Consumer Demands

No One is 'Winning' in a Prop 12 World: 6 Witnesses Testify Before House Ag Committee

Thu, 31 Jul 2025 16:44:46 GMT

U.S. pork producers and American consumers are facing significant cost increases due to Proposition 12. And the data keeps proving it. In a House Committee on Agriculture hearing, “An Examination of the Implications of Proposition 12,” Committee Chairman Glenn “GT” Thompson (R-PA) said Congress must provide a fix for Prop12.

“It begs the question – if producers are paying more, and consumers are paying more, who is winning?” Thompson said during the hearing on July 23. “Thankfully, the complexity and unfairness of Prop 12 has been realized by both sides of the aisle.”

Six witnesses testified before the full House Agriculture Committee on the implications of California’s Proposition 12 for farmers and food prices.

Overregulation Hurts Farmers
Pat Hord, an Ohio pork producer and vice president of the National Pork Producers Council (NPPC), shared his family farm’s story with the Committee. He said, “Despite producing Prop 12-compliant pork, I am here to say Prop 12, and an unmitigated regulatory patchwork, threatens our farm.”

Prop 12, a California ballot initiative, bans the sale of pork that does not comply with the state’s prescriptive and arbitrary production standards. Though enacted in a single state, Prop 12 has created sweeping consequences nationwide by fueling market volatility, imposing costly new mandates on producers, and paving the way for a patchwork of inconsistent state regulations.

“Spending my entire life raising pigs in a variety of ways, I’m convinced it’s best to allow production methods and consumption demands to take shape in the open market, as opposed to arbitrarily shaping them through poorly worded and short-sighted ballot initiatives,” testified Matt Schuiteman, a farmer and Iowa Farm Bureau board member.

The data shows Prop 12 is creating economic hardship. As of the first quarter of 2025, 12% of small pork operations have exited the market or shifted production away from breeding, citing regulatory uncertainty and high transition costs.

“Prop 12 opens a Pandora’s box of state regulatory overreach that threatens family farms across the country,” NPPC shared in a statement. “This overregulation hurts farmers, increases prices for consumers, and compromises our nation’s food security.”

Unjustified Price Increases
But it wasn’t just pork producers voicing their concern at the hearing over the obstacles caused by Prop 12.

“Harm is what Prop 12 has caused, smashing like a wrecking ball the livelihoods of small restaurants and the communities we serve by disrupting supply chains and dragging up the cost of culturally vital foods like pork,” said Lily Rocha, executive director for the Latino Restaurant Association. “It’s brought economic devastation to families already stretched thin.”

Rocha said Prop 12 is a death sentence for small businesses operating on razor-thin margins.

NPPC economist Holly Cook testified that USDA research and recent scanner data confirm the impact on consumer costs.

“A study released in 2024 by economists at USDA’s Office of the Chief Economist compared retail pork prices and volumes in California and the rest of the U.S. for a period preceding Proposition 12 (October 2019-June 2023) and for 8 months after its partial implementation date (July 2023-February 2024),” Cook said. “After subtracting any price increases that were also observed in the rest of the U.S., the study attributed the following prices increases in California to the impact of Prop 12: 41% increase in pork loin prices, 17% increase in pork rib prices, 17% increase in pork shoulder prices, 16% in bacon prices, and 20% increase in fresh ham prices. Overall, the report suggests a 20% average increase in the sales prices for pork products covered by Proposition 12 and minimal impacts on products not covered by the law, such as sausage.”

Recent retail data also revealed a decline in pork volume sales in California and a 2% to 3% decline in California’s share of national fresh pork sales. Retail scanner data compiled by Circana confirms that these trends have held up over subsequent periods, Cook added.

“From July 2024 to June 2025, the second year of Proposition 12’s partial implementation, prices for popular covered pork products in California were 24% higher on average, with a range of 12% to 33% higher across covered products, than they were in the year leading up to implementation (July 2022 to June 2023),” Cook said. “This compares to an average 3.6% increase for the entire U.S. over the same period.”

In short, Californians are spending more but consuming less pork than they were before Prop 12.

A Contentious Issue
Tiffany Dowell Lashmet, professor and Extension specialist at Texas A&M AgriLife Extension, noted the importance of recognizing that there are agricultural interests on all sides of the Prop 12 debate.

“Certainly, there are agricultural producers, groups and businesses in favor of congressional action to overturn Prop 12,” she said. “Similarly, there are agricultural producers, groups and businesses strongly against Congress taking such action, many of whom have already gone to the expense to comply after Prop 12 was passed and upheld by the U.S. Supreme Court.”

Ranking Member Angie Craig (MN-02) pointed out during her comments that Prop 12 is clearly a contentious issue, and merits thoughtful, bipartisan discussion.

“We cannot ignore the questions and challenges Prop 12 raises,” Craig said. “Even the Biden administration’s ag secretary said we need to treat this issue seriously to ensure stability in the marketplace. I agree that we cannot have 50 states with 50 different regulatory frameworks because of the significant challenges it would present to producers, but I believe that there are ways to avoid that situation.”

She also shared that many pork producers have made significant financial investments to make their operations Prop 12-compliant and that Congress needs to be mindful of the voters in California who exercised their rights under their state constitution to adopt this policy.

Thompson reminded the room that Justice Gorsuch noted several times in the majority opinion that Congress would be well within its power to act. Although Thompson doesn’t agree with the Supreme Court’s decision to uphold Prop 12, he agrees that Congress can and must act to rectify the burdens Prop 12 has imposed on interstate commerce.

Travis Cushman, deputy general counsel, litigation and public policy for the American Farm Bureau Federation, said in his testimony, “When a single state can condition access to its market on compliance with production mandates that override the judgment of veterinarians, farmers and experts nationwide, Congress must act. This is not a theoretical concern. It is already harming farmers, confusing the courts and threatening the viability of a national food system.”

Cushman believes the language that the Committee passed in the 2024 Farm Bill restores clarity, restores congressional authority and interstate commerce, and protects both producers and consumers from a patchwork of conflicting amenities.

The Patchwork Problem
“When we talk about any premiums that do exist in the market today, the prospect of a patchwork threatens the certainty and the sufficiency of those premiums in the long run,” Cook said following the hearing. “NPPC is seeking to provide certainty to all producers about the environment in which we’re going to be making these decisions and investing in the future of the industry.”

Cook said it was a long day on Capitol Hill, but it was encouraging to hear producers share just how much they care about the animals they raise.

In fact, Hord spoke to misconceptions that Prop 12 enhances animal welfare, citing American Veterinary Medical Association and American Association of Swine Veterinarians opposition to the law and how those pen requirements can “unintentionally cause harm” to animal welfare.

“There were some good discussions around producers caring for their animals and maximizing animal welfare, not only because it’s the right thing to do, but because they have every economic incentive to do everything they can to maximize animal welfare,” Cook reflected.

She noted there were productive discussions on the impacts of Prop 12 from the farm level through the supply chain and all the way to the consumer.

“Producer voices are so strong,” Cook said. “Being able to deliver their stories to their representatives and members of Congress on the impact these issues are having on their farms is always the strongest message lawmakers can receive.”

3 Factors Fueling Americans' Obsession with Protein

Mon, 09 Jun 2025 15:30:43 GMT

Meat is having a moment, and the craze for more protein is benefiting protein across the board. The fact cattle prices continue to crush records is proof of that, as well as the robust demand for pork.

“I am still bullish of dairy. I’m bullish of beef. I’m bullish of pork and poultry,” says Dan Basse, AgResource Company . “I think as you think forward, I see the next two or three years as being the years of protein. It’s that side of the fence in agriculture that’s going to do very well.”

Basse’s optimistic outlook on protein hinges on one major factor: consumers’ ability to pay for it.

“I’m still bullish of protein, until we see the labor force start to shrink in the United States, and I start to see disposable income coming down. Again, there’s not a period looking backward in history that I can find where disposable income on a personal basis has risen this quickly from 2020 to 2025,” he says.

“Meat protein, not just pork or not just beef, but meat is having a moment. I’m an economist, so I have concerns on the macroeconomic front, but it is exciting to be in an era where the public’s desire for meat protein is growing,” says Glynn Tonsor, a professor in the Department of Agricultural Economics at Kansas State University.

People Are Eating More Protein Than Ever Before

Cargill’s 2025 Protein Profile found people are eating more protein than ever before. The report found 61% of consumers report increasing their protein intake in 2024, which is up from 48% from 2019.

According to Cargill, the shift in shoppers’ preferences toward whole, minimally processed foods, is giving protein a chance to shine.

“It’s really important to remember the U.S. public wants meat protein,” Tonsor says. “There are a lot of signs. We are in a pro protein environment. I don’t think there’s issues. I actually think there is a celebration about the taste and the eating experience and so forth for all the major proteins.”

A Slight Shift in May’s Monthly Meat Demand Monitor

Tonsor also authors what’s called the Monthly Meat Demand Monitor (MDM) , which tracks U.S. consumer preferences, views and demand for meat. The first half of the year, the MDM continued to show consumers’ growing demand for protein, but in the report in May, it did show a slight shift.

“The biggest takeaway from the MDM would be we have two conflicting patterns,” says Tonsor. “One is the public really wants meat protein, but the macroeconomic environment is giving us some pause. So, we continue to see strong signals people want protein. Taste is leading that decision, so that’s good and very supportive, but we also see lots of uncertainty on the macro-economic front. So, trade discussions, elevated unemployment, inflation concerns and so forth. Those are not supportive of meat demand, so those are the two trends that are fighting the way out.”

Tonsor points out the May MDM showed a pullback in consumers eating away from home, like in restaurants, but showed a boost in retail demand, which would be grocery stores.

“But part of that is a substitution away from restaurants,” he says. “And that’s across the board. It’s not just pork or beef or chicken. It’s all of them that we track, so I do think it is a headwind that is growing here in 2025.”

Tonsor says if confidence in the economy rebounds, and tariff discussions ease, the restaurant piece of meat demand could quickly recover, especially considering we’re entering the summer months, where meat demand is typically higher.

3 Major Drivers Behind the Protein Craze

And even with the pause in restaurant demand in May, Tonsor says the push for consumers to eat even more protein doesn’t seem to be going away, and it’s being driven by three major factors.

“More people are having meat as an ingredient rather than center of the plate. So, it’s coming across as more convenient. It’s an input,” Tonsor says. “Also younger folks in particular are quite physically active, and their demand for protein and that broader lifestyle is elevated.”

Those two factors are strong drivers of meat demand, especially in the younger crowd. But another supportive piece of the growing demand for protein is related to weight loss drugs.

“We have a GLP-1 effect, so Ozempic, Mounjar and so forth, in the MDM, we put out a report earlier this year, showing maybe 15% of the U.S. public is using the GLP-1,” Tonsor says. “That’s a higher end, but that’s what we estimate. And if you are on those products, you’re actually consuming beef, pork and chicken more frequently.”

He says all of those things add up to support the growth in meat demand.

“It’s the income and the future status of my finances is mainly the only headwind at the moment, and that’s why I keep reiterating that concern,” Tonsor says.

Demand is What’s Pushing Cattle Prices to New Highs

It’s not just the hog industry that’s benefiting from the strong demand, both domestically and with exports

Cattle prices continue to crush records. But according to one veteran cattle analyst, it’s not historically tight cattle numbers pushing prices higher, it’s the strong demand.

“This price increase that we’re experiencing in the industry is demand-driven,” says Randy Blach, CEO of CattleFax. “Our per capita supplies were flat last year. They’re going to be flat again this year. And yet we’ve had a market that’s gone from a $1.75 to $2.25. That’s all been demand driven with what we’ve seen throughout the industry.”

The incredible demand is pushing beef demand to its highest level in nearly 40 years.

“Beef demands that are a 37-year high,” he says. “And I think when people think about demand, obviously quality has been the key to that. We’ve seen the quality of the animals being produced has increased substantially.”

As record-high cattle prices also push the cost of beef higher, that would push consumers to eat more pork and chicken in the past. But it’s a trend Tonsor is not largely seeing this time around.

“We see some of that, but not nearly as much as you might think. So, there’s less of that adjustment than historically we would have seen,” Tonsor says. “This is 100% Glynn’s opinion, but I think habits are a little stickier. Persistence of an item in your meal is a little sticker than in the past. Meat is an ingredient, not just the center of the plate. Higher beef prices have not elevated chicken demand as people have expected, and I think it’s because the consumer substitution effects, they exist, but they’re not as strong as they were 20 years ago.”

As consumers crave more protein, it’s a bright spot for all of livestock with many hopeful this isn’t just a trend but a permanent fixture on consumers’ plates.

Industry Shifts: What Cattle Producers See Coming In the Next 5 Years

Wed, 02 Oct 2024 16:03:11 GMT

Editor’s Note: This article is part of the Drovers 2024 State of the Beef Industry report, which includes an exclusive survey of cattle producers and their thoughts on numerous topics of importance to the future of their operations. To download the full report, click here .

In 2023, the State of the Industry Report asked about five aspects related to consumer pressure and expectations for change in the future: environmental impact, animal welfare, sustainable practices and desire of high-quality beef. In every instance, a strong majority of producers either agreed or strongly agreed each of those items will be increasingly important in the years to come. The numbers in 2024 line up almost exactly with 2023.

The survey report summarizes it succinctly: Producers foresee continued industry change ahead, mostly driven by consumer pressure.

Drovers State of the Beef Industry 2024 Report

(Farm Journal)

Viability is Top of Mind

Despite the challenges, producers are thinking to the future with plans to add a family member and grow their herd size. In fact, 54% of producers in this year’s survey indicate they plan to add a family member to the operation (versus 51% in 2023).

Even though it doesn’t appear the business will see rapid rebuilding , there are indications many of these operations are viable and plan on remaining that way in the future. That’s certainly a sign of brewing optimism among the respondents.

Your Next Read: Are Cattle Producers Rebuilding Their Herds Now?

Pasture to Plate: A Culture-Driven Beef Business

Wed, 26 Jul 2023 17:09:52 GMT

The Ducheneaux family reconnects consumers with their food source

Kelsey Ducheneaux-Scott sat on her front porch, stared out across rolling pastures and thought, “What the hell did I do?” She had just heaved box after box into freezers in the living room, kitchen and laundry room — carefully dispensing 1,700 lb. of ground beef.

Exhausted from the haul (and hoping the circuits wouldn’t blow due to strategically placed freezers) Ducheneaux-Scott couldn’t believe the sheer amount of work before her. How was she going to sell so much grass-fed burger in three months, before her next butcher appointment? Anxiety and stress seeped in during that cold March night in 2020. Little did she know how quickly that product would move.

“COVID hit and there was no beef in any of our stores,” Ducheneaux-Scott recalls. “We sold out of that 1,700 lb. in a matter of three weeks. People realized how easily local grocery stores can be disrupted here in rural South Dakota.”

(Farm Journal)

PASTURE TO PLATE

With a focus on feeding those around her, Ducheneaux-Scott is leading a transformation of her family’s operation. DX Ranch was established in the 1930s near Eagle Butte, S.D., on the Cheyenne River Sioux Indian Reservation. It began with beef cattle and draft horses.

Today, Ducheneaux-Scott and her husband, Monte Scott, work alongside her family raising quarter horses and 280 head of cow-calf pairs in a regenerative production system.

“I am a fourth-generation rancher on DX Ranch, and I’m the 125th generation to steward this landscape,” Ducheneaux-Scott says. “We’ve focused on ensuring we’re not just thinking about the livestock above ground but also thinking about the livestock below ground.”

(Farm Journal)

FATHER-DAUGHTER DUO

For her entire life, Ducheneaux-Scott has worked alongside her father, Zach Ducheneaux. That was until early 2021, when Ducheneaux was selected by the Biden administration to serve as the Farm Service Agency administrator (he received the call for the position while they were at the sale barn).

Luckily, Ducheneaux had prepared his daughter to be a leader on the ranch and in life. They are members of the Lakota tribe, which is a matriarchal society.

“My dad never let me think I couldn’t do something because I was a girl,” Ducheneaux-Scott says. “He empowered me to believe I could do things better because I was a girl and had a different perspective.”

After college, Ducheneaux-Scott wanted to be a rancher and bought into the family’s cowherd in 2016.

“I was obsessive in watching those calves grow that year,” she says. “I might as well have had names and birth certificates for every calf.”

After selling that calf crop, Ducheneaux-Scott headed back to the ranch and pondered the future.

“I drove through two counties that face food insecurity,” she says. “I thought, golly, the system is so broken. We have up to 80,000 head of cattle grazing on 3.2 million acres here on the Cheyenne River Sioux Indian Reservation, and there isn’t any local beef being packaged and made available for purchase. The beef grown here is phenomenal, but none of us get to actually eat it.”

At home, she scribbled down a bunch of ideas and started a business plan. That plan morphed into DX Beef , which has a simple mission: Provide nutritious and local beef that improves its communities.

The direct-to-consumer business featuring their 100% grass-fed beef has expanded in the past two years and is helping the family move away from the commodity market model.

“For the first 90 years of our existence, we’d largely been victim to the commodity markets just like everyone else,” Ducheneaux says. “Behind the effort of Kelsey, in 2020, for the first time, we sold more beef in the box than we did on the hoof. A tremendous advocate for buying, selling and serving

locally, she’s found a way to provide healthier, grass-finished beef to our fellow reservation residents at a price they can afford.”

In 2019, the family sold 12 head of cattle through their business. In 2020, they sold close to 80. This year the total will top 110.

All beef is processed and mostly sold through their online store. To meet local needs, it is sold by the pound or portion of the whole beef. They even do wholesale orders for nearby restaurants.

(Farm Journal)

CULTURE AND TRADITION

The hurdles of small-scale direct marketing are difficult to overcome. Yet Ducheneaux-Scott is seeing great success thanks to her marketing and organizational skills. Through storytelling, which is rooted in their Lakota culture, the family uses technology to share the story of their ranch and products.

“Family comes before the dollar in this operation,” Ducheneaux says. “We’re not solely about monetizing the value of that product, and we realize there are other values to our beef.”

(Farm Journal)

Their story is shaped by their love and respect for the 7,000 acres of tribal land they manage through a tribal lease.

“I’m a grass and soil nerd,” Ducheneaux-Scott says. “Soil health is so critical to a resilient ecosystem. Our grazing system is focused on mimicking nature. This ecosystem evolved from having cloven-hoofed bison and other wildlife graze at a pace that allowed for a robust rest period, so we practice rotational grazing.”

The DX Ranch herd is an Angus base, influenced with breeds that will help the cattle handle the sometimes-brutal central South Dakota climate, Ducheneaux-Scott says. From changing their calving season to May to decrease cattle stress to steadily increasing soil health, the Ducheneaux family aims to work with Mother Nature.

“We have flexibility in our management so we can listen to what the landscape is telling us because she knows better than we do,” Ducheneaux-Scott says. “We

are simply another biological species that’s a part of this greater ecosystem.”

Listen as Kelsey Ducheneaux-Scott discusses her operation with Andrew McCrea on the “Farming the Countryside” podcast:

OTHERS BEFORE ONESELF

As a producer, business owner and member of her nation, Ducheneaux-Scott says she is driven by the opportunity and honor to feed others.

“I’ve come to appreciate having someone tell say your beef tasted good or how they brought their family together around our product,” she says. “Those are the experiences that make feeding cows in a blizzard, slopping through the mud to check calves and sleepless nights all worth it.”

(Farm Journal)

Snapshot of DX Ranch

Operation: DX Ranch includes quarter horses and 280 head of cow-calf pairs in a regenerative production system on the Cheyenne River Sioux Reservation near Eagle Butte, S.D. The ranch is also home to DX Beef, a direct-to-consumer business featuring their 100% grass-fed beef.

Family: Following in the footsteps of her father, Zach Ducheneaux, Kelsey Ducheneaux-Scott is the fourth generation of her family to ranch. She and her husband, Monte Scott, work with several members of her family in the operation.

Leadership: Ducheneaux-Scott is the director of programs for the Intertribal Agriculture Council, which provides a voice for the Native American community on ag policy and programs. In 2021, Ducheneaux was selected to lead the Farm Service Agency, where he oversees 10,000 employees.

Travel to Gettysburg, S.D., and virtually visit DX Ranch.

Court Rejects Meat Institute’s Prop 12 Appeal

Mon, 28 Dec 2020 16:00:32 GMT

The North American Meat Institute’s challenge to California’s Proposition 12 has been rejected for a second time.

The U.S. Court of Appeals for the Ninth Circuit rejected the Meat Institute’s challenge to California’s 2018 ballot initiative that imposes new standards for animal housing. The Court’s Dec. 23 decision confirms an initial decision in October. After the October decision, the Meat Institute appealed for the challenge to be heard by the full panel of judges, but the panel “unanimously voted to deny appellant’s petition for panel rehearing.”

California voters approved the Prevention of Cruelty to Farm Animals Act with 63% of the vote. The law creates minimum requirements to provide more space for veal calves, breeding pigs, and egg-laying hens. By 2020, the law requires farmers to give egg-laying hens at least one foot of floor space, and to completely eliminate cages by 2022. Farmers must now give veal calves 43 square feet and sows 24 feet of space.

Challenges by the Meat Institute and others, however, centered around the fact the law applies to out-of-state producers of meat and eggs who want to sell products in California. Both the federal Department of Justice and 20 states joined the Meat Institute’s challenge, arguing the law will contribute to higher food prices for consumers.

“Prop 12 is unconstitutional and not only hurts consumers with higher prices for pork, veal and eggs, it is costly for the federal government’s programs designed to help those facing hunger, including the Emergency Food Assistance Program and the Supplemental Nutrition Assistance Program,” said the Meat Institute’s President/CEO Julie Anna Potts.

Related stories:

Court Upholds California’s Proposition 12

Good News: Consumers Continue To Choose Beef

Editor’s Note: This article is part of the Drovers 2024 State of the Beef Industry report, which includes an exclusive survey of cattle producers and their thoughts on numerous topics of importance to the future of their operations. To download the full report, click here .

The dominating theme in 2023’s State of the Beef Industry report was weather. While parts of the U.S. still grapple with dry conditions, the overall situation has dramatically improved versus this time last year, especially in the middle part of the country.

The reprieve has provided producers some opportunity to focus on other parts of the business. The topic that’s foremost of significance is the market — record prices have a way of doing that. Supplies are increasingly tight, but much of the market’s strength is attributed to resilient beef demand. Last year’s per capita beef spending totaled $461 — a new record by $14.

All-Fresh Beef Retail Price

(Farm Journal)

That’s especially encouraging given consumers’ No. 1 complaint about inflation involves food prices. The business is such that consumers have had every opportunity to trade down when it comes to their protein options, but they continue to choose beef, even at higher prices.

Those consumer dollars are flowing back into the production sector. As a result, fed cattle prices have established another set of new highs in 2024. While overall beef production has waned (due to lower cow slaughter), fed beef production has been running ahead of year-ago levels. That is, higher prices on bigger volume.

All of that is a testament to the importance of building, and maintaining, efforts to boost beef demand. The industry’s success toward improved quality and consistency, coupled with meaningful promotion, is paying dividends for U.S. producers.

Battle for Margin

Nevertheless, while fed beef supply has held steady, it’s likely that trend will be pressured in coming years. Beef cow inventory started the year at 28.2 million head. The Jan. 1 feeder cattle supply outside of feedyards was just 24.2 million head, down 5% from 2023 and off 10% from the recent peak of 26.6 million head in 2017.

Beef Cow Inventory

(Farm Journal)

Feeder Cattle Supply Outside Feedlots

(Farm Journal)

Therefore, numbers will remain tight in the coming years, and they will be further exacerbated if/when producers decide to hold back heifers to rebuild the cowherd. At that point, the industry is likely to see the peak in prices.

Just how high can prices go? That remains to be seen, but the battle for margin between the feedyard and the packer, and ultimately the retail and food service sectors, will be especially important to watch. In the interim, the cow-calf producer holds the cards and will continue to benefit from solid prices allowing the sector to string together multiple years of unprecedented profits.

Beef On Dairy

Last, but not least, the beef-on-dairy trend continues to influence the industry, proving to be an important contributor to the beef sector. In light of waning beef numbers, these calves will make up a larger share of fed beef in the next several years (as dairy cow numbers remain relatively steady). As a result, many feedyards are working to improve the quality and consistency of their beef-on-dairy supply chains. All of that means increased feedback to suppliers as the calves are easily traceable. Much of that influence will likely creep into the native supply chains.

Dairy Cow Inventory

(Farm Journal)