2017
DOI: 10.1093/aepp/ppx039
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Economic Effects of the U.S. Food Safety Modernization Act

Abstract: The Food Safety Modernization Act (FSMA) substantially expands the authority of the U.S. Food and Drug Administration to regulate fresh produce marketed in the United States. This article uses an equilibrium-displacement framework incorporating stochastic food-borne illness outbreaks to simulate long-run market effects of FSMA using the North American fresh-tomato industry as a case study. We demonstrate how, under FSMA, certain categories of suppliers will gain advantage over others. Growers and suppliers wit… Show more

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Cited by 18 publications
(23 citation statements)
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“…Furthermore, the simulation results at the U.S. state level suggest that the gains from the trade reform are unequally shared by individual states. The finding is consistent with Bovay and Sumner (2018), who suggested that large produce growers benefit more than smaller scale growers under the Food Safety Modernization Act (FSMA). Specifically, we find that large exporting states tend to benefit more from the potential trade liberalization.…”
Section: Simulation Results and Policy Implicationssupporting
confidence: 88%
“…Furthermore, the simulation results at the U.S. state level suggest that the gains from the trade reform are unequally shared by individual states. The finding is consistent with Bovay and Sumner (2018), who suggested that large produce growers benefit more than smaller scale growers under the Food Safety Modernization Act (FSMA). Specifically, we find that large exporting states tend to benefit more from the potential trade liberalization.…”
Section: Simulation Results and Policy Implicationssupporting
confidence: 88%
“…Organic produce farming is often thought to be a hotspot of enteric pathogen transmission, and increasingly, farmers are encouraged to remove wildlife habitat from their farms (Beretti & Stuart, ). Adhering to these Good Agricultural Practice recommendations can be extremely cost prohibitive to small‐scale growers (Bovay & Sumner, ). Therefore, understanding risk of enteric pathogen spillover within this system is particularly important.…”
Section: Literature Search and Analysismentioning
confidence: 99%
“…In other words, smaller farms have higher average costs per acre in food safety investments relative to larger farms. Market equilibrium models incorporating foodborne illness outbreaks that simulate long-term market effects have also demonstrated large growers will benefit more from FSMA relative to small growers [19]. The results of these studies have caused concern regarding the continued financial feasibility of smaller farms given the relatively larger cost burden they face in meeting increasing food safety regulatory requirements.…”
Section: Introductionmentioning
confidence: 99%