Study finds skyrocketing cost of regulatory compliance for California lettuce growers

Study finds skyrocketing cost of regulatory compliance for California lettuce growers

Study finds skyrocketing cost of regulatory compliance for California lettuce growers

During the past seven years, the cost to California lettuce growers of complying with the state’s environmental, labor and food safety regulations has increased by a whopping 63.7%, according to a study commissioned by the Monterey County Farm Bureau and prepared by Cal Poly, San Luis Obispo, professors Lynn Hamilton, Ph.D., and Michael McCullough, Ph.D.

As of last year, increased regulations brought the total cost of compliance for lettuce growers to $1,600 per acre, the researchers found, accounting for more than 12% of total production costs.

The regulatory burden has tightened margins for farmers, who saw farmgate values for lettuce rise by less than 1% from 2017 to 2024.

Increased regulatory mandates during that time have come from California’s Sustainable Groundwater Management Act, Irrigated Lands Program, equipment emissions regulations, and minimum wage and workplace mandates.

 “Costs of regulatory compliance expenditures were studied for food safety practices and inspection audits, air quality, water quality, crop protection reporting, labor health and safety, and labor wages,” Norm Groot, executive director of the Monterey County Farm Bureau, said in a press release. “Most significant cost increases were in labor health insurance requirements and water quality compliance, while food safety costs remained relatively steady.”

Building on those concerns, California Farm Bureau President Shannon Douglass emphasized the broader implications of rising costs.

“California policymakers spend considerable time focusing on sustainability, but the current situation is unsustainable,” she said. “Producers cannot continue to bear the burden of ever-increasing costs while their ability to remain competitive erodes. If policymakers fail to strike a better balance, California risks losing its ability to produce high-quality food, sustain jobs and preserve green rural spaces that benefit everyone."

The study, “Two Decades of Change: Evolving Costs of Regulatory Compliance in the Produce Industry,” was published this month by Cal Poly, San Luis Obispo.

Reprint with credit to California Farm Bureau. For image use, email barciero@cfbf.com.