Why do you think it’s the “small/medium businesses and farmers” that anyone is claiming is responsible for the gouging? And not the large food megacorps that dominate low cost foods?
Let's start with the biggest one which is that measures (let's say regulations) aimed at A (let's say megacorps) have their intended effect on A and most significantly on A.
In reality, the most influential and profitable companies will always have an easier way through whatever you throw at the sector then smaller, less profitable companies. The megacorps may even welcome / shape the regulation such that it harms their competitors that don't happen to have 30 lawyers on the payroll anyways.