Newsom Signs McNerney’s Bill to Help Farmers Fight Hunger
Gov. Gavin Newsom has signed Sen. Jerry McNerney’s SB 881, the Farmer to Food Bank Tax Credit.
SB 881 enables farmers, growers, and food producers to continue 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 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 benefits 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.”
Gov. Newsom signed SB 881 last night. The legislation was sponsored by the California Association of Food Banks and Californians Against Waste.
"Thank you, Governor Newsom and Senator McNerney, for supporting California’s farmers, reducing food waste, fighting climate change, and getting food to people in need, all at the same time. Since its creation in 2011, California's Donated Fresh Fruit or Vegetables Tax Credit has enabled California food banks to provide high-quality, California-grown and manufactured foods to communities across the state. As H.R. 1 food and healthcare cuts lead more Californians to seek food assistance, state programs that help food banks receive fresh foods are more needed than ever,” said Stacia Levenfeld, chief executive officer of California Food Banks.
“California grows more than enough food to feed its people, yet too much of that food goes to waste while families are continually struggling to put food on the table. With recent cuts to hunger prevention programs putting even more pressure on food banks, it is essential that we do everything we can to get good food to the people who need it,” said Nick Lapis, director of advocacy at Californians Against Waste. “SB 881 will give farmers an incentive to donate surplus food to food banks who will ensure it ends up where it belongs. That is a win for farmers, a win for families, and a win for reducing food waste.”
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
SB 881 takes effect immediately and extends until 2032 a highly successful incentive program that provides state tax credits to farmers, growers, and food producers who donate surplus food to food banks. The Farmer to Food Bank Tax Credit program, which produced $10.7 million of food donations in 2024, was scheduled to expire Jan. 1. SB 881 will also extend until 2033 the option for California taxpayers to donate to food banks on their state tax returns.
Under the tax credit program, farmers, growers, and food producers receive a 15% tax credit for their food donations.
Sen. Jerry McNerney’s 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.
