UC Davis Professors of Agricultural Economics Release New Report that Shows Proposition 37 Will Increase Costs for California Farmers and Food Processors by $1.2 Billion

September 6, 2012

Prop 37 Will Significantly Harm All Farmers, Including Farmers of Non-GE Crops

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Davis, CA – Proposition 37 would result in $1.2 billion in higher costs for farmers and food processors, higher prices for consumers and a crush of costly regulations with no benefits, according to a new study by two University of California, Davis, agricultural economics professors.

“The proposed regulations have no basis in science and impose rules that would have significant costs for food producers, processors and marketers, and ultimately for consumers, while providing misinformation and no demonstrable benefits,” University of California, Davis, Agricultural and Resource Economics professors Julian Alston and Daniel Sumner conclude in a study released today.

Proposition 37 is a food labeling measure that would ban the sale of tens of thousands of safe, common grocery products only in California unless they are specially repackaged, relabeled or remade with higher cost ingredients. This new, 48-page report from researchers at one of the world’s top agricultural universities conclusively reveals that Proposition 37 threatens California’s economy and ability to compete with other states, and would impose costs directly on shoppers, farmers, manufacturers, seed companies, grocers and workers.

According to the study, Proposition 37 would:

“If passed, Proposition 37 would imply that necessarily ill-informed popular opinion should dominate accepted scientific consensus in determining government-set mandates on food,” conclude Alston and Sumner.

About the study’s authors:

Julian Alston, PhD, is a professor in the Department of Agricultural and Resource Economics, University of California, Davis.

Dan Sumner, PhD, is Frank H. Buck Jr. professor in the Department of Agricultural and Resource Economics, University of California, Davis, and director of the University of California Agricultural Issues Center.

Titles are for identification only. The report is the authors’ independent work and not a product of the University of California.