A Growing Crisis

The High Cost of Food in California

California, the nation's leading agricultural producer, should theoretically have some of the most accessible and affordable food in the country. Instead, it is the most expensive state for groceries in the contiguous United States, with prices soaring far beyond national averages. The rising cost of food in California is driven by regulatory burdens, labor laws, energy prices and supply chain challenges, all of which are making it harder for families to afford even the most basic necessities.

The average household in California spends $1,200 per month on groceries, nearly $300 per week, making it one of the costliest places for food in the country, according to a HelpAdvisor study that analyzed information from the U.S. Census Bureau. This is $30 more per week than the national average, placing further financial strain on families already dealing with high housing, transportation, and utility costs.

Families with children face an even bigger burden, spending 41% more on groceries than households without kids. The increasing cost of food is making it harder for parents to make ends meet, and many are turning to food banks for assistance.

While high grocery prices in Alaska and Hawaii can be explained by the need to ship food from the mainland, California’s high costs are more puzzling—especially considering it produces over half of the nation’s fruits and vegetables. In addition to high fuel and energy costs, which increase food costs at every step in the supply chain from farm to grocery store several other factors drive food costs higher:

Regulatory Costs

According to research from California Polytechnic State University, San Luis Obispo, farmers in California have faced a staggering 1,400% increase in regulatory costs since 2006, while crop values have only risen 44% in the same period. The result? Higher food prices passed down to consumers.

Labor Shortages and Costs

Farmers must comply with strict labor laws, high wages, and farmworker overtime regulations, all of which have driven up operational costs.

Environmental and Workplace Regulations

The California Air Resources Board and other agencies have imposed costly regulations on agriculture, affecting everything from water usage to pest control. These policies add significant costs that contribute to California’s high food prices.

Farm Relocations

Many farmers are moving operations out of California to other states, Mexico or South America, where costs are lower and regulations less intrusive. This shift has led to consolidation of farms, a decline in multigenerational family farms and a reduction in locally sourced food.

The Impact on Californians

As food prices surge, more Californians are struggling with food insecurity. Grocery prices have risen 28% in the past five years, a jump that matches the total increase from the 15 years before the pandemic. Grocery shopping has become a financial burden for millions.

Food insecurity is no longer just an issue for low-income households. Even middle-income earners—those earning $100,000-$150,000 per year—are increasingly relying on food banks. More than one in five Californians is food insecure and 27% of households with children struggle to put food on the table.

Food banks are now stretched to their limits, reporting record-high demand from working families who simply can’t keep up with rising costs.