Farmers, Weskan Grain and Colorado Pacific sue K&O and Union Pacific
Updated
Updated · The Fence Post · May 6
Farmers, Weskan Grain and Colorado Pacific sue K&O and Union Pacific
6 articles · Updated · The Fence Post · May 6
The 27 January Kansas federal case includes 13 farmers from Kansas and Colorado and alleges a secretly amended 1997 lease imposed interchange fees believed to exceed $500 per railcar.
Plaintiffs say the charges and other barriers make westbound grain shipments on the rehabilitated Towner Line cost-prohibitive, blocking access to West Coast markets and depressing prices paid to producers.
Colorado Pacific bought the 120-mile line in 2018 after stopping its demolition, then rebuilt it and expanded Weskan Grain, arguing added rail competition had already improved local grain basis by 30 to 40 cents.
Will a lawsuit over a rural rail line derail an $85 billion transcontinental merger?
Can one investor's fight against 'paper barriers' finally give rural farmers competitive access to markets?
How a $500 Interchange Fee Created a Six-Year Monopoly on High Plains Grain Transport
Overview
In early 2026, thirteen farmers, Weskan Grain, and Colorado Pacific Railroad filed an antitrust lawsuit against Union Pacific Railroad and Kansas & Oklahoma Railroad, challenging a secret $500+ per railcar fee imposed in 2019. This fee blocked westbound grain shipments on the Towner Line for over six years, forcing costly 140+ mile detours and heavy reliance on trucking, which increased expenses and reduced grain prices for farmers. The Surface Transportation Board also denied UP and K&O's lease renewal due to anti-competitive concerns tied to this fee. The lawsuit aims to eliminate this barrier, restore competition, and improve market access for High Plains agriculture.