REGULATORY OVERKILL

How Sacramento policies are harming farming, food production and rural communities

In the heart of California, irrigated agricultural acreage declined by 1,000,000 acres between 2002 and 2017 and could further shrink an additional 500,000 to 1,000,000 acres by 2040. Where agriculture once thrived and rural communities bustled with food processing jobs, a wave of red tape regulatory overreach from Sacramento is choking the life out of one of the most productive food production regions in the world. Politicians, armed with an ever-growing stack of climate, labor and energy mandates, are pushing farms, food processors and energy suppliers to the brink. The economic toll is mounting — and rural communities and Californians are paying the price.

According to a report by Cal Poly San Luis Obispo and Monterey County Farm Bureau on regulatory costs, the burden on California agriculture has risen over 1,400%, reaching unsustainable levels. Farmers are now forced to comply with a labyrinth of red tape that touch every aspect of their operations — from water usage and pest control to labor practices and equipment emissions. The report reveals that these costs not only stifle productivity but also disproportionately harm small and medium-sized growers who can't afford compliance consultants and costly upgrades. These regulatory costs are also a huge barrier of entry for young and beginning farmers who want to get their foot in the door, which is sure to leave California in a pickle when the current generation, which has an average age of over 58, hangs up their hats and exit the industry.

But it’s not just farmers feeling the squeeze. Major employers in food processing and energy are packing up and leaving the state, with devastating consequences for rural workers and local economies. Many of these communities already suffer from chronic, double digit rates of unemployment and high levels of poverty.

JOB LOSS TSUNAMI

Several cornerstone food processing facilities have announced closures, each citing California’s hostile business climate as a primary driver:

  • Leprino Foods, East Lemoore: Hundreds of jobs will lose their jobs come early 2026 when this cheese processing plant closes, which the company attributed to high operating costs in California and investing in a new facility in Texas.

  • Foster Farms, Turlock: Over 500 jobs were affected this May as the company shuttered its fresh turkey processing plant.

  • Frito-Lay, Rancho Cucamonga: After 50 years of operation, PepsiCo is shutting down this plant, potentially cutting hundreds of jobs.

  • Smithfield Foods, Vernon: The meat processor closed shop in 2023, citing the skyrocketing cost of doing business in California — especially utilities and labor.

  • Del Monte, Hanford: This closure will cost 378 employees their jobs in Kings County, where alternative employment options are limited. The company recently filed for bankruptcy protection.

  • Olam Food Ingredients, Firebaugh: The spice plant and warehouse shut down in December 2024, impacting 275 workers in the rural Central Valley.

Each of these closures paints a bleak picture of Sacramento’s regulatory overreach: one that fails to weigh the real-world consequences for working families.

Refinery Closures Add Fuel to the Fire

The economic bleeding doesn’t stop with agriculture. California’s energy sector is also under siege. Valero Energy and Phillips 66 recently announced plans to shut down two major oil refineries in the state. These closures, driven by relentless red tape, environmental regulation and permitting obstacles, will decimate jobs and slash 20% of the state’s refining capacity.

What does that mean for farm, food production and everyday Californians? Higher fuel prices, more supply volatility and a worsened cost-of-living crisis. Rural and working-class communities — also reeling from job losses in agriculture and food processing — will be hit hardest.

Conclusion: Time for Balance

California’s regulatory environment is no longer just “tough” — it’s becoming untenable. Lawmakers in Sacramento must wake up to the real cost of overregulation. Protecting the environment and workers is vital, but balance is critical. Without it, we risk dismantling the very industries that feed our families, fuel our rural economies and employ millions.

California can no longer afford to ignore the warning signs. Jobs are leaving. Plants are closing. Fuel is drying up. And real people are paying the price.

Sacramento politicians must reverse course on their regulatory overkill agenda.