U.S. Agriculture Labor Expenses Forecast To Increase More Than 4 Percent in 2023

Anil K. Giri, Subedi. Dipak, Jonathan Law, Tatiana Borisova and Marcelo Castillo

Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, 2023, vol. 2023

Abstract: Total labor expenses (both hired and contract labor expenses) for the U.S. agriculture sector are forecast to be $42.09 billion for 2023, based on the February 2023 forecast by USDA, Economic Research Service. This would be an increase of $1.78 billion, or 4.4 percent, over the 2022 level of $40.31 billion (in inflation adjusted 2023 dollars) and the highest annual growth rate in percentage terms since 2016. However, inflation-adjusted labor expenses for 2023 are projected to remain below the high set in 2017. Labor expenses are an important component of agricultural production costs. For every $100 spent on production expenses, almost $10 goes toward labor. These labor expenses include contract and hired labor payments but exclude non-cash employee compensation.

Keywords: Agribusiness; Agricultural Finance; Crop Production/Industries; Demand and Price Analysis; Farm Management; Industrial Organization; Labor and Human Capital; Livestock Production/Industries; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersaw:338921

DOI: 10.22004/ag.econ.338921

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