packaging. The costs will be distributed throughout the supply chain; thereby, working against other affordability efforts taking place in Sacramento. Infrastructure is Lacking One of the obvious questions I receive is, “Does California have the infrastructure to manage an extensive recycling program for almost 40 million people?” The simple answer is, “No.” We do know that the cost to build a statewide waste management infrastructure will be monumental. While the funds collected may or may not go to improving the infrastructure in California — only time will tell. Some would say, this is putting the cart before the horse. Ag Council’s Dairy Committee Chair Melvin Medeiros said, “This is like buying 1,000 dairy cows and not having a barn to milk them in.” It will likely require state and federal partnerships to secure the funding needed to fully implement this regulation and build the necessary infrastructure. No doubt, the cost will be enormous. Driving Up Costs During an Affordability Crisis The fees that will be paid by producers into the regulatory system will likely be to the tune of millions of dollars annually per entity. Those of us in agriculture know that for most commodities, our farmers are price takers with little to no room to negotiate market prices. Technically, there is an on-farm exemption when it comes
to the use of plastics. However, plastics will be regulated throughout the supply chain and at the retail level. How will these costs manifest themselves throughout the system? It is highly likely some will push through to the marketplace, possibly further increasing food and agricultural prices, while some will have to be absorbed at the processing and farm level. The irony is not lost on us that while elected officials in California lament an affordability crisis, they continue to drive up costs throughout the supply chain with environmental mandates that have no obvious, cost- effective solutions. Coupled with the affordability crisis, California’s term limits work against us as these laws are passed and the original legislators that supported various bills have no obligation to follow-up to ensure they are successfully implemented, cost effective and workable. California legislators can pass bills and move on to their next job. As an example, the legislator who authored SB 54, is term limited this year. Patchwork of Regulations It is important to note that California’s version of this regulation was not the first in the nation. Oregon, Colorado, Maine, Maryland, Minnesota and Washington have passed packaging laws, and several other states are considering similar legislation. So, while we work through our process in Sacramento, it is imperative that we work
THE BRANDS YOU TRUST NOW UNITED AS ONE
exactcorp.com & jackrabbitequipment.com To see our complete line of harvesters, carts, conditioners, sweepers, shuttles, elevators & more, please visit:
BUILT BY FARMERS FOR FARMERS…WE UNDERSTAND!
27
MAY–JUNE 2026
Made with FlippingBook - Online Brochure Maker