Farm Raw Product Wholesalers NAICS 4245

Sep 23, 2025 - UP-Norfolk Southern Merger

• Farm raw products wholesalers have a lot riding on the merger of the Union Pacific and Norfolk Southern railroads: About 3.2 million rail cars of grains, oilseeds, and other agricultural products move by rail on an annual basis, representing more than 10% of all rail shipments, and 26% of grain has at least one rail movement, according to the National Grain and Feed Association. The $85-billion proposed merger would create the nation’s first transcontinental freight railroad, connecting over 50,000 route miles across 43 states and linking some 100 ports, according to Union Pacific. In 2023, more than 80.5 million tons of corn, 26.3 million tons of soybeans, and 25.8 million tons of wheat were shipped by rail, per the USDA’s Agricultural Marketing Service. The companies are targeting an early-2027 close for their merger, which faces intense scrutiny from the Surface Transportation Board.
• As part of its dismantling of USAID, the Trump administration halted the Food for Peace program, which provided a market for US crops and helped to feed 4 billion people worldwide since its inception in the 1950s, The Wichita Eagle reports. However, closure of the US Agency for International Development is facing pushback from farm state Republicans. To safeguard the program and billions of dollars in wheat, rice, and other farm product sales, two Kansas Republicans are pushing legislation to move it to the US Department of Agriculture. Sen. Jerry Moran of Kansas said food aid had proven its value in fostering political stability abroad, bolstering US national security and providing markets for US crops, adding “By moving this program closer to the producers who grow these crops, we can help reduce waste and make certain our farmers have access to this valuable market.”

• US agricultural exports in fiscal year 2025 (ending Sept 30) are projected at $170.5 billion, up $500 million from the November forecast, as higher grain and feed exports offset reductions to the oilseed outlook, according to the USDA’s Outlook for US Agricultural Trade: February 2025. Grain and feed exports are projected at $37.7 billion, up $1.2 billion from November, led by higher corn exports. Along with higher feed and fodder exports, these increases more than offset moderately lower wheat, sorghum, and rice exports. Mexico is forecast to remain the largest market for US agricultural exports at a record $30.2 billion, up $300-million from the previous forecast on strong sales of dairy, wheat, and other products during the first quarter. Exports to Canada are forecast to fall $800 million to $28.4 billion due to weaker-than-expected shipments to date. Exports to China are cut by $1.3 billion to $22 billion, largely due to reduced prospects for US soybeans, grains, and cotton.
• Producer prices for farm product raw material merchant wholesalers tumbled 22.7% in August compared to a year ago, after falling 5% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Wholesale prices of farm raw products are volatile and are impacted by swings in prices for farm commodities including grains, crops, and livestock. Employment by the industry was flat year over year in July, according to the BLS. Industry inventories fell 4.9% in July from June and were down 2.6% year over year, according to the Census Bureau’s July Wholesale Trade Survey. Inventory levels generally peak in the winter months as distributors build stocks, then decline later in the year.