The Bureau of Labor Statistics data shows the cost of living in the Seattle-Tacoma area is the second-most expensive in the country. Federal statisticians point to the higher cost of fuel and shelter in Washington state as the two biggest drivers of the Consumer Price Index (CPI) bump.
Washingtonians have noticed the pain at the pump for much of the spring and summer. According to recent reports, home-buying has dropped off courtesy of higher interest rates.
However, the cost-of-living increase is about more than fuel and housing. Many people have seen an increase in their grocery bill, too. The Bureau of Labor Statistics noted a year-over-year cost increase of 11.7 percent for fruits and vegetables. So, a tomato that cost $1 a year ago, now costs $1.12.
Increased costs at the store don’t always equate to increased income for farmers and ranchers. There are several stops between the farm gate and dinner plate; each stop adds cost to the food that eventually makes make it to a grocery cart.
Additionally, food producers are earning less of the money spent in the grocery store, not more. Additional dollars are going to other expenditures like fuel, marketing, power and labor, rather than to the farmworkers and farmers.
For example, the state’s tax on CO2 emissions, known as the Climate Commitment Act (CCA), increases costs for farmers in two ways. The authors of the CCA knew it would impact farmers and food prices, which is why they exempted agricultural fuel from paying the tax. The government system to claim an exemption, however, is onerous and incomplete, so many pay the tax.
Transportation costs have also increased for truckers paying the CCA. That cost is passed on to food producers and buyers. While that is the cost of doing business, it is a consequence of the CCA and a cost burden food producers bear.
Lawmakers have tried a few solutions to the CCA for agriculture. Among the attempts to rectify the issues with the CCA are the establishment of a rebate account and a public listing of all the gas stations that offer CCA-exempt fuel for agricultural purchasers. The best fix for agriculture would be a repeal of the CCA. The next best solution is one that blends a quarterly rebate system and provides access to CCA-exempt fuel pumps.
Ag fuel purchasers can get bulk deliveries from some purveyors without paying the CCA fee by submitting a form. If a farm does not have bulk tanks, the options are distinctly limited. That is when a rebate system allowing farms and ranches to submit fuel expenses quarterly for CCA fee reimbursement would be helpful. Additionally, maintaining the current listing of gas stations offering CCA-exempt fuel gives ag fuel purchasers the ability to seek out pumps to avoid fees.
Labor regulation is also driving costs up. Washington state’s farmworkers command some of the highest wages in the United States and our state has the dubious distinction of having the strictest overtime law in the country.
Washington state’s minimum wage – $17.13/hr. – is the highest in the country. Our state’s farmworkers command a higher average hourly wage, earning anywhere from $18-$23/hr., depending upon previous work experience and job description. Under the Washington state overtime law, all farmworkers are also eligible to receive time-and-a-half for every hour worked beyond 40 hours with no exceptions or rebates for employers.
We must address our wage structure by legislating a change to the overtime law. By extending the regular agricultural workweek back to 55 hours before overtime pay begins, farmworkers will benefit. The shortened workweek is stealing income from farmworkers accustomed to a shortened work schedule in the winter. The overtime law has forced many workers to consider taking on additional work, robbing farmworkers of time with their families and opportunity for leisure activities.
While the CPI indicates that everything from fuel and housing to fruit and veggies are more expensive, it is critical to avoid drawing a straight line from the grocery cart to the farm wallet.
Washington state should explore ways to mitigate policy that effects consumers and food producers whether it is a reenvisioning of the CCA, a retooling of our agricultural overtime, or incentivizing value-added agricultural products when appropriate, everything should be on the kitchen table to make food and farming more affordable for Washingtonians.
