Bearing The Brunt Of California’s Rising Costs

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. Progressive policies have driven inflation, leaving millions struggling to afford basic necessities. 

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. 

The San Joaquin Valley, one of the state's top agriculture producing regions, is one of the most impacted regions. These rural communities rely heavily on agriculture not just for food production but for stable, year-round employment. Local dairy producers play a critical role in ensuring access to affordable, nutritious food, particularly for those in need. In 2023 alone, California dairy organizations donated over 3.6 million pounds of dairy products, while the USDA acquired tens of millions more for government programs and food banks. Milk remains one of the most sought-after items due to its affordability, nutritional value and versatility across cultures. 

However, a shift toward increased regulation has harmed farmers and the livelihoods of those who depend on the food production industry for their employment. Stricter regulations risk accelerating the decline of small family farms, leading to industry consolidation, job losses and economic hardship that will ripple through the entire region, from farmworkers to truckers, banks, local businesses and even schools. 

This trend has already started and is sure to continue, as there’s no sign of prices decreasing anytime soon. In the last four months, three major food processing plants in the San Joaquin Valley announced their plans to close up shop. Fosters Farm 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 that they will be closing down their East Lemoore plant in early 2026 after over a century to invest in a new operation 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 announced their plan to sell its tomato processing plant in Hanford, which is home to over 400 employees. The plant’s closure will follow two other recent tomato processing plant closures in California: the Kingsburg Del Monte facilities and the Olam tomato plant in Lemoore.

California has the highest poverty rate in the country, with over 5.1 million residents living in poverty. As food prices continue to rise, increasing regulatory burdens on essential food producers will exacerbate food insecurity and additional economic hardship in vulnerable communities. Protecting the agricultural and food production backbone in California is essential to ensuring food affordability and economic stability for millions. 

Low-income families and vulnerable populations bear the brunt of California’s rising costs.