shipping Reform Act

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The Specialty Soya and Grains Alliance applauds the United States Senate for passing its version of Ocean Shipping Reform Act.  

The bipartisan bill, co-sponsored by Sens. Amy Klobuchar (D-Minn.) and John Thune (R-S.D.), was passed by unanimous consent on Thursday. It would provide the Federal Maritime Commission with new, additional enforcement authority, ensure a more competitive global ocean shipping industry and provide relief to U.S. exporters, including SSGA-member agricultural exporters, who have struggled with significant supply chain disruptions over the past two years.

“Our members and others have been waiting for the hope of relief,” SSGA Executive Director Eric Wenberg said. “We have been consistently messaging that we’ve needed it, and we thank Sen. Thune and Sen. Klobuchar for their leadership on this matter. We believe in the Federal Maritime Commission’s ability to act on behalf of U.S. companies, and this reform will give FMC the tools it needs.” 

The U.S. House of Representatives passed its version of Ocean Shipping Reform Act in December. The bill now goes to conference committee to work out differences between the two bills.  

“This needs to pass the House and Senate conference with speed so a workable bill that provides relief gets sent to President Biden’s desk as soon as possible,” Wenberg said. 

The Senate bill provides FMC with additional enforcement tools to address unreasonable and unfair ocean carrier practices that have been harmful to U.S. exporters, including prohibiting carriers from unreasonably declining opportunities to U.S. exports. 

In a statement, Thune said, if passed, the act “would level the playing field for American farmers, exporters and consumers by making it harder for ocean carriers to unreasonably refuse goods that are ready to export at U.S. ports.” 

Added Klobuchar: “Congestion at ports and increased shipping costs pose unique challenges for U.S. exporters, who have seen the price of shipping containers increase four-fold in just two years, raising costs for consumers and hurting our businesses.” 

SSGA has supported passage of the Ocean Shipping Reform Act and was among the first groups to sound the alarm on the supply chain crisis in October 2020 and has continued to work on behalf of its members who export high-quality, Identity Preserved grains and oilseeds to help them meet the needs of their overseas customers. 

Lack of service, carrier cancelations, delays and rising freight rates and fees have “reached a condition critical situation,” said SSGA Chairman Rob Prather, chief strategic ambassador for Iowa-based Global Processing, affected business and have had a human toll, as well, causing hardships to logistics staffs, farmers, truckers, suppliers and customers both in the U.S. and abroad. 

“This isn’t just a global supply chain issue; it’s a global food supply security issue,” Prather said. 

For specialty ag exporters, supply chain delays remain major crisis

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Situation has reached ‘condition critical,’ in some areas SSGA chairman says

The holiday rush may be behind us, but the supply chain crisis has not subsided, especially for many U.S. agricultural processors located in the Upper Midwest.

Specialty Soya and Grains Alliance (SSGA) members who export high-quality, Identity Preserved grains and oilseeds continue to have major difficulties getting the equipment they need to fulfill their orders and meet the needs of their overseas customers.

Many containers bringing consumer imports to the U.S. continue to be sent back overseas empty instead of inland where ag processors have supplies ready to be shipped.

“Specialty agriculture needs containers for food grade exports due to a food supply chain that has reached a condition critical situation,” said Rob Prather, SSGA chairman and chief strategic ambassador for Global Processing, an Iowa-based company that grows, processes and supplies Identity Preserved, non-GMO soybeans and soy ingredients. “This isn’t just a global supply chain issue; it’s a global food supply security issue.”

The United States produces the finest agricultural products in the world, including Identity Preserved soybeans and specialty grains used around the globe by food and beverage manufacturers. SSGA members’ customers abroad specifically want these products. They’ve ordered them, and they’re waiting for them.

Specialty crops shipped via container are a growing market because of consumer demand around the world. The United States must be a reliable supplier, and that means the supply chain must work for everybody. It is wrong for shipping lines, which have been enjoying record profits throughout this crisis, to deny service to ag exporters. Some SSGA members have reported they are able to ship just 40-60% of their orders because of these continuing supply chain issues.

“Dialogue must continue, and SSGA is calling on companies throughout the supply chain to participate and find ways to reposition containers where possible and unclog this system, which is so vital to the global food supply,” said Eric Wenberg, SSGA executive director. “As an American, I am surprised that one our country’s top exports is air -– in the form of empty containers. Let’s slow down the system enough so we can put something in those empty containers.”

SSGA was among the first groups to sound the alarm on the supply chain crisis, and that was 15 months ago. Continued lack of service, carrier cancelations, delays and rising freight rates and fees have made the situation as difficult as it’s ever been, according to some SSGA members.

This hasn’t just affected business either. There are real people working to make sure every link in the supply chain remains strong, and the human toll has caused hardships to logistics staffs, as well as farmers, truckers, suppliers and customers.

SSGA supported the Ocean Shipping Reform Act that overwhelmingly passed the U.S. House of Representatives in December and is encouraging the Senate to move forward with the legislation, which would strengthen the Shipping Act and prohibit ocean carriers from unreasonably declining opportunities for U.S. exports.

More solutions are needed and fast. While time is of the essence, SSGA is hosting a shipping conference, Transportation Go, March 3-4 in Milwaukee, Wisconsin, and encourages anyone interested in solving this crisis to join us bring your best ideas to the table. More information at transportationgo.com.

Shipping News: Congress, media take notice of crisis

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The container shipping crisis continues to garner attention from government officials and the mainstream media alike. 

Last week, 24 U.S. senators, led by Amy Klobuchar (D-Minn.) and John Thune (R-S.D.) signed onto a letter to the Federal Maritime Commission (FMC), expressing bipartisan support for the FMC’s investigation into reports of unreasonable practices by ocean carriers that are posing challenges for ag exporters. 

On Tuesday, a similar letter from 111 members of the U.S. House of Representatives was delivered to the FMC. As well, a letter from senior Democrats and Republicans of the House Transportation Committee and the Coast Guard and Maritime Subcommittee was sent to FMC asking that immediate action take place “to ensure that ocean carriers are abiding by” the Shipping Act.   

Those actions came on the heels of a letter to President Joe Biden from SSGA and 70 other agriculture associations, urging intervention into the crisis. The letter was also sent to USDA Secretary Tom Vilsack, Transportation Secretary Pete Buttigieg, Council of Economic Advisors Chair Cecilia Rouse and FMC Commissioner Michael Khouri. 

SSGA’s announcement about the letter to the president with 70 other ag associations received coverage in Progressive Farmer/DTN, Red River Farm Network, FarmProgress and High Plains Journal, among others. 

Meanwhile, the New York Times picked up on the container crisis story over the weekend, illustrating how global disruptions of the container shipping system and shortage of containers and capacity are impacting supply chains in both directions – westbound and eastbound – in an article headlined ‘I’ve Never Seen Anything Like This’: Chaos Strikes Global Shipping. 

According to a Freightwaves story, the American Society of Civil Engineers gave U.S. infrastructure, which includes roads, highways, bridges, waterways, ports and rail system, an improved grade from four years ago, moving it up to a C- from a D+. The report card’s individual grades included a B- for ports (up from C+), D for roads (D), C for bridges (C+), B for rail (B) and D+ for inland waterways (D).

Competitive shipping: Container crisis dominates trade news

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Compiled by Bruce Abbe, SSGA Strategic Adviser for Trade and Transportation 

The leading international container shipping trade news media over the past week continued to focus on the current crisis in the global container shipping system. Here is an overview: 

“Trans-Pacific container system slows under Asia import surge” The Journal of Commerce (JOC) noted in a feature posted Friday that covered the proverbial waterfront on the issues at hand – the “… seemingly unending deluge of imports from Asia into North America …” clogging of the system and “slowing cargo through rail hubs including Chicago,” ever-climbing rate increases, and a reminder that this is occurring right before the traditional March start-up period of contract negotiations between shippers and ocean carriers. 

On a positive note, new services and efforts to find alternative gateways were also noted. 

“Logistics failures costing business: U.S. Exporters” Input from SSGA factored heavily in a separate JOC report that focused on challenges exporters are facing:   

(SSGA) which represents exporters of identity-preserved grains, peas, lentils, food-grade soybeans, and other agricultural products that move in containers, is hearing from its members that their problems start with a lack of communication from carriers when sailings are canceled, or departure times changed, or when vessels are overbooked and their shipments are “rolled” to subsequent voyages.  But the problems don’t stop there. 

“The ultimate kick in the teeth is when they charge you detention and demurrage for it,” (SSGA’s) Bruce Abbe said, referring to fees that carriers levy for containers that sit at the ports after free storage time elapses, or for the late return of equipment. Exporters say they are being charge for breakdowns in the supply chain that they did not cause.” 

Exporters have been urging ocean carriers to provide shippers with timely information, with adequate lead time, so that they can manage shipments and avoid costly unfair penalty fees. 

Agriculture Transportation Coalition Executive Director Peter Friedmann noted the issues at hand were addressed last year by the Federal Maritime Commission (FMC), which issued guidelines ocean carriers should follow to make such penalties serve the purpose of improving container flow system-wide. The carriers, he charged, “ignore” the FMC guidelines because they have turned detention, demurrage and other such penalties into profit moves, JOC reported.    

“Carriers are making money on these ancillary charges while their customers are losing their shirts,” Friedmann said. 

California wants FMC action, too California is also pressing the U.S. Federal Maritime Commission to take immediate action on the ocean shipping crisis to protect against the delays and rising costs buffeting the state’s huge agriculture export industry. 

California Lieutenant Governor Eleni Kounalakis laid out several possible steps in a letter to the FMC, including the suspension or reduction of detention and demurrage penalties and cancellation of “congestion surcharges”— another new onerous development at least one carrier is hitting shippers with. Better, timely communication with shippers and truckers on empty return times was another recommendation.   

“Immediate steps must be taken to help alleviate the multitude of challenges being experienced at the ports,” Kounalakis told the commissioners. 

New containers may not be enough to meet demand The head of one of the largest container leasing companies, CAI International, told Freightwaves last week the three large Chinese container manufacturing companies, which control 80% of the global trade, are not likely to produce enough containers for the industry to “build its way out of the equipment crisis.”     

They are “managing output to keep prices high,” he reportedly said. Other shipping industry consultants concurred.     

Hapag-Lloyd says COVID, congestion, container shortage make for ‘perfect storm’ German ocean carriers Hapag-Lloyd’s CEO Rolf Habben Jansen held a virtual global news conference Thursday, in which he explained developments that lead to the current crisis and what ocean carriers are dealing with. Coverage by Freightwaves. 

Logjam at LA/LB Last Wednesday there were as many as 62 ships anchored in San Pedro Bay off the ports of Los Angeles and Long Beach, waiting to get into one of the full berths to unload their cargo. A video featuring an aerial view of the anchored fleet was posted on YouTube.  

Organic Outlook: Corn, wheat face supply glut; soy market expected to remain strong

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Larger-than-expected beginning stocks and more harvested acres have placed organic corn and wheat on a bearish trend over the 2019/20 market year, according to the new Mercaris Organic Commodity Outlook. Meanwhile, strong demand and lower imports have provided support to organic soybeans markets.

Mercaris, the nation’s leading market data service and online trading platform for organic, non-GMO and certified agricultural commodities, today released its spring outlook.

Despite poor planting and harvest conditions in 2019, additional certified corn and wheat farms helped push harvests above previous estimates. In addition, corn imports rose sharply at the end of the 2018/19 market year, 12% above projections.

“Feed-grade organic corn prices have experienced a lot of pressure since last August, as harvest exceeded the industry’s expectation,” said Ryan Koory, Director of Economics for Mercaris. “With buyers expecting tighter 2019/20 supplies, a lot of organic corn was imported and stored at the end of 2018/19 putting corn markets in a perpetually long supply position this year.”

For organic soybeans, a collapse in imports from China and a reduction from Canada and the Black Sea Region point to supply constraints and higher prices.

“With China and the Black Sea Region sending less organic soybean meal to the U.S., domestic organic soybean crush has picked up the slack, tightening the overall U.S. soybean supply situation,” Koory said. “We may see this pressure back off this fall if we experience a good organic soybean harvest. But, through the remainder of 2019/20 organic soybean prices look firmly supported.”

Additional findings from today’s report include:

  • U.S. organic corn production is estimated at 39.7 million bushels for 2019/20, up 9% from the previous outlook but still down 4% year-over-year.
  • Organic soybean production is estimated at 7.6 million bushels, also up 9% from the previous outlook, but down 4% year-over-year.
  • Organic feed demand is projected at 31 million bushels, with organic wheat and organic corn silage making up a growing percentage of overall feed.
  • Organic wheat production saw a 15% year-over-year increase in 2019 at 20 million bushels, driven mostly by an increase in acres in the High Plains.

Today’s report includes additional data and commentary on expected yields, use, prices and more for organic commodities. For more information and to purchase a copy of the report, visit Mercaris. There will be a webinar on April 30 at 10:30 a.m. CT to cover these findings for those who purchase the report.

For information about COVID-19-related risks to organic markets, a free Mercaris report is also available here.

Japan Eyes Free Trade Deal With Post-Brexit Britain

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By Mina Pollmann for The Diplomat

With the United Kingdom having formally left the European Union on January 31, British Foreign Minister Dominic Raab is traveling to the Asia-Pacific region this week with stops in Australia, Japan, Singapore, and Malaysia. The purpose of Raab’s trip is to prepare the road for bilateral British free trade deals in a post-Brexit world, ideally finalizing these trade deals by January 2021, when Britain’s transition period ends.

Japan already has an economic partnership agreement (EPA) with the EU, which went into force last February. This deal will cover British-Japanese trade throughout the duration of the transition period, but the U.K. will need to strike its own bargain with Japan to replace it. Both the Japanese and British governments have expressed hopes that their bilateral trade deal will be more ambitious than the existing Japan-EU EPA. For the U.K., an aggressive trade deal with Japan is desirable as potential leverage to strengthen its position vis-à-vis the EU. But British desire for a comprehensive deal – and the very real deadline Brexit imposed – provides opportunities for Japan as well.

The main issue at stake will be auto tariffs. Under the Japan-EU EPA, auto tariffs are on schedule to be eliminated in eight years, but it is possible that Japan will press London for the immediate end of auto tariffs. Another issue is the possible inclusion of investor-state dispute settlement (ISDS) mechanisms. Such mechanisms allow for companies to sue foreign governments if they are treated unfairly. There is no ISDS mechanism in the Japan-EU EPA due to European opposition, but given that there is an ISDS mechanism in the Trans-Pacific Partnership agreement (of which Japan is a member) and the U.K. also wants to join the TPP, London may agree to Tokyo’s terms regarding ISDS mechanisms.

Japanese businesses are eager for the speedy conclusion of a trade deal that will return stability and predictability to doing business in Britain. Hiroaki Nakanishi, chairman of the Japan Business Federation, or Keidanren, emphasized the need for business input into the process. In a recent news conference, he emphasized that “Japan needs to conduct various talks with both the United Kingdom and the European Union in a public-private effort.” Japanese automakers may play a particularly large role in negotiations, as Nissan, Toyota, and Honda together make up about half of auto production in Britain.

With nearly 1,000 Japanese companies operating in the U.K., the government will be responsive to such concerns. Last Friday, Economy, Trade, and Industry Minister Hiroshi Kajiyama told a news conference, “I will tackle building an ambitious economic partnership with the United Kingdom.” On the same day, Foreign Minister Toshimitsu Motegi also affirmed, “We will quickly work to build a new economic partnership with Britain.”

Before Prime Minister Shinzo Abe’s second tenure as premier, Japan had been known for its protectionist trade policies. But Abe came in to office championing trade liberalization as a key driver of structural economic reform. After Donald Trump’s election in 2016 and U.S. withdrawal from the TPP the next year, Japan recast itself as a proponent of free, liberal, rules-based trade regimes. With additional momentum generated by the pressures that Brexit puts on British leaders, Abe may not only succeed in getting a bilateral trade deal, but also, with London, in expanding TPP to a trade bloc large enough to entice the wayward United States back into the regional economic architecture.

Thailand government reconsiders ban of chemical use

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The Thailand National Hazardous Substance Committee (NHSC) has overturned their earlier decision to ban three agricultural chemicals. The Oct. 22 decision to classify glyphosate, paraquat and chlorpyrifos as Category 4 substances was to start Dec. 1. This classification would have banned the chemicals from production, possession, importation and exportation and would require a zero maximum residue level (MRL) applied to possible exposure.

The Nov. 27 decision keeps glyphosate as a Category 3 substance (restricted use and sales), while a classification of paraquat and chlorpyrifos as Category 4 substances will become effective June 1, 2020.

Recently, Specialty Soya and Grains Alliance (SSGA) member Rob Prather of Global Processing, traveled to Southeast Asia to meet with buyers and learn more about the Thai ban. Read that story here.

SSGA looks forward to discussing this issue at the annual meeting Tuesday.