U.S. pork producers and American consumers are facing significant cost increases due to Proposition 12. And the data keeps proving it. In a House Committee on Agriculture hearing, “An Examination of the Implications of Proposition 12,” Committee Chairman Glenn “GT” Thompson (R-PA) said Congress must provide a fix for Prop12.
“It begs the question – if producers are paying more, and consumers are paying more, who is winning?” Thompson said during the hearing on July 23. “Thankfully, the complexity and unfairness of Prop 12 has been realized by both sides of the aisle.”
Six witnesses testified before the full House Agriculture Committee on the implications of California’s Proposition 12 for farmers and food prices.
Overregulation Hurts Farmers
Pat Hord, an Ohio pork producer and vice president of the National Pork Producers Council (NPPC), shared his family farm’s story with the Committee. He said, “Despite producing Prop 12-compliant pork, I am here to say Prop 12, and an unmitigated regulatory patchwork, threatens our farm.”
Prop 12, a California ballot initiative, bans the sale of pork that does not comply with the state’s prescriptive and arbitrary production standards. Though enacted in a single state, Prop 12 has created sweeping consequences nationwide by fueling market volatility, imposing costly new mandates on producers, and paving the way for a patchwork of inconsistent state regulations.
“Spending my entire life raising pigs in a variety of ways, I’m convinced it’s best to allow production methods and consumption demands to take shape in the open market, as opposed to arbitrarily shaping them through poorly worded and short-sighted ballot initiatives,” testified Matt Schuiteman, a farmer and Iowa Farm Bureau board member.
The data shows Prop 12 is creating economic hardship. As of the first quarter of 2025, 12% of small pork operations have exited the market or shifted production away from breeding, citing regulatory uncertainty and high transition costs.
“Prop 12 opens a Pandora’s box of state regulatory overreach that threatens family farms across the country,” NPPC shared in a statement. “This overregulation hurts farmers, increases prices for consumers, and compromises our nation’s food security.”
Unjustified Price Increases
But it wasn’t just pork producers voicing their concern at the hearing over the obstacles caused by Prop 12.
“Harm is what Prop 12 has caused, smashing like a wrecking ball the livelihoods of small restaurants and the communities we serve by disrupting supply chains and dragging up the cost of culturally vital foods like pork,” said Lily Rocha, executive director for the Latino Restaurant Association. “It’s brought economic devastation to families already stretched thin.”
Rocha said Prop 12 is a death sentence for small businesses operating on razor-thin margins.
NPPC economist Holly Cook testified that USDA research and recent scanner data confirm the impact on consumer costs.
“A study released in 2024 by economists at USDA’s Office of the Chief Economist compared retail pork prices and volumes in California and the rest of the U.S. for a period preceding Proposition 12 (October 2019-June 2023) and for 8 months after its partial implementation date (July 2023-February 2024),” Cook said. “After subtracting any price increases that were also observed in the rest of the U.S., the study attributed the following prices increases in California to the impact of Prop 12: 41% increase in pork loin prices, 17% increase in pork rib prices, 17% increase in pork shoulder prices, 16% in bacon prices, and 20% increase in fresh ham prices. Overall, the report suggests a 20% average increase in the sales prices for pork products covered by Proposition 12 and minimal impacts on products not covered by the law, such as sausage.”
Recent retail data also revealed a decline in pork volume sales in California and a 2% to 3% decline in California’s share of national fresh pork sales. Retail scanner data compiled by Circana confirms that these trends have held up over subsequent periods, Cook added.
“From July 2024 to June 2025, the second year of Proposition 12’s partial implementation, prices for popular covered pork products in California were 24% higher on average, with a range of 12% to 33% higher across covered products, than they were in the year leading up to implementation (July 2022 to June 2023),” Cook said. “This compares to an average 3.6% increase for the entire U.S. over the same period.”
In short, Californians are spending more but consuming less pork than they were before Prop 12.
A Contentious Issue
Tiffany Dowell Lashmet, professor and Extension specialist at Texas A&M AgriLife Extension, noted the importance of recognizing that there are agricultural interests on all sides of the Prop 12 debate.
“Certainly, there are agricultural producers, groups and businesses in favor of congressional action to overturn Prop 12,” she said. “Similarly, there are agricultural producers, groups and businesses strongly against Congress taking such action, many of whom have already gone to the expense to comply after Prop 12 was passed and upheld by the U.S. Supreme Court.”
Ranking Member Angie Craig (MN-02) pointed out during her comments that Prop 12 is clearly a contentious issue, and merits thoughtful, bipartisan discussion.
“We cannot ignore the questions and challenges Prop 12 raises,” Craig said. “Even the Biden administration’s ag secretary said we need to treat this issue seriously to ensure stability in the marketplace. I agree that we cannot have 50 states with 50 different regulatory frameworks because of the significant challenges it would present to producers, but I believe that there are ways to avoid that situation.”
She also shared that many pork producers have made significant financial investments to make their operations Prop 12-compliant and that Congress needs to be mindful of the voters in California who exercised their rights under their state constitution to adopt this policy.
Thompson reminded the room that Justice Gorsuch noted several times in the majority opinion that Congress would be well within its power to act. Although Thompson doesn’t agree with the Supreme Court’s decision to uphold Prop 12, he agrees that Congress can and must act to rectify the burdens Prop 12 has imposed on interstate commerce.
Travis Cushman, deputy general counsel, litigation and public policy for the American Farm Bureau Federation, said in his testimony, “When a single state can condition access to its market on compliance with production mandates that override the judgment of veterinarians, farmers and experts nationwide, Congress must act. This is not a theoretical concern. It is already harming farmers, confusing the courts and threatening the viability of a national food system.”
Cushman believes the language that the Committee passed in the 2024 Farm Bill restores clarity, restores congressional authority and interstate commerce, and protects both producers and consumers from a patchwork of conflicting amenities.
The Patchwork Problem
“When we talk about any premiums that do exist in the market today, the prospect of a patchwork threatens the certainty and the sufficiency of those premiums in the long run,” Cook said following the hearing. “NPPC is seeking to provide certainty to all producers about the environment in which we’re going to be making these decisions and investing in the future of the industry.”
Cook said it was a long day on Capitol Hill, but it was encouraging to hear producers share just how much they care about the animals they raise.
In fact, Hord spoke to misconceptions that Prop 12 enhances animal welfare, citing American Veterinary Medical Association and American Association of Swine Veterinarians opposition to the law and how those pen requirements can “unintentionally cause harm” to animal welfare.
“There were some good discussions around producers caring for their animals and maximizing animal welfare, not only because it’s the right thing to do, but because they have every economic incentive to do everything they can to maximize animal welfare,” Cook reflected.
She noted there were productive discussions on the impacts of Prop 12 from the farm level through the supply chain and all the way to the consumer.
“Producer voices are so strong,” Cook said. “Being able to deliver their stories to their representatives and members of Congress on the impact these issues are having on their farms is always the strongest message lawmakers can receive.”
