Back in the headlines, the Supreme Court is scheduled to hear arguments from the NPPC and AFBF about concerns over California’s Proposition 12 restrictions. Prop 12, which sets confinement standards for sows, veal calves and egg-laying hens, bans the sale of any California-produced products that do not meet the standards. The eventual goal is to extend the law nationally, further restricting profits for producers across the U.S. Some producers nationwide have stated the law would force them to expand their operation footprint by upwards of 20%, which could drive further industry consolidation and push small producers out of business.

Farm groups are set to argue that the California law violates the Constitution’s interstate commerce clause, putting producers at risk during a time of already-difficult market volatility. While this is turning into a nationwide concern, California currently accounts for roughly 15% of pork sales within the U.S. and pork prices have seen inflation of 6-7%. Supporters of the farm group’s case against California include Canada, Mexico and even the Biden administration.

Read more on the latest California Prop 12 news.