Food Safety Modernization Act and Differential Revenues to Differently Sized U.S. and Foreign Tomato Producers
By: Zhang, Lisha ; Seale, James L. Jr. ; Paggi, Mechel S. ; Schmitz, Troy G.
Zhang, Lisha ; Seale, James L. Jr. ; Paggi, Mechel S. ; Schmitz, Troy G., Food Safety Modernization Act and Differential Revenues to Differently Sized U.S. and Foreign Tomato Producers, Journal of Agricultural and Resource Economics, Volume 45, Issue 3, September 2020, Pages 571-588
The Food Safety Modernization Act (FSMA) provides new U.S. food safety standards to lower the incidence of foodborne diseases. We analyze the FSMA in terms of adoption effects on differently sized domestic and foreign farms producing fresh tomatoes for the U.S. market. Findings indicate that adoption of the FSMA will negatively affect the revenues of very small farms the most as well as small U.S. farms. However, it will positively affect the revenues of foreign farms (especially Canadian) and large U.S. farms. This may lead to the restructuring of tomato production and distribution in the U.S. tomato market.