New Study Shows High Costs of State Food Policy Changes

A new report commissioned by the Corn Refiners Association shows changes in state food labeling laws could cost consumers billions of dollars and hit budget-conscious consumers the hardest. According to the analysis, out-of-pocket expenses faced by consumers could increase by $2,200 per household in Texas and $900 per household in Louisiana.Following the release of the report, Corn Refiners Association President and CEO John Bode encouraged the Department of Justice to extend a comment period on a Request for Information concerning state laws with significant adverse effects on the national economy.“Everyone feels the impact of higher food prices, and any policy changes that will lead to higher grocery costs should be closely examined to avoid any unintended consequences,” said Bode. “Consumers face the prospect of a sharp increase in food prices due to policy changes authorized by state legislators. It is critical that the costs and benefits of food supply policy changes are purposefully assessed before increased costs are imposed on consumers.  “The Trump Administration has made addressing onerous policy provisions a major priority, and these bills are a prime example of why such work is necessary,” Bode added. “We agree with the broad Trump policy of not creating new requirements that impose consumer costs without significant evidence that the benefits outweigh the cost. We asked the Department of Justice to extend the comment period so there would be a greater opportunity for our organization and other concerned stakeholders to perform a more robust economic analysis of the impacts on consumers.”The Department of Justice issued a Request for Information on Aug. 15 concerning state laws having significant effects on interstate commerce. The report, prepared by Policy Navigation Group at the request of the Corn Refiners Association, notes that the figures are a screening-level analysis conducted within the time constraints of a 30-day comment period offered by the Department of Justice.Further, the report noted incremental social costs – which include monetary differences for alternative products as well as the cost of needing to purchase less desirable alternatives – from the Texas legislation could total $64 billion, more than $7,200 per household; the social costs of the Louisiana bill could total $12 billion, about $1,300 per household.  Passed by state legislators and signed into law in 2025, bills in Texas and Louisiana would enact food labeling requirements for specific ingredients that are widely used in the food industry in the U.S. and around the world.About the Corn Refiners Association (CRA) The Corn Refiners Association (CRA) is the national trade association representing the corn refining industry of the United States. CRA and its predecessors have served this important segment of American agribusiness since 1913. Corn refiners manufacture sweeteners, starch, advanced bioproducts, corn oil and feed products from corn components such as starch, oil, protein, and fiber.