Ag Producers Looking for Best Ways To Cope With Ongoing Labor Issues

By Growing Produce|January 13, 2023

USDA’s Economic Research Service (ERS) is taking a closer look at one of the largest issues impacting the agriculture industry today: Labor.

In a recently published report, ERS economists analyzed how fruit and vegetable growers are coping with changing labor cost structures, which includes worker availability and rising wage rates. In addition, researchers looked at how three reactive strategies are adding to their production and management practices.

Strategy 1: Increasing Imports and Decreasing Domestic Production of Crops That Are Not Competitive With Imports

The largest U.S. firms also have growing operations abroad and may view strong U.S. demand for their fruits and vegetables as an economic opportunity. By growing the same crops in Mexico, these U.S. producers can supplement their domestic production with imports and fulfill contractual obligations year-round. By establishing farms in Mexico, these growers protect against potential losses from disease and weather events. Similar strategies have been observed among the largest strawberry growers.

Strategy 2: Using Machines To Generate Faster and More Efficient Work During Harvest

Creating mechanical harvesters requires advanced engineering and extensive trial and error. Breeders and plant scientists must work with engineers to develop plant varieties and technologies that work in concert. Their goals tend to be mutually exclusive, however, as engineers seek efficiency, while growers seek to preserve fruit quality and flavor.

Strategy 3: Employing More Guestworkers Under the H-2A Program

Research shows the share of H-2A workers among all crop workers is increasing. H-2A workers are estimated to make up about 10% of the nation’s crop workers. Growth in the program has been observed across all states over the last decade, suggesting that despite the higher wage rate and additional costs of employing workers through the program, producers are turning more often to H-2A guestworkers for their labor needs.