This week, President Trump introduced a series of executive orders aimed at tightening immigration rules. These changes may affect both legal and undocumented immigrants, with agriculture feeling a significant impact due to its reliance on immigrant workers.
To understand these changes, we spoke with Patrick Smith, the CEO of Loftus Ranches, an apple and hops farm in Yakima, Washington. His farm depends on H-2A visa holders for labor. Patrick shared insights on how these policies could shape the future of farming.
Kai Ryssdal: How’s business going at Loftus Ranches?
Patrick Smith: Business is steady. Agriculture has its ups and downs, and right now, our primary crops—hops and apples—are experiencing a slight dip. We have a strong team and are focusing on what we can manage. We’re powering through.
Ryssdal: That’s good to hear. Let’s discuss your labor situation. Are you getting enough H-2A workers, and how much is it costing you?
Smith: We’re lucky to have the H-2 visa program; it helps us find the labor we need. However, costs are rising — much faster than inflation — leading to higher expenses for us.
Ryssdal: It sounds like your profit margins are getting tighter.
Smith: Exactly. A recent study by the Northwest Horticultural Council found that in 2023, Washington apple growers spent 99% of their revenue on labor. That leaves us just 1% for other essential costs like fertilizer and water. It’s not sustainable; back in 2013, labor costs were only 37% of our revenue per bin.
Ryssdal: That’s not a viable business model.
Smith: Right. Farmers like us are price takers; we don’t control apple prices. With inflation affecting everything, it’s hard to avoid passing costs on to consumers.
Ryssdal: Trump’s administration is making changes to immigration policy. How does that affect your workers?
Smith: Secure farm labor is crucial not just for us but for food security overall. If legal immigration is restricted, it impacts us and the broader agricultural sector, especially since American agriculture relies on exports.
Ryssdal: You’re the fourth generation to run this farm, right?
Smith: That’s correct.
Ryssdal: Your family has expanded the business into new ventures, like a brewery. How are your kids doing?
Smith: I have three kids, aged 14, 8, and 4.
Ryssdal: I bet your oldest is starting to think about their future. Do you see them taking over the farm one day?
Smith: I hope so. If we manage things well, the farm will be a viable option for them. We need to pursue immigration and trade policies that support farmers and benefit the country.
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Agriculture,farming,Immigration,migrant labor,visas