California’s rising costs are hitting low-income families and vulnerable populations the hardest, particularly when it comes to food insecurity and poverty. Grocery prices have surged 28% in the past five years, matching the total increase seen in the 15 years before the pandemic.  

California is the leading agriculture-producing state in the nation, home to a majority of the fresh fruit, vegetable and tree nut production, as well as a central pillar of the nation's dairy, grains and meat production. So why are prices rising so much more in the Golden State than elsewhere? The cold, hard truth is that environmental and climate regulations and laws coming out of Sacramento have driven up the costs of fuel, energy and water, which in turn increases costs on basic goods and necessities millions of Californians are struggling to afford every day. 

More than one in five Californians is food insecure and over a quarter of households with children struggle to put food on the table. Families with children face an even bigger burden, spending 41% more on groceries than those without kids. California remains one of the costliest places for food, with the average household spending $1,200 per month – nearly $300 per week. These rising costs, coupled with high housing, transportation and electricity expenses, are stretching California families to their limits.

This shift toward increased regulation has harmed farmers and the livelihoods of those who depend on the food production industry for their employment. Stricter regulations also accelerate the decline of small family farms, leading to industry consolidation, job losses and economic hardship that ripples through entire regions, from farmworkers to truckers, banks, local businesses and even schools.  

There are no signs of relief or prices decreasing anytime soon. Major food processing plants in the San Joaquin Valley continue to close up shop. Foster Farms announced their plan to close a turkey processing facility in Turlock in May 2025, laying off over 500 employees in the process. Leprino Foods announced the closure of their East Lemoore plant in early 2026 after investing in new operations in Texas, cutting over 300 local jobs. The company cited the high operating costs in the state as one of their main reasons for the departure. Del Monte Foods recently sold its tomato processing plant in Hanford, which is home to over 400 employees and is closing down the state's last peach cannery. 

The high cost of doing business in the state, regulatory complexity and permitting delays, have made it harder for processors to operate and invest here. As regulatory burdens and food prices continue to rise, food insecurity will worsen and additional economic hardship in vulnerable communities will occur. Recognizing the importance of the state's rural agricultural and food production backbone is essential to ensuring food affordability and economic stability for millions.