Proposition 12 regulations will increase the cost of raising pigs and ultimately, the cost of pork for consumers, National Pork Producers Council (NPPC) Vice President Lori Stevermer said during NPPC’s media roundtable.
Increasing costs for consumers and production expenses for producers are major concerns for Stevermer, a Minnesota pig farmer who actively promotes pork at public events such as state fairs, health expos and marathons.
“People come up to me at these events and tell me they like pork because it’s versatile and affordable. Certainly, in these times of inflation where people are already watching their food dollars, that’s a big deal,” Stevermer said.
But most importantly, Proposition 12 is going to cause many pig farmers to go out of business because they just can’t make those financial commitments, Stevermer said.
All Eyes on October 11
The pork industry is awaiting an important date – Oct. 11 – when NPPC and the American Farm Bureau Federation (AFBF) will present their case before the U.S. Supreme Court why the appeals court judgment upholding Proposition 12 should be reversed.
“For me, what this really comes down to is small farmers will be unable to spend millions of dollars to renovate their operations to satisfy a law in a state elsewhere that might change again in a few years. From AFBF’s perspective, that is our biggest concern of what this will do to the small farmer,” said Travis Cushman, deputy general counsel for AFBF.
Farmers agree.
For NPPC President Terry Wolters, a Minnesota pig farmer, the arbitrary housing standard of going to 24 square feet, is unscientific and has no benefit to animal welfare. In order to comply with that regulation, he would have to expand his gestation facilities approximately 20%. Not only is that an added cost to be incurred by Wolters as a producer, it will also add more electricity and propane cost. And total costs are estimated to be $3,500 per sow to comply, he said.
“That economic impact is not going to be able to be borne by many of the producers. Individually, producers are not going to be able to handle that at a small level, and therefore it will end up pushing small producers out of the business,” Wolters said. “You’re going to drive consolidation, which is a fear of mine.”
Michael Formica, chief legal strategist for NPPC, said 20% larger barns also mean 20% more concrete, 20% more steel, etc. The initial added costs are significant, but they don’t end there.
“You have 20% or more space you need to heat or cool year-round. You don’t get the benefit of the animals generating their own body heat, so you’ll have to generate warmth for that area not being used by the animals. You’re just burning energy for no reason,” Formica said.
It Ultimately Costs the Farmer
It’s hard to know exactly what Proposition 12 will cost U.S. pig farmers, but the added costs are apparent.
“We have estimates, but it’s tough to calculate until the law is actually in effect,” Formica said. “Hours before our brief was filed, we received notice from California that they finally – over three years late – finalized the rules implementing Proposition 12. There’s an injunction in place against the enforcement of those rules on the pork side, so we don’t really know what the real impact is going to be.”
But there’s no question those costs will get passed on in Proposition 12 farms.
“A portion will get passed on and carried with the cost of that pig, but there’s only one pig and that one pig becomes many different cuts of meat. So maybe the bacon goes to California, but the ribs might end up in my house in Virginia and I’m not going to pay the cost of Proposition 12. The hams are going to get exported down to Mexico and the Mexicans aren’t going to pay for that added cost due to Proposition 12. Variety meats and other pieces of the pig will be exported, and our export partners aren’t going to pay for it either,” Formica explained. “Those are some of the costs that farmers will have to bear.”
More from Farm Journal’s PORK:
Proposition 12 is Not the Way We Want to Care for Animals, Hays Says
Ironic Timing: NPPC, AFBF File Reply Brief on Prop 12, CDFA Finalizes Rules
Proposition 12 Compliancy: Don’t Do It for Free, Hollis Says
