Jan 5, 2026Greenhouse labor outlook 2026
The U.S. horticulture industry has been hit hard by labor challenges. Farm owners are getting older, seasonal workers are harder to secure, the allure of owning a greenhouse growing operation is waning and fewer young people are pursuing farm careers.
Even if you’ve been navigating these ongoing challenges for years, 2025 may have felt especially challenging due to policy shifts and funding changes that rattled the framework growers have long relied upon in order to find and pay for farm labor.
Even though change seems to be the name of the game at the moment, we can look back at economic cycles to predict likely trends.
Applying economic theory to greenhouse growing
Studies show that when labor supply is depressed, three things happen: wages increase, farming methods change and food growing operations turn to innovation and technology to fill labor gaps.
National unemployment hovers around 4%, while rural areas sit just above 3%. Agriculture is facing a period of uncertainty and distrust in fiscal policies and programs, such as H-2A visas, that have traditionally supported seasonal labor. Domestic and foreign laborers are watching closely, often perceiving that farm work is risky, which is further depressing labor supply.
Farms across the country are weighing costs versus benefits when considering purchasing new automated or smart technology, increasing wages or modifying how and how much they produce. Should you reduce time spent pruning or weeding? Scale back on production completely? Maybe it’s time to let go of a few employees and purchase smart sensor technology. Or perhaps you need a more robust benefits package to draw in new skilled laborers.
You might be surprised to know that of these three trends, increasing wages is almost always the decision owners make. While robotics and precision tech are projected to increase on farms and in greenhouses, history shows that leveraging employee compensation structures to attract labor is often perceived as the most feasible option in the coming years.
Can you achieve financial stability by increasing wages?
Investing in labor is nothing new in horticulture, where labor costs account for 40% of yearly expenses. However, in this instance, the “spend money to make money” mindset is a little too simplistic. A truly feasible wage increase approach means building a compensation plan that supports financial stability, not just one that increases profits.
You might not be generating the kind of profit that allows you to increase hourly rates, but that doesn’t mean you can’t increase total compensation. Emerging trends include a room and board approach to paying employees, implementing bonus and referral systems, and forming strategic relationships with local educational institutions.
Instead of increasing hourly wages, some farmers are providing one to two meals per day for their employees. If the average meal is equivalent to $3 to $5, employers can maintain or even slightly reduce hourly wages while boosting total compensation.
Involving employees in the success of your business through bonuses and referral incentives means that the more profitable your business becomes, the more potential there is for them to earn money.
Partnering with local FFA chapters, high school ag programs and universities to source labor by offering paid or unpaid internships, training, mentorship or volunteer opportunities can ensure that you have the manpower needed to keep your business running without adding to your expenses. It is highly likely we will see a strategic push to involve younger generations in modern farming.
Funding options
The coming year could bring a shift in funding opportunities. Small- to medium-sized operators have traditionally relied on operating loans and USDA grants to fund labor expenses. In 2026, there may be more specialty funding options to help you get your compensation infrastructure off the ground as non- government entities take note of agriculture’s labor needs, particularly for specialty crops.
Before investing in the next best farming method, piece of technology or compensation incentives, it’s important to investigate non-traditional funding options that can help you offset increasing labor expenses.
— Michelle Klieger is an agricultural economist and strategist, and president of Stratagerm Consulting. She can be reached at michelle@stratagerm.com.
