A new association-funded study claims that families in Vermont will spend $1,050 more per year on groceries as a result of a state law requiring labels on foods containing genetically modified organisms.

The economic analysis by the Corn Refiners Association came only a few days after the chairman of the Senate agriculture committee unveiled a new bill that would block states from enacting mandatory GMO labeling laws like the one in Vermont. The legislation drew praise from agriculture industry associations, which have argued that labels are not only costly, but they are based on health claims that have no basis in science.

The "legislation brings both transparency and consistency to consumers, manufacturers and growers, by ensuring more access to information while allowing a safe, proven technology to remain a critical part of modern agriculture," CRA said in a statement.

The Vermont law is currently set to go into effect July 1. CRA hired the economic research firm John Dunham and Associates to study the impact the labeling mandate would have on the cost of groceries. The researchers concluded that while labeling alone would cost Vermont families only about an additional $50 more per year, that cost would swell to $1,050 per year as grocery manufacturers switched to more expensive non-GMO ingredients to avoid the negative public perception labels would generate. http://bit.ly/219IU4P

GMO labeling supporters are not buying CRA's numbers. In a blog post, Scott Faber, a lobbyist for the Environmental Working Group, noted that food companies change their labels all the time to highlight innovations or make new claims. He also pointed to research that found GMO labels did not scare off consumers, as CRA asserts. http://bit.ly/1QtBjTq

While both sides argue over costs, opponents are championing federal legislation that would prevent states from enacting mandatory labeling laws. A bill introduced by Sen. Pat Roberts (R-Kan.) would replace mandatory labels with a voluntary, nationwide system. It is similar to legislation that cleared the U.S. House of Representatives last year.

Food industry groups are throwing their support behind the new bill. The American Frozen Food Institute said it would prevent "the creation of a complicated patchwork of state-based labeling rules." The International Dairy Foods Association said the legislation "provides a common-sense, national food labeling standard that brings consistency and transparency to the marketplace."

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