Hoosiers can expect to pay about three cents more for eggs in 2018.
The law requires any eggs sold in California to come from hens that have space to stretch out in their cages.
Some residents are fighting a proposed egg farm that could have up to two million hens in rural southwestern Indiana.
Studies say consumers believe brown, cage-free eggs have a higher nutritional value than white, caged eggs, but scientists don't necessarily agree.
The food bank will distribute the eggs to local food pantries and soup kitchens in the area.
Monroe County's Hoosier Hills Food Bank receives a large donation.