A two-decade research study offers a rare glimpse into the books of a large lettuce operation in the Salinas Valley. Labor, food safety and groundwater management rules — among many other regulations and fees — have led to a 1,366% jump in regulatory costs since 2006, according to the new paper.
The case study offers a snapshot of the financial challenges growers must endure to operate within California’s rapidly changing regulatory environment. It builds on research started in 2006 by Lynn Hamilton, a Cal Poly agribusiness professor.
In 2018, she returned to the farming operation and had a nearly 800% increase in regulatory costs. The same grower is the focus of the new paper released on Wednesday and commissioned by the Monterey County Farm Bureau.
Republicans target high-speed rail
First-term Asm. Alexandra Macedo of Tulare wants to divert high-speed rail money for wildfire prevention and water infrastructure.
Macedo called California’s high-speed rail project a “colossal failure” and said her strategy under AB 267 would protect lives and better the economy. She thanked Rep. Vince Fong, R-Bakersfield, who agreed the state needs to “do something differently.”
Remember: As an assemblymember, Fong had made a similar, though short-lived, push in 2023 to reallocate $5 billion in rail money for water conveyance, storage and flood protection. Republicans have long criticized the project, with President Donald Trump threatening to rescind its funding as well.
Rollins heads to Capitol Hill
Ag Secretary-nominee Brooke Rollins is on Capitol Hill today for her confirmation hearing with the Senate Ag Committee. She’s expected to face questioning about bird flu, biofuel policy and nutrition assistance, among other issues.
In her opening statement, a portion of which was obtained by Agri-Pulse, Rollins is set to emphasize “immediately and comprehensively” containing ongoing animal disease outbreaks. She will also pledge to serve all of agriculture and all Americans, as well as ensuring that $31 billion in disaster aid and economic assistance authorized by Congress in December is distributed to producers “as quickly and efficiently as possible.”
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“I fully recognize that if I am confirmed, I am stepping into this role during one of the most economically challenging times in American agriculture,” Rollins says in her statement.
Check www.Agri-Pulse.com today for coverage of Rollins’ confirmation hearing.
Take note: The Senate Finance Committee has announced its confirmation hearing next Wednesday for Robert F. Kennedy Jr. to be secretary of HHS.
Next in Trump’s tariff sights: Russia
President Donald Trump’s tariff sights turned to Russia on Wednesday, as he threatened new duties unless President Vladimir Putin ends the war in Ukraine.
In a Truth Social post, Trump noted that Russia’s economy is struggling and threatened “IT’S ONLY GOING TO GET WORSE. If we don’t make a ‘deal,’ and soon.”
Trump warned that he would implement “high levels of Taxes, Tariffs, and Sanctions on anything being sold by Russia to the United States” and hinted at cooperating with other countries on the measures.
Why it matters for ag: The International Food Policy Institute estimates Russia provides 20% of global potash fertilizer supplies; around 9% of U.S. potash imports come from the country. Russia also increased its phosphate exports in 2021-2023, but U.S. imports from a major Russian phosphate supplier already face nearly 20% duties.
Trump administration goes after DEI efforts
The Trump administration is taking steps to eliminate all federal efforts aimed at increasing diversity, equity, inclusion and accessibility.
In “initial guidance” sent to agency heads Tuesday, Office of Personnel Management Acting Director Charles Ezell said agencies should notify “all employees of DEIA offices that they are being placed on paid administrative leave effective immediately as the agency takes steps to close/end all DEIA initiatives, offices and programs.”
The memo also said agencies should “withdraw any final or pending documents, directives, orders, materials, and equity plans issued by the agency” in response to an executive order from former President Joe Biden on equity in the federal workplace.
That would appear to include the USDA’s 2023 equity action plan. But the link we’re providing here may not work by the time you see this; the memo also says agencies should “take down all outward-facing media,” including websites and social media accounts, of DEIA offices.
Argentina reduces trade barriers for U.S. food products
The Argentinian government has simplified procedures for importing food products, easing frictions for U.S. exporters.
Food products arriving in the country previously had to meet the product and packaging standards outlined in the Argentine Food Code. A statement from the Ministry of Health says products certified in countries with “high health surveillance” will automatically be recognized under the code. The U.S. is listed among several countries set to benefit from the changes.
The decree also eased domestic regulations on exports.
“We seek cheaper food for Argentines and more Argentine food for the world,” Federico Sturzenegger, the country’s minister for deregulation and state transformation, said in a post to X.
OMB pick calls social programs ‘benefit hammock'
Trump’s pick to lead the Office of Management and Budget for a second time, Russell Vought, says federal assistance programs have become a “benefit hammock and increasingly so in the aftermath of COVID.”
Vought, a coauthor of Project 2025, the Heritage Foundation’s blueprint for Trump’s second term, also said at his confirmation hearing that “you can get sizable levels of reforms that can lead to a balanced budget.”
The chair of the House Budget Committee, Jodey Arrington, R-Texas, has floated proposals to cut the cost of the Supplemental Nutrition Assistance Program substantially by tightening eligibility and rolling back changes to the economic model used to set benefits.
SNAP also came up in a meeting of House GOP members Wednesday where committee chairs outlined ways to cut spending, a lawmaker said.
By the way: Senate Budget Committee member Pete Ricketts, R-Neb., asked Vought if he would commit to ensuring EPA is “following the law” in administering the Renewable Fuel Standard. “Yes, sir,” Vought said.
Correction: Jeffery Hall will succeed Vincent Logan as chair and CEO of the Farm Credit Administration, not continue as chair, as we reported Jan. 21.
