WASHINGTON — Over 900 agricultural groups joined a coalition to ask Congress to implement a “federal fix” to California’s Proposition 12.
Led by the National Pork Producers Council (NPPC) and the American Farm Bureau Federation (AFBF), the letter sent on May 21 to House Agriculture Committee Chairman G.T. Thompson (R-Pa.) and Ranking Member David Scott (D-Ga.) laid out several arguments for damaging consequences of Prop 12.
“California’s Proposition 12 — and the implications of the Supreme Court’s decision in National Pork Producers Council v. Ross — are causing turmoil in agricultural markets and having significant detrimental impacts on our members’ farms and ranches, especially small and medium-sized farms,” the letter said.
The groups urged Congress to include a provision in the 2024 Farm Bill to prevent the possibility of conflicting state laws throughout the country that could complicate interstate commerce.
The letter cited a recent testimony before the House Agriculture Committee from Tom Vilsack, secretary of agriculture. He warned, “If we don’t take this issue [Prop 12] seriously, we’re going to have chaos in the marketplace.”
Without action taken to address the Prop 12 decision, the agriculture community fears massive compliance costs and forced consolidation throughout the industry.
According to studies conducted by economists at North Carolina State University and Iowa State University, constructing new, Prop-12-compliant barns can cost 40% more than traditional barns and 25% more than conventional group housing, not including the estimated 15% higher operating costs caused by reduced productivity.
Other concerns brought up in the letter include the negative impact legislation like Prop 12 could have on relationships with longstanding trade partners.
“Compliance with Proposition 12 threatens partners with loss of market access to the most populous state in the union,” the groups wrote. “Similarly, it undermines the ability of the United States to negotiate trade agreements across the globe, as countries could impose similar non-science based regional restrictions on US exports. Our organizations are also concerned Proposition 12 puts the United States at risk of retaliatory action on American agricultural products.”
Canada has already raised concerns, the groups noted.
As California accounts for nearly 15% of the national market, pork producers lack the luxury of choosing not to sell to the state’s market, according to the letter.
“There is not a choice between doing business with California and not in California. You’re essentially going to be driven by that requirement,” Vilsack told the Senate Agriculture Committee.
The letter was signed by organizations from 40 different states as well as the following national organizations: the Agricultural and Food Transporters Conference of American Trucking Associations, American Farm Bureau Federation, American Sheep Industry Association, Beef Alliance, Livestock Marketing Association, National Cattlemen’s Beef Association, National Corn Growers Association, National Lamb Feeders Association, National Milk Producers Federation, National Pork Producers Council, National Sorghum Producers, National Turkey Federation, Rural & Agricultural Council of America, and US Cattlemen’s Association.