McNerney Introduces Bill to Help Farmers Fight Hunger

SACRAMENTO – State Sen. Jerry McNerney, D-Pleasanton, today announced the introduction of SB 881, new legislation that will help California farmers fight hunger. 

SB 881 will enable farmers, growers, and food producers to provide fresh fruits, vegetables, nuts, and more to food-insecure families and receive tax credits for donating surplus food to food banks.

“California farmers and growers are among the most productive in the world, and yet far too many Californians go hungry each year,” said Sen. McNerney who is chair of the Senate Revenue and Taxation Committee and a member of the Agriculture Committee. “SB 881 is a win-win. It will benefit farmers and food banks by helping ensure that surplus food from California’s bountiful harvest each year doesn’t go to waste and instead will help feed the hungry.”

SB 881 will extend until 2032 a highly successful incentive program that provides state tax credits to farmer, growers, and food producers who donate surplus food to food banks. The Farmers to Food Bank Tax Credit program, which produced $10.7 million of food donations in 2024, is scheduled to expire Jan. 1, 2027.

Senate Bill 881 is sponsored by the California Association of Food Banks.

"Since its creation in 2011, California's Donated Fresh Fruit or Vegetables Tax Credit has been a vital source of high-quality, California-grown and produced foods to our food banks. In this challenging time of increasing food insecurity and declining federal funding for food assistance, state programs that help food banks access fresh foods are more needed than ever,” said Stacia Levenfeld, CEO of the California Association of Food Banks. “We are thrilled that Senator McNerney is championing the renewal of this successful tax credit, which feeds hungry Californians while also supporting farmers and reducing food waste." 

SB 881 will also extend until 2037 the option for California taxpayers to donate to food banks on their state tax returns.

California currently produces nearly one-half of the nation’s vegetables and over three-quarters of the country’s fruits and nuts. And yet a substantial portion of California households struggle to put food on the table. Twenty-two percent of households and 27 percent of those with children experience food insecurity.

Hunger in California is also expected to worsen as grocery prices continue to rise and because the federal mega bill from last summer is expected to eliminate CalFresh (food stamps) for nearly 800,000 California households.

SB 881 will help fight hunger by continuing to provide tax incentives to farmers, growers, and food packers and processors who donate the following safe-to-eat foods to food banks until 2032:

• Fruits, nuts, and vegetables
• Meat, poultry, eggs, and fish
• Rice and beans
• Canned, frozen, or dehydrated fruits, nuts, and vegetables
• Cheese, milk, yogurt, butter, and dehydrated milk
• Infant formula
• Vegetable oil and olive oil
• Soup, pasta sauce, and salsa
• Bread and pasta
• Canned meats and canned seafood

Under the tax credit program, farmers, growers, and food producers receive a 15% tax credit for their food donations. In 2024, the incentive program cost the state approximately $1.6 million. If enacted, SB 881 would take effect immediately because it is a tax measure. The legislation needs a majority vote to pass.

Sen. Jerry McNerney’s 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.