Adjusting to Higher Labor Costs in Selected U.S. Fresh Fruit and Vegetable Industries

Linda Calvin, Philip Martin and Skyler Simnitt

Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, 2022, vol. 2022, issue Economic Information Bulletin Number (EIB-235)

Abstract: This report examines how U.S. producers of selected labor-intensive fresh fruit and vegetables are addressing the rising costs of labor. Farm labor costs increased from 2010-19 for several reasons, including fewer newly-arrived unauthorized workers, rising State minimum wages, and new requirements to pay overtime wages to some farm workers. Rising labor costs often cause producers to adjust their production and management practices to compensate for the changing cost structure. Short-term options to meet the labor needs on farms include management changes, such as picking fields and orchards less often and introducing mechanical aids that increase worker productivity. Longer-term options include the use of more labor-saving mechanization, additional H-2A guest workers, and reducing overall domestic production.

Keywords: Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Demand and Price Analysis; Farm Management; Industrial Organization; Institutional and Behavioral Economics; Labor and Human Capital; Land Economics/Use; Political Economy; Production Economics; Productivity Analysis; Public Economics; Research and Development/Tech Change/Emerging Technologies; Resource/Energy Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersaw:329756

DOI: 10.22004/ag.econ.329756

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