Labor Shortages in Agriculture and Their Impact on Food Prices
A recent study from Michigan State University highlights a worrying trend: when domestic farm jobs drop by 10%, prices for food crops rise by approximately 3%. This increase may seem small, but it can lead to billions of dollars in extra costs for consumers.
The “Grow it Here” advocacy group recently shared insights during a webinar, discussing the struggle with labor shortages in the farming sector. Farmers, especially those producing specialty crops, are feeling the pinch. Wage hikes for temporary visa workers, coupled with a decrease in immigrant labor, are making it challenging for farmers to compete with international producers.
The Long-Term Effects of Labor Shortages
Experts warn that these labor shortages don’t just affect immediate harvests. Lisa Tate, a citrus and avocado grower from California, explains that ongoing labor shortages can weaken the entire food supply system over time. “It’s not just about getting through one season,” she states. “It’s about ensuring a stable food source for the future.”
In a survey, over half of the farmers reported labor shortages in 2021. On average, they were unable to hire around 21% of the workforce they needed. This shortage has a direct correlation with food prices. The Michigan State study suggests that moderate reductions in farm employment could inflate food costs by billions, with labor-intensive crops generating about $115 billion annually.
Real-Life Consequences for Farmers
Brandon Raso, a farmer in New Jersey, shares his experience: he needed around 600-700 workers for his blueberry fields but could only find 200. This resulted in around 2.5 million pounds of blueberries being left unharvested. Such losses are not just numbers; they represent real struggles for multi-generational farms struggling to stay afloat amid rising costs.
Batten, a North Carolina tobacco farmer, echoes Raso’s concerns, stating, “Without enough labor, the quality and yield of crops drop, leading to higher costs.” This situation is forcing many farmers to downsize or exit the industry altogether.
The Rise in Labor Costs
Recent data shows that the average wage for agricultural workers on the H-2A visa program has surged from just over $11 in 2011 to more than $18 in 2025. This increasing cost is concerning for growers competing against farmers in countries with cheaper labor. While new rules in 2025 aimed to make labor costs more manageable, many producers remain cautious about the long-term outcomes.
Tate emphasizes the importance of valuing agricultural workers. Immigration policies have created a tense environment, making it harder for workers to feel safe in their communities. “They shouldn’t have to fear for their safety when they are helping to feed us,” she remarks.
The Bottom Line
The challenges in hiring and labor costs are reshaping America’s agricultural landscape. As farmers face rising prices and labor shortages, consumers may feel the consequences when they shop for food. To stay competitive, it’s crucial that we address these labor issues, ensuring a resilient food supply for the future.
To learn more about agriculture and labor trends, you can visit Michigan State University’s study.
