The Senate Subcommittee on Investigations recently held a hearing to continue a year-long investigation on excessive wheat speculation, reported the Independent Bakers Association.

The Senate panel concentrated on how the lack of convergence between wheat futures and cash prices causes artificially inflated prices that negatively impact farmers, grain processors, bakers and consumers.

Hayden Wands, director of procurement at Sara Lee Corp, spoke about skyrocketing wheat prices and how bakers and smaller businesses were affected. When asked by the panel of Senators who gets hit the hardest, Wands replied, “grain elevator operators and farmers take most of the risk, however bakers feel the price surges significantly as well.”

The House of Representatives recently passed legislation, giving the FDA more authority and resources to prevent foodborne illness outbreaks, according to The Wall Street Journal. Under the House bill, the FDA would be required to conduct more frequent inspections and would have greater oversight over record keeping and traceability. Most food companies also would reportedly be required to register with the agency and pay an annual fee of $500 for each of their facilities.

While ABA is supportive of improving food safety, ABA remains concerned with facility registration fees in the House bill that will ultimately act as a new tax on food. “The unfortunate impact of this bill will mean higher costs for food producers and consumers,” said Robb MacKie, ABA president and C.E.O. “The registration fees included in this bill greatly impact the baking industry. Only 10 percent of our facilities produce baked goods, while 90 percent of our facilities are low risk, short term, storage facilities.”