Prop 12 Fallout: Pork Producers Face Multi-Million Dollar Compliance Costs

It’s not feasible to expect all pork producers to comply with Proposition 12, explains Kelly Cushman, NPPC vice president of domestic policy. Here’s a look at her chat with Chip Flory of AgriTalk this week.

Sow barn
Sow barn
(Lindsey Pound)

It’s not feasible to expect all pork producers to comply with Proposition 12, explains Kelly Cushman, vice president of domestic policy for the National Pork Producers Council (NPPC).

“Like all industries, ours is very diverse and is made up of different types of producers and different types of operations. We’re looking at Prop 12, probably costing $3,000 to $4,000 a sow to implement, which could be upwards of $10 million per farm,” Cushman told AgriTalk host Chip Flory on Thursday. “I think this just speaks to the fundamental right that farmers and producers should have the freedom to make personalized decisions that best suit their operation and their situation. Prop 12 is preventing them from being able to do that.”

Flory said that’s a lot of expense the industry is going to bear unless there is a legislative fix at the federal level.

Is a Legislative Fix Coming?

“House Ag Chairman Thompson was in Minnesota yesterday,” Flory said. “Thompson said again that he intends to constructively address Prop 12 using the Farm Bill. What do you think that might look like?”

NPPC appreciates the chairman’s leadership, Cushman said. She also noted Senator Grassley’s AgriTalk interview during PORK Week in June where he said similar things.

“Folks are really looking at the Farm Bill as a way to solve Prop 12,” Cushman said. “There is a piece of legislation out there called the EATS Act. We’re supportive of it or any viable opportunity that provides certainty to our producers. The best chance EATS has for passing is for it to be part of the Farm Bill. We’re certainly hoping when Congress comes back from recess, that they remain committed to passing a farm bill that addresses Prop 12 in a timely manner.”

In response to California’s Proposition 12, Sen. Roger Marshall (R-Kan.), Sen. Chuck Grassley (R-Iowa) and Sen. Joni Ernst (R-Iowa) reintroduced the Ending Agricultural Trade Suppression (EATS) Act in the Senate while Rep. Ashley Hinson (R-Iowa) leads the effort in the House of Representatives. The legislation prohibits state and local governments from interfering with agricultural production nationwide, while preserving their ability to regulate farming and ranching within their jurisdictions.

Under the EATS Act, Cushman says any state would have the right to regulate production and manufacture of agricultural products that occurs within its own state boundaries.

“It’s just saying that they don’t have the right to regulate that production that takes place in another state. Can you imagine what would happen if pig farmers told California how to grow kale?” Cushman asked Flory.

Basically, the “fix” has to address interstate commerce issues, Flory pointed out.

“That’s correct,” Cushman emphasized. “Basically, right now California has kept telling folks in other states how to grow hogs. And that’s just not right.”

What’s Ahead for Producers?

Prop 12 has been implemented. For NPPC, that means their focus right now is working with producers across the country to make sure they understand all that goes into compliance and that they have the resources necessary to comply.

Conflicting photos have been circling around that depict empty meat cases in California, while others show plentiful supply. It’s hard to know what’s true, but NPPC says they are watching the situation very closely.

“We want to make sure that anyone in California who wants to eat a pork product or purchase a pork product for their family is able to do so,” Cushman said. “We know Prop 12 has far-reaching implications.”

Despite efforts to mitigate chaos, confusion still abounds around Prop 12 regulations amidst all sectors.

“I don’t think voters and folks in California specifically understood the complexity of this proposal, and now they’re living through it and seeing the consequences of it,” Cushman said.

Triumph Foods, along with Christensen Farms Midwest LLC, The Hanor Co. of Wisconsin LLC, New Fashion Pork LLP, Eichelberger Farms Inc., and Allied Producers’ Cooperative, which is a collective of smaller Midwest farmers, launched a lawsuit in a Massachusetts federal court to dispute the legality of Massachusetts Question 3.

“We’re watching that case and we’re watching other states that may try to take similar action. That’s the problem with something like this. It’s a slippery slope,” Cushman said. “And that is what gives us pause. Producers just don’t have the capacity. Most small- and mid-sized family farms don’t have the capacity or resources to comply with every single regulation that comes out of every state. They need a legislative solution, like the EATS Act, that pre-empts Prop 12 and prevents a patchwork of regulations across the country.”

NPPC wants Congress to solve Prop 12, she said.

“We support a federal solution that addresses the sweeping issues and the consequences and challenges presented by Prop 12,” Cushman noted. “Prop 12 is going to increase prices, shrink supplies of affordable protein inside and outside California. This doesn’t just affect those folks in California. It forces consolidation and leads to a loss of family farms.”

More from Farm Journal’s PORK:

Will Congress Intervene To Counter Prop 12? Grassley Says Yes!

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