Over the past seven years, California lettuce growers have experienced a 63.7% increase in compliance costs related to environmental, labor, and food safety regulations. A study by Cal Poly, San Luis Obispo, commissioned by the Monterey County Farm Bureau, highlights these findings.
By last year, the compliance costs for lettuce growers reached $3,950 per hectare, representing over 12% of total production costs. Despite these rising expenses, farmgate values for lettuce increased by less than 1% from 2017 to 2024.
The regulatory challenges stem from mandates such as the Sustainable Groundwater Management Act, Irrigated Lands Program, equipment emissions regulations, and minimum wage and workplace mandates. Norm Groot, executive director of the Monterey County Farm Bureau, noted, "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." He further stated that the most substantial cost increases were in labor health insurance requirements and water quality compliance, while food safety costs remained relatively steady.
California Farm Bureau President Shannon Douglass addressed the broader implications, stating, "California policymakers spend considerable time focusing on sustainability, but the current situation is unsustainable. 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, titled "Two Decades of Change: Evolving Costs of Regulatory Compliance in the Produce Industry," was published by Cal Poly, San Luis Obispo.
Source: Ag Alert