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Thursday, April 10, 2025

House committee examines inflation impacts on agriculture sector

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State Rep. Keith Greiner | Pennsylvania 43rd Legislative District

State Rep. Keith Greiner | Pennsylvania 43rd Legislative District

Members of the House Majority Policy Committee gathered in Brownstown, Lancaster County, to discuss the significant impact of inflation on the agriculture industry. Rep. Keith Greiner (R-Lancaster) hosted the hearing where several individuals from different sectors within agriculture provided testimony.

Greiner emphasized the importance of understanding food production processes and acknowledged the challenges faced by those involved due to inflation. "Food production is so vital in our day-to-day lives, but people don’t always think about where our food is coming from – who’s growing it, who’s processing it and who’s delivering it," he stated. He expressed gratitude for their work and highlighted the need for policy measures to alleviate inflation's burden on producers and consumers.

Testifiers at the hearing shared experiences of rising costs affecting their operations. Bill Beam, president of Beam Farms Inc., reported a near 100% increase in nitrogen prices and substantial hikes in phosphorous and potash costs compared to last year. Chris Pierce, president of Heritage Poultry Management Services, pointed out that energy costs are significantly impacting poultry farms, advocating for greater U.S. energy independence.

Daniel Good, former CEO of Good Transport Services, noted substantial increases in truck pricing and parts costs such as tires and brake drums. Mike Smucker, president of Smucker's Meats, mentioned labor cost challenges due to increased wages necessary for hiring and retaining skilled workers.

Doug Taylor from Taylor Chip Cookie echoed similar labor issues affecting his business operations. Heather Lewis from Mount Joy described managing inflation as akin to dealing with a ratchet strap—tight yet essential for security.

The committee's chairman, Rep. Martin Causer (R-Cameron/McKean/Potter), remarked on recurring themes from various hearings related to labor, regulatory costs, and notably energy being central to these issues. "We have the resources to generate more of our energy here at home and that should be a top priority," he commented.

This was the fifth hearing conducted by the committee examining inflation's effects on businesses and consumers.

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