Despite new aid, farmers say labor shortages significantly driving up prices
A 10% decline in U.S. farm employment raises food prices by nearly 3%, costing consumers about $3.4 billion, Michigan State University researchers report.
- On Wednesday, Michigan State University released a study finding a 10% drop in domestic farm employment raises prices of labor-intensive crops by around 3%, equating to nearly $3.4 billion in higher costs.
- A decline in immigrant labor and enforcement measures have reduced available farm labor, with the share of farms reporting shortages rising from 14% in 2014 to 53% in 2021 and staffing at about 79% capacity.
- On average, farmers said they could not hire 21% of needed labor, with growers reporting shortages force overtime, reduce yields and quality, and raise production costs.
- Farmers responded that they are `cautiously optimistic` about the H-2A visa program rule but warned it causes a `huge exodus in multi-generational farms`; the president announced aid starting late-February of 2026.
- Growers warned that wage increases and limits in the H-2A visa program make U.S. producers less competitive with cheaper foreign producers.
13 Articles
13 Articles
Ag labor shortages cause higher food prices, study finds
A study from Michigan State University found that when domestic farm employment declines by 10%, food prices of labor-intensive crops increase by around 3%. Specialty crop growers with the advocacy campaign Grow it Here said in a webinar Wednesday that…
Despite new aid, farmers say labor shortages significantly driving up prices
Amid the ongoing trade war brought about by President Donald Trumps unprecedented use of emergency powers to impose sweeping tariffs on most nations throughout the world, few industries or businesses have been more impacted than agriculture and U.S. farms.President Trumps tariffs have cost farmers upwards of $33 billion this year in increased input costs, a December report by the North Dakota State Universitys Agricultural Trade Monitor found, a…
U.S. farm labour shortages linked to higher food prices
New research from Michigan State University links changes in farm labour availability to rising food prices and reduced agricultural output in the United States. According to farm labour economist Zack Rutledge, a 10 per cent decline in farm employment results in an increase in food prices of nearly…
Farm labor shortages drive higher food prices, Michigan State research finds
New research from Michigan State University connects farm worker wages to rising food costs and the loss of agricultural production. Farm labor economist Zack Rutledge says a 10 percent decline in farm employment leads to a nearly three percent uptick in food prices. “And we have a specialty crop sector that’s worth about $115 billion […] The post Farm labor shortages drive higher food prices, Michigan State research finds appeared first on Brow…
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