California law could impact Texas egg producers

California law could impact Texas egg producers

A California law could have an affect on the Texas egg market if an amendment to the farm bill is defeated.

The California law puts egg farmers under strict regulations, making it tougher to produce eggs.

Now these same regulations may apply to egg farmers in Texas selling to California.

An economist professor at WT, Neil Meredith, Ph.D., says this could mean a price drop for eggs at the store, but it could hurt Texas egg producers.

"Prices my actually drop, as eggs that would be sent to California are kept here instead. But that may hurt egg producers as they are now selling fewer eggs but for a lower price then they were before because now the demand from California has now effectively been shut off."

But now there are concerns this law could go beyond eggs.

"There is the greater principal at stake, that if California is able to do this ... Where does it stop with other states?

DeDe Jones with Texas A&M Agrilife Extension explains if the amendment is not passed on the farm bill it could eventually affect other agriculture production in Texas.

"Next California or any other state says, well, you know, we have these laws about beef production. And so suddenly we are not going to take any animals out of Texas unless you conform to our state laws. The reason why this amendment is so important and that it passes is that is regulates states rights."

But Meredith says he doesn't think this is anything Texas has to worry about long term. "One California will drop their law. Two the US congress will overrule them and put something in the farm bill. And three the US court system will eventually rule it out and it will be declared that California law can not apply to out of state egg producers."

Texas is the fifth largest in the nation in egg production, producing more than 5-billion annually.