Jul 26, 2024

Survey reveals ongoing farm labor challenges for growers

In the ever-changing landscape of agriculture, vegetable industry farm labor challenges remain a persistent concern for growers in the U.S. 

The latest labor survey, conducted by Vegetable Growers News and its sister publication Fruit Growers News highlights rising wage costs, H-2A reliance, and strategies growers are adopting to cope.

Labor shortages persist

In 2019, 59% of respondents reported having enough labor, while 41% faced shortages. By 2023, only 46% said they had adequate labor, a trend that continued into 2024. This shift underscores the deepening struggle for growers to meet their labor needs.

H-2A usage and outsourcing trends

The H-2A program remains critical for many operations. In 2024, half of respondents reported using H-2A workers, with 83% outsourcing recruitment. However, only 49% fully outsourced the program and labor management.

“The new H-2A legal process and wages have caused my company to completely outsource our labor force to handle recruitment,” one grower wrote. “With increased wages and labor contractor fees, I have been forced to reduce the quantity of my workforce. A smaller workforce means I have to manage harvest more efficiently and spend more money to work overtime. Overall, the new wages and legal process has significantly cut into my bottom line and margins.”

Rising costs strain growers

Cost topped the list of concerns, with 44% citing affordability issues tied to H-2A.

“The increasing costs of the program and wages continues to put some growers at competitive disadvantage to others,” a grower stated. “If you are able to raise prices to offset increased costs, then you may be able to come out ahead but if you are a price taker then you can’t.”

Another grower added, “New wage is too high. Labor is up, fertilizers up, shipping up, chemicals up, food in the store is up, etc. But I’m still getting the same amount for our veggies. If this keeps going and more farms go under and are no longer farming, where will our SAFE food come from? Something needs to be done with the H-2A wage.”

Chris Butts, vice president of the Georgia Fruit & Vegetable Growers Association, echoed those concerns. “Georgia is becoming increasingly reliant on the H-2A program, especially in terms of fruit and vegetable production. Our industry is faced with double-digit wage increases and regulatory burdens are increasing. Economically, it is becoming unviable to use H-2A, but unfortunately it is our only option. We’re in a bad place right now.”

Profitability under pressure

For 21% of growers, new wage requirements directly reduced profitability and sustainability. One respondent said, “The Adverse Wage Rate is not affordable for us. Our commodity prices are not increasing at the rates to afford this wage. We are forced to raise less hand-harvested crops.”

Others shared frustration: “Makes me wonder why! Why do these pay rates keep increasing? Especially since they are basing these numbers off the workforce of U.S. workers that does not exist. I would like to continue to grow mu business, but I will not be able to due to new added costs on labor.”

Regulatory and program burdens

About 16% of growers said they were using the H-2A program less or considering dropping it due to wage increases. Another 14% cited regulatory hurdles as major obstacles.

“Too complicated, we need our same people to return every year,” one grower said.

Another noted, “We are not sure how much longer we will be able to afford to participate in this program. It has become so expensive. The bottom line is very thin.”

Impact on crop production

Some growers (7%) reported reducing acreage or hand-harvested crops to manage costs. One respondent wrote, “We are lowering the amount of acres we produce on in order to cut costs. If the costs are not lowered, we are considering getting out of fruit altogether. That’s a big decision as we are fifth generation growers. It’s a huge national food security problem that needs to be addressed.”

Another grower added, “We have been removing crops that require hand labor because prices for wages are no longer profitable.”

Coping strategies for labor shortages

Growers are adopting diverse strategies to adapt to vegetable industry farm labor challenges, including:

• Automation: 26% are considering mechanization, especially for harvesting (64%) and weed control (53%).
• Growing less: More than half (54%) said they are scaling back crops to manage constraints.
• Other approaches: These include seeking alternative labor source, shifting marketing strategies, and evaluating government programs.

“This year we have cut back our use of H-2A from over 100 to 25,” one grower said. “We cannot afford the rising labor costs.”

Looking ahead

Survey responses also revealed deep concerns about the future. Nearly 9% expressed doubts about the long-term viability of their operations under current wage structures. Growers warned that without policy reforms, the nation’s food supply could be at risk.

“Trade and labor are two overarching issues now and everything else plays second to that,” Butts said.

The findings highlight how vegetable industry farm labor challenges — from wages to regulation — continue to weigh heavily on growers. While automation and new strategies offer some relief, industry voices are calling for urgent policy challenges to secure the future of U.S. agriculture.

Click here to take a look at the survey results.

— By Debbie Eisele and Doug Ohlemeier