In a lawsuit filed in late January in the U.S. District Court for the District of Kansas, two agribusiness plaintiffs and 13 farmers allege antitrust violations by a Class I railroad, Union Pacific, and a short-line operator, Kansas & Oklahoma Railroad.
Plaintiffs include Weskan Grain and Colorado Pacific Railroad, along with D&L Farms, GP; E&D Farms, GP; D&C Farms, GP; L&E Farms, GP; North Four Farms, GP; Marienthal Grain, LLC; D&A Farms, GP; Hineman Land & Cattle, Inc.; Hineman Ranch, L.L.C.; Circle C Farms, Inc.; Steven Compton; Mark Sanders; and JLD Partnership.
The lawsuit alleges UP and K&O worked together to stifle competition after Colorado Pacific Railroad rehabilitated the Towner Line. Plaintiffs claim the alleged conduct gave the railroads unfair control over westbound grain shipments — affecting the prices farmers receive for grain in Lane, Scott, Wichita, and Greeley Counties in Kansas and Kiowa County, Colo.
Union Pacific provided this statement, noting its view that the matter falls under the Surface Transportation Board’s purview: “Union Pacific denies the allegations of the lawsuit and will present the facts to the court and Surface Transportation Board who handles these issues.”
Will Bramblett, CEO of Weskan Grain, said after Soloviev Group acquired Colorado Pacific Railroad, Union Pacific and K&O put in place what he described as a “paper barrier” that makes interchange across the Kansas-Colorado line uneconomic–reportedly over $500 per car.
“What we’re trying to do is just get a more competitive environment for our local producers — farmers in the area — to be able to ship grain to markets across the U.S. and export markets in a more competitive manner,” Bramblett said.
As an example, he said in eastern Colorado, Weskan has been able to use a 110-car shuttle served by both BNSF and Union Pacific to bring cost savings and basis improvements of 25 to 40 cents.
“We’d just like to see that same thing happen in western Kansas,” he said.
Watco, the parent company of K&O, provided this statement: “We do not comment on litigation matters, but as a matter of course we will defend our commitment to the values that define us through the proper legal channels.”
Farm Journal TV subscribers: Watch the full fireside chat with Stefan Soloviev, chairman of the Soloviev Group, from the 2026 Top Producer Summit.
