Category: Vegetables

The Food and Drug Administration issued draft guidance on its second round of voluntary sodium reduction targets in packaged and prepared foods, the agency’s latest effort to address diet-related diseases connected with high sodium intake.

Average sodium intake for Americans over the age of 1 is about 3,400 milligrams a day, which exceeds the latest Dietary Guidelines for Americans recommendations. Excess sodium intake can raise blood pressure, which puts individuals at greater risk of heart disease and stroke, according to FDA. 

Efforts to cut overall sodium intake is part of the White House National Strategy on Hunger, Nutrition and Health to reduce diet-related diseases by 2030. 

The proposed targets announced Thursday build on the first sodium reduction goals issued in 2021, which groups were working to meet by April. After it’s finalized, Phase 2 would set a new industry goal to work toward for the following three years.

The draft guidance suggests sodium levels for 163 food categories that are commercially processed or prepared in restaurants and other food service establishments. 

More than 70% of total sodium intake is added during food manufacturing and commercial food preparation, according to the FDA. The targets included the second phase would support cutting sodium intake to about 2,750 milligrams per day, which is a 20% cut from intake prior to the 2021 targets. 

Phase 1 targets aimed to reduce sodium intake from 3,400 milligrams per day to 3,000.

FDA is taking comments on the proposed new targets until Nov. 14. 

FDA also released preliminary data on the first set of targets, comparing sodium levels from 2010 to 2022. It found that 40% of food categories had already met Phase 1 sodium targets, or were within 10% of meeting those goals. 

“Reducing sodium in the food supply has the potential to be one of the most important public health initiatives in a generation,” said Jim Jones, FDA deputy commissioner for human foods, in a release. “The early successes we’re seeing with sodium level reduction in certain foods is encouraging and indicative of the impact we believe our overall nutrition approach can have on the wellbeing of society.” 

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The greatest cuts in sodium were seen in the packaged food categories, with 60% of these items cutting sodium. Restaurant foods showed less progress, with 35% of those categories reducing sodium while 49% of the categories increased. 

In specific food categories, toddler and baby foods had the most progress with all categories decreasing sodium, with some manufacturers exceeding Phase 1 target reductions. This was followed by dairy products, cereals and meat and poultry categories. 

Additionally, as of 2022 manufacturers of some toddler and baby foods had exceeded Phase 1 target reductions. 

Fruit, vegetables and legumes demonstrated the smallest reductions in sodium among food categories. About 21% of those categories reduced sodium while 47% increased. 

FDA expects to have a more formal evaluation of Phase 1 progress when data from 2024 is available. 

USDA is seeking public comment on the implementation of the SUSTAINS Act, which incentivizes the private sector to support federal conservation programs by matching agency funds. 

The SUSTAINS Act was signed into law through the Consolidated Appropriations Act of 2023, and was championed by House Agriculture Committee Chairman Glenn “GT” Thompson, R-Pa. 

“Agriculture is at the forefront of the nation’s effort to conserve our natural resources, and we want to hear from people on the ground how to implement this legislation to maximize its benefits, promote equity and assist all producers,” Terry Cosby, chief of USDA’s Natural Resources Conservation Service, said in a release.

The legislation allows the private sector to help fund the implementation of conservation practices to sequester carbon, protect drinking water and improve wildlife habitat. The Agricultural Conservation Easement Program, Regional Conservation Partnership Program, Emergency Watersheds Protection Program are included under the bill. 

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The agency is looking for public input on how to use private funding to address specific natural resource concerns. The request for information, which was scheduled to be published in the Federal Register Friday, includes questions on the program prioritization, administration, environmental benefit accounting and producer interest and participation.  

NRCS is particularly interested in improving program delivery by dedicating the additional funds to increase outreach and access to underserved producers, according to the RFI notice. 

Interested parties can submit comments by Sept. 16. 

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Agri-Pulse and Agri-Pulse West are your comprehensive sources of the latest in agricultural information. We take a holistic approach to covering current ag, food and energy policy news and we never miss a beat. We make it our duty to inform you of the most up-to-date agricultural and food policy decisions being made from Washington, D.C. to the west coast and examine how they will affect you: the farmer, the lobbyist, the government employee, the educator, the consultant, and the concerned citizen. We investigate several aspects of food, fuel, feed, and fiber industries, looking at the economic, statistical, and financial trends and evaluate how these changes will impact your business. We provide insight on the people and players who are making things happen. Agri-Pulse provides you with timely updates of how policy decisions will affect your productivity, your pocketbook, and your livelihood. Whether it be new developments in international trade, organic foods, farm credit and loan policies, or climate change legislation, we keep you abreast of the information you need to stay on the cutting edge.

Tim Walz leaned on values he learned during his rural upbringing in Nebraska, his time in Congress, and his record as governor of Minnesota to make the case that Kamala Harris should be president of the United States — and he should be the vice president.

In his acceptance speech at the Democratic National Convention Wednesday, Walz said that as a congressman from 2006 to 2018, he “learned how to compromise on issues like growing the rural economy and taking care of veterans.” He also said he “learned how to compromise without compromising my values.”

Walz was a member of the House Ag Committee while representing the largely rural 1st District in southern Minnesota. 

Recounting his boyhood in Butte, Nebraska, a town of 400, Walz said he learned that neighbors take care of one another, even if they may not share the same religion or other values.

And as governor, he touted his signing of legislation to provide free school breakfast and lunch for schoolchildren. While other states were banning books in their schools, he said, “we were banishing hunger,” a line that got huge cheers.

Walz’s speech was only about 15 minutes long, and was preceded by testimonials from former students and the appearance of members of Mankato West High School’s 1999 state championship football team.

Walz’s speech was largely a repeat of the one he gave in Philadelphia when he was first announced as Harris’s choice.

He criticized Project 2025, the Heritage Foundation’s plan for a new Republican administration, saying that as a former football coach, he knows that “when someone takes the time to draw up a playbook, they’re gonna use it.”

Walz began by saying, “It’s the honor of my life to accept your nomination for vice president of the United States.”

He ended by likening the Democrats to a team that is down by a field goal in the fourth quarter but has the ball.

“We’ve got 76 days — there’ll be time to sleep when you’re dead,” he said.

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President Joe Biden will address the Democratic National Convention tonight to help kick off what the Democrats hope will be an important step toward retaining control of the White House – and both chambers of Congress. 

The convention is being held in Chicago for the first time since 1996. Former candidate Hillary Clinton and ex-Presidents Barack Obama and Bill Clinton also are expected to speak, according to news reports, with Obama to appear Tuesday. 

Take note: During the DNC, several issue-specific caucuses will be holding meetings through Thursday, including the Rural Council, the Environmental & Climate Crisis Council, and the Labor Council. 

Kylie Oversen, the Democratic National Committee’s Rural Council Chair, says Kentucky Gov. Andy Beshear is scheduled to appear Tuesday along with his lieutenant governor, Jacqueline Coleman, and Ag Secretary Tom Vilsack is slated to appear Thursday.  

Oversen, a former state legislator from North Dakota, says the council is hoping to organize “rural tours” involving surrogates from the campaign in battleground states and beyond “as much as we have the capacity to do so.” 

By the way: A group called the Rural Urban Bridge Initiative will provide training to DNC attendees on the “rural urban divide” and “why Democrats have lost millions of rural and working class voters.” There also will be a session on strategies and tools for reaching rural voters.According to the Pew Research Center, former President Trump increased his share of the rural vote from 59% in 2016 to 65% in 2020.

Former Walz colleague says he’ll appeal to rural voters 

Former Wisconsin Democratic Rep. Ron Kind tells Agri-Pulse he thinks vice presidential candidate Tim Walz can help Democrats win back some rural voters. “I think people in rural communities can relate to him and his background, and he certainly works harder to get into those areas and listen to them,” Kind said of the Minnesota governor.

Meanwhile: Kip Tom, who’s leading fundraising efforts for the Farmers and Ranchers for Trump 47 Coalition, is especially concerned about what a Harris administration would mean for tax policy. He worries farmers will see higher capital gains taxes on farm assets and a reduced estate tax exemption.

New analyses estimate impact of key Harris, Trump proposals 

Former President Donald Trump’s proposal to impose a 10% base tariff on all imports and a 60% tariff on goods from China would cost the average U.S. household $1,800 in 2025, a cut in income of about 1.8%. That’s according to an analysis by the Tax Policy Center of the Urban Institute and Brookings Institution. 

The impact would be considerably higher going up the income scale. Households in the top 20% would lose $6,480 in income on average next year, according to the analysis. 

A separate analysis of Vice President Kamala Harris’ latest economic proposals estimates they would increase the federal deficit by $1.7 trillion over 10 years.  That’s taking into account a $250 billion reduction in pharmaceutical spending under one of her plan’s proposals, according to the Committee for a Responsible Federal Budget. 

Keep in mind: The analysis doesn’t try to account for the impact of Harris’ plan for restricting food price increases. Other proposals she’s made in recent weeks, such as exempting tips from taxes, also aren’t included in the analysis. 

Harris said her first-ever ban on food price gouging would come with penalties for “opportunistic companies that exploit crises and break the rules,” while supporting smaller food businesses. Her plan would “secure new authority” to allow the Federal Trade Commission and state attorneys general to investigate and penalize companies found to be increasing prices unfairly. 

By the way: On Sunday, GOP vice presidential candidate JD Vance ripped into Harris’ proposal on Fox News. “Giving Kamala Harris control over inflation policy … is like giving Jeffrey Epstein control over human trafficking policy,” he said.

Perdue recalls products after metal wire found in some items 

Perdue Foods LLC has recalled about 167,000 pounds of frozen, ready-to-eat chicken products over possible metal contamination. So far there have been no reports of adverse effects after eating the products.

The contamination was identified after Perdue received complaints about metal wire in the products. The recall applies to various frozen, ready-to-eat chicken tenders and nuggets.  

The recalled items were produced in March, but USDA’s Food Safety and Inspection Service says it’s concerned the products may still be in consumers’ freezers. FSIS urges consumers to throw these items away or return them to their place of purchase.  

USDA declines to ban checkoffs’ animal testing 

USDA has denied a petition submitted by People for the Ethical Treatment of Animals to ban six checkoff programs from using any funding for experiments on animals.  Agency officials say in a letter that checkoff programs “have the discretion to implement animal welfare testing protocols, including prohibiting animal testing.”

The letter says a USDA mandate prohibiting animal testing, however, “does not fall under the [the checkoffs’] authorizing statutes nor [the Agricultural Marketing Service’s] oversight responsibilities.” 

Take note: The National Mango Board and the Hass Avocado Board have individually adopted animal testing policies, according to PETA. The petition sought animal testing rules for the National Watermelon Promotion Board, the Mushroom Council, the United Sorghum Checkoff Program, the United Soybean Board, the U.S. Highbush Blueberry Council and the Washington Red Raspberry Commission. 

Final word: A Washington Post/ABC News poll released Sunday found Kamala Harris with 49% support compared to Donald Trump’s 45%. Including third-party candidates, Harris comes in at 47%, Trump at 45% and Robert F. Kennedy Jr. at 5%.  The Post said the head-to-head lead for Harris is not statistically significant.

Democratic delegates approved a wide-ranging platform Monday night that largely embraces environmental and other policies of the current administration — not surprising, given that the platform was written before President Joe Biden stepped aside in favor of Vice President Kamala Harris. 

The 91-page platform details the Biden administration’s implementation of the Inflation Reduction Act, including a program to compensate farmers and forest landowners who have faced discrimination by USDA.

“Over $2 billion has already been distributed to more than 40,000 people,” the platform says. “The Agriculture Department estimates that Black and underserved farmers have benefited most.”

The platform also continues to stand by Biden’s goal of net-zero greenhouse gas emissions by 2050 and net-zero methane emissions by 2030.

Biden “has taken more environmental actions than any president before him,” the platform says, specifically citing a ban on the insecticide chlorpyrifos. EPA banned use of the chemical in 2022, but a federal appeals court overturned the decision. The agency is expected to allow continued use on 11 crops.  

In the platform, which is nonbinding, Democrats say, “We’ll reward Americans across the country who engage in voluntary conservation on private lands, and we’ll work with landowners to protect endangered species and our economy by restoring habitats and enhancing biodiversity, and continuing to protect lands and waters as National Monuments.”

The platform continues to commit to preservation of 30% of U.S. land and water by 2030.

The Democratic platform contains four paragraphs specifically on agriculture, saying that “American farmers are the backbone of our country” but that — in an echo of Ag Secretary Tom Vilsack’s “whiteboard” speech — “over the years … Big Agriculture moved in, telling too many small farms that the surest path to success was to get big or get out. As a result, we lost over 400,000 farms in America in the last 40 years, and rural communities have paid a steep price.”

In addition, “The Inflation Reduction Act is helping farmers and ranchers adopt climate-smart practices, boosting farm incomes and connecting them to new markets. The [Biden] administration has also supported independent meat and poultry processing, reducing producers’ reliance on big companies to buy their product; and it’s working to make livestock and poultry markets fairer and more transparent.”

The document also says Democrats “are working to improve workers’ safety at meat processing facilities, and we will continue to enforce and advance labor and environmental rules [by], for example, promoting organizing rights and requiring overtime pay, and boosting protections against harmful pesticides and extreme heat.”

The Democratic platform also includes a proposal on tax policy that would risk a fight with many ag groups.

“We’ll eliminate the ‘stepped-up basis’ loophole for the wealthiest Americans, so they can’t avoid paying taxes on their wealth by passing it down to heirs,” the platform says. The only time it mentions the estate tax is to criticize Republican plans to eliminate it entirely. 

Stepped-up basis means that the capital gain on an inherited asset is calculated from the date that the original owner died, rather than when he or she acquired the property. Under current law, heirs don’t owe taxes until the assets are sold.

Biden proposed in 2021 to tax capital gains at death but the idea never got anywhere in a Democratic-controlled Congress. 

The estate tax exemption was doubled by the Tax Cuts and Jobs Act in 2017 and is now $13.6 million per person; the doubling of the exemption is scheduled to expire at the end of next year along with a number of other TCJA provisions important to agriculture. 

The only specific reference in the much shorter GOP platform to agriculture comes in a section on protecting “American Workers, Farmers, and Industries from unfair Foreign Competition.”

“We commit to rebalancing Trade, securing Strategic Independence, and revitalizing Manufacturing,” the platform says. “We will prioritize Domestic Production, and ensure National Independence in essential goods and services. Together, we will build a Strong, Self-reliant, and Prosperous America,” the GOP document says.

For more news, go to www.Agri-Pulse.com

The Democratic National Convention heads into its second day today in Chicago. Former President Barack Obama will headline the evening’s slate of speakers.

Monday evening, the delegates approved a 91-page platform that affirms key Biden administration policies, including the president’s goal of net-zero greenhouse gas emissions by 2050. 

By the way: The platform also calls for eliminating stepped-up basis, calling it a “loophole for the wealthiest Americans.” Farm groups argue stepped-up basis is critical for keeping family farming operations together.

Harris thanks Biden in surprise appearance at DNC

The convention Monday night featured a surprise appearance from Vice President Kamala Harris. She was welcomed with cheers and delivered a few short remarks, thanking Joe Biden for his “historic leadership.”“We are forever grateful to you,” she said, before telling the crowd, “We all have so much more in common than what separates us.”Delegates during President Joe Biden’s address Monday night at the Democratic National Convention. 

By the way: House Ag Committee member Jasmine Crockett, D-Texas, got in a reference to the farm bill in a speech Monday night. She blamed Trump’s “MAGA” supporters in Congress for blocking border security measures, aid to Ukraine, and “even the farm bill.”The farm bill has never been put on the House floor and only received four Democratic votes in committee.

Immigration advocate: Take the deportation pledge seriously

The U.S. should offer visas to immigrants who plan to work in essential food supply chain jobs, an advocate for immigrants said at a DNC event Monday.

Andrea Flores, vice president for immigration policy and campaigns at fwd.us, and other representatives from the group, also emphasized the need to create pathways for immigrants to obtain legal status.

“The public wants border security and border control,” Flores said. “They also want policies that protect undocumented immigrants and that give immigrants better legal pathways to come to the U.S.”

She called the convention “an unprecedented moment … where immigration has actually risen to a major issue in a presidential election,” noting the issue was not as important to voters from 2008 to 2020. 

Deportation? Flores also said Americans need to “take seriously” former President Donald Trump’s pledge to deport undocumented immigrants, although any plan to do so would likely take some time to implement.

Trudeau pushed to head off rail strike

U.S. farm groups are appealing to Canadian Prime Minister Justin Trudeau to head off a railroad strike that could disrupt grain shipping this fall.“

A lockout or strike would lead to shutdowns or slowdowns of rail-dependent facilities resulting in harmful consequences for Canadian and American agricultural producers, the agricultural industry, and both domestic and global food security,” says a letter signed by the National Grain and Feed Association, the Agriculture Transportation Coalition and other groups.

The letter goes on to say that a “strike would be particularly severe on bulk commodity exporters in both Canada and the United States as trucking is not a viable option for many agricultural shippers due to their high-volume needs and the long distances for many of the movements.”

A strike could begin as soon as this week, if the Canadian National and Canadian Pacific Kansas City railways can’t reach an agreement with their unions.

Lawmakers push ‘strategic initiative’ for bird flu

A bipartisan group of lawmakers is pushing USDA to create a strategic initiative for avian influenza similar to what the department has done in the past for deadly E. coli bacteria.

Such a unit within the Animal and Plant Health Inspection Service could coordinate research on issues such as vaccines, as well as advanced biosecurity measures and wild bird deterrents, according to a letter the lawmakers sent to Agriculture Secretary Tom Vilsack.

“Unprecedented times require action, and establishing an initiative that brings the brightest minds together to discover effective methods to combat HPAI will be essential to eventually eradicate this disease and protect our farmers,” says the letter led by Rep. Randy Feenstra, R-Iowa, and Jim Costa, D-Calif.

In a statement to Agri-Pulse, a spokesman for the department outlined the steps that have been taken to address the latest outbreak in cattle and birds. “USDA has forged many strategic partnerships across our own agencies, with other federal and state partners, and with researchers all over the country. These collaborative efforts have allowed us to protect farmworkers and farmers, the health and welfare of livestock animals, and reaffirmed the safety of the food supply,” the statement says.

Milk, dairy leaders appeal to agencies on dietary guidelines

Leaders of milk and dairy organizations are concerned that the advisory committee for the Dietary Guidelines for Americans isn’t exercising proper transparency in drafting its 2025-2030 recommendations. 

The president and CEO of both the International Dairy Foods Association and the National Milk Producers Federation have written to USDA and the Department of Health and Human Services to express their concerns with the guidelines process. 

Specifically, the two worry the current process lacks transparency in why certain scientific studies are included to inform conclusion statements.

Additionally, the organizations are concerned with the apparent emphasis on food pattern modeling, which they wrote cannot track the long-term health benefits and costs of various foods. 

On dairy issues, the groups are concerned that DGAC appears to be focusing on plant-based, dairy alternatives that are “not nutritionally equivalent.”

The authors of the letter, Michael Dykes of IDFA and Gregg Doud of NMPF, urged against guidelines that result in the avoidance of dairy. The DGAC is set to hold a final meeting in September before submitting its recommendations. However, HHS and USDA have the final word on the guidelines. 

Final word: “I think no matter what happens, there’s going to be people in both parties that are going to want to make sure that we don’t upset the reasonable expectations of farmers and ranchers about their ability to pass their farm and ranch to the next generation.” – Senate Ag Committee member Michael Bennet, D-Colo., when asked by Agri-Pulse about his party’s proposal to eliminate stepped-up basis.

California Advocates has added Adam Quiñonez as managing director. He most recently oversaw state relations for the Association of California Water Agencies, where he led a team of advocates representing more than 470 public water agencies. Quiñonez will transition to the California Advocates team after the legislative session. 

The International Fresh Produce Association announced the 2025 board of directors slate to be confirmed by a ballot at the 2024 Global Fresh Produce & Floral Show in Atlanta. Yan Branco of Sobey’s has been tapped as Retail Council chair and Hans Leibbrandt of Monfrut for the role of Chile Council chair. At-large representatives include: Mohammed Abbas of Del Monte Fresh Produce, Steve Barnard of Mission Produce, Dave Chen of Equilibrium Capital/Perfection Fresh, Sonya Constable of Sprouts Farmers Market, Jan Doldersum of Rijk Zwaan, Jim Hancock of Sam’s Club, West Mathison of Stemilt Growers, Chang Hwa Oh of Jinwon Trading, Shubha Rawal of IG International, Jose Rossignoli of Robinson Fresh, Shaily Sangvhi of Driscoll’s and Maria Wieloch of ICA Gruppen. 

USApple elected new board officers. Brett Baker, president of United Apple Sales, will serve as board chair. He was raised on a fruit and vegetable farm in Ransomville, New York, and is the son of Paul Baker, the 1989 USApple chair. Baker succeeds 2023-24 USApple Chair Steve Clement, who currently serves as CEO of PNW Tree Fruit in Washington. Other elected board members include Steve Smith, vice chair, of Washington Fruit; Philip Glaize, III, secretary, of Glaize Apples in Virginia; and Kaari Stannard, treasurer, of New York Apple Sales. 

Rebecca Meyers joined Honeybear Brands as national sales director. She joins the apple grower, packer and shipper company with more than 20 years of experience in the fresh fruit industry, most recently working at Auvill Fruit Co. Meyers will lead the business development team in her new role. 

Target tapped Amy Tu as chief legal and compliance officer and corporate secretary. She was most recently president of international at Tyson Foods. She has also served in legal and leadership roles at Boeing. Tu succeeds Don Liu, who is retiring. She will assume her new role on Sunday. 

CoBank promoted Matt Hale to vice president of the water division. He has been with CoBank for 16 years, most recently in the position of electric distribution division vice president. 

Matthew Caswell joined Green Capitol LLC as a partner. Most recently a senior agribusiness executive at AGP, Caswell will work on sustainable development policy with agriculture, energy and environment clients. He is an Iowa native and served as 2020 board of directors chairman for the Iowa Agribusiness Association. 

Neil Gormley is departing from his role as senior attorney at Earthjustice. Gormley is launching Wild Potomac, a nonprofit group working on conservation along the Potomac River. 

The North Dakota Beef Commission hired Rhiannon Wenzel as a communications specialist. The North Dakota native recently graduated from Bismarck State College with degrees in graphic design and communications. 

Drew Lingle started a new position as manager of clean energy policy initiatives and strategy at CF Industries. He joins the company from the House Committee on Energy and Commerce where he was a professional staff member. Lingle also previously worked on agriculture, energy, environment and trade issues for Sen. Kevin Cramer, R-N.D., for nearly four years. 

Starbucks tapped Angela Anderson as director of sustainability and supplier commitments for global supply chain. She worked at the National Pork Board and Dairy Management Inc. before joining Starbucks in 2022. 

Rantizo added Rachel Lium to staff as content marketing manager. Lium most recently worked on the marketing team at CHS. 

Mark Walton recently co-founded GRS International, a consulting group providing regulatory support and services to public and private developers in the animal agriculture space. He previously worked at AquaBounty Technologies Inc. as the chief technology officer. 

Shannon Scruggs Campagna is the new CEO of the Congressional Management Foundation. She will lead the bipartisan foundation that supports Congress. 

Laurel Caes started a new position as global marketing lead for solutions as a service at John Deere. She has been with the company for 13 years, most recently working on platform evangelism business transformation. 

Western Growers awarded Hudson Treloar the group’s annual scholarship. He will pursue a master’s degree in aerospace engineering at the University of California, Los Angeles this fall. 

Greg Henderson, editorial director of Drovers at Farm Journal Media, died unexpectedly last week. He was 57. Before transitioning to editorial content, he started his career in farm radio and was a longtime advocate of the beef industry. His memorial service will be held at a later date, according to his obituary. 

Frank Gilardi, co-founder of Freshway Foods, died July 8. He was 66. Frank and his brother Phil purchased the assets of their father’s wholesale company in 1988 to co-found their company, Freshway Foods, in Sidney, Ohio. Gilardi’s services were held in mid-July. 

Ed Duda, former CEO of DUDA, died Aug. 11. He was 91. Ed began his career with the family company in 1957 and held a variety of roles before being elected president in 1977. He retired from the company in 1998 from the post of CEO. He continued to serve on the company’s board of directors until 2005. He also served in an array of industry groups, including the Sugar Cane Growers Cooperative of Florida, chairman of the former United Fresh Fruit and Vegetable Association and trustee of Florida Institute of Technology. His memorial service will be Saturday at 11 a.m. at St. Luke’s Lutheran Church in Oviedo, Florida.

For more news, go to www.Agri-Pulse.com. 

Legal experts and economists say it’s hard to tell how a federal ban on price gouging in the food industry would work, and they warn that price controls such as those suggested by Vice President Kamala Harris could come with unintended consequences.

Harris has vowed to pass the “first ever federal ban on price gouging,” adding the plan will “include new penalties for opportunistic companies that exploit crises and break the rules. “We will help the food industry become more competitive,” Harris said at an event last Friday.

There’s no universal definition for price gouging — but its use, at least in the current debate, could be interpreted as “unnecessary increases in price above cost,” according to Arizona State University agribusiness professor Tim Richards.

Gouging would be “completely opposite” of inflation, which is the general rise of all prices. If gouging were to occur, it would happen amid a price spike, or a short-term cost increase above average. 

Still, it’s hard to pin down exactly what Harris sees as price gouging, and the lack of clarity has left some observers questioning what she truly means. 

“I think the price gouging line, which sure got attention, was not advised, especially without a much more explicit one-sentence or two-sentence ‘what I mean by price gouging is,’” said University of Wisconsin-Madison law professor Peter Carstensen, who noted that it “opens the door to all kinds of fantasies.”

Price gouging laws are currently in place in around 37 states, with varying triggers and applications, according to the American Bar Association. Many are regional and don’t kick in unless some sort of emergency disaster, like a hurricane, is declared in the midst of rising prices. Some also apply only to certain products like food, gas or medical supplies.

While a potential Harris policy has been presented in the context of food, it’s unclear whether it would also apply in the case of emergencies. Her focus on high grocery prices could indicate a broader policy that could apply without an emergency situation, said Weber State University economist Gavin Roberts. 

Such policies also come with risks and only benefit consumers in instances where one company holds a monopoly over the industry, Roberts said. Price controls could lead to product shortages and may not address, and possibly even contribute to, what is often the root cause of the pricing problem – industry concentration.

“Doing price gouging regulation is like putting a bandaid on the situation, because the problem, the disease, is some type of lack of competitiveness in the industry,” Roberts said, noting that under general economic theory, more competition helps to keep prices consistent and price gouging restrictions discourage outside competitors from jumping into markets during high-profit periods.

One route Harris could take would be to bar companies from increasing the price of any item by a certain percentage within a certain period of time like a month or a year, Roberts said. 

If she made the percentage threshold high enough, such a policy would only be triggered by drastic price changes and violations, at least in the grocery sector, would occur rarely, if ever. Doing this would allow Harris to keep her campaign promise without drawing too much attention to the actual policy.

Barring price increases over a lower threshold, such as 1% a year, could come with consequences, Roberts warned. Competitors would face less incentive to jump into sectors where profits are increasing, if the government could step in and regulate prices. That in turn could lead to more consolidation in the food and grocery industry. 

“It becomes a circle at that point because the beginning of the conversation is usually about competitiveness,” Roberts said. “So we want to be very careful about getting in the way of that competitiveness.”

A less likely approach could be to force grocery retailers to justify price increases by requiring them to show federal enforcers cost-of-production information, though Roberts noted that such a policy would impose greater bureaucratic burden. 

Harris could also be signaling an intent to throw her weight behind a price-gouging bill proposed earlier this year by a group of Democratic senators, said Joe Maxwell, the president of the Farm Action Fund. That bill would list price gouging as an unfair and deceptive practice under the FTC Act, require public companies to disclose their costs and pricing strategies, and “create an affirmative defense for small businesses acting in good faith.”

Maxwell applauded Harris’ focus on price gouging, which he called “spot on.” Some of the actions she’d need to take, like providing additional authorities and resources for the FTC, would likely require congressional action, he noted.

Harris’ potential pursuit of a price gouging ban could also separate her from current President Joe Biden when it comes to competition policy, Maxwell noted. Biden himself has not made the push for a similar FTC-centered authority, he said. 

“I think that she’ll not just do lockstep everything that President Biden was looking at,” Maxwell said. “I think she’ll have her own approach.”

Harris’ economic plan also calls for for a crackdown on “unfair mergers and acquisitions,” and says she intends to “support smaller businesses, like grocery stores, meat processors, farmers, and ranchers, so those industries can become more competitive.”

The Justice Department’s antitrust division, in addition to setting up an agriculture-focused team of enforcers in Chicago, has brought a case against information firm Agri Stats. DOJ also worked with the Agriculture Department to create a joint portal for producers to submit comments and concerns about anticompetitive behavior.

The USDA, meanwhile, has unveiled a series of Packers and Stockyards Act rulemakings aimed at preventing companies from engaging in retaliatory or discriminatory action against producers.

“The optimist in me wants to read what she says as much more of a broader commitment to the policy that the Biden administration is pursuing: enhanced competition, enforcement both as a regulatory matter at various agencies and enforcement of antitrust laws,” Carstensen said of the plan’s language.

For more news, go to www.agri-pulse.com.