A summary of farm labor in Michigan – Farm Management
The composition of the farm labor workforce in Michigan has undergone significant transformations in the last two decades. While some agricultural sectors have implemented innovative management techniques that decrease their reliance on labor, others, particularly fruit and vegetable production and the dairy industry, still heavily depend on farm labor. The primary reason for this continued reliance on human labor is the absence of cost-effective technology for certain farm tasks or the prohibitively high costs associated with integrating robotic or mechanized equipment to replace human workers. Nevertheless, as farm profitability faces mounting pressures due to escalating wages for farm labor, labor shortages, and diminishing returns for agricultural products, the agricultural sector is confronted with the critical task of finding sustainable labor solutions to ensure the continued viability of farms nationwide.
A recent study conducted by Michigan State University has uncovered noteworthy insights into the impact of wage increases on farm employment and crop production in Michigan. According to the study, a mere 10% increase in farm wages within the state could lead to a substantial 6.7% reduction in farm employment and a 2.7% decline in specialty crop production. The study postulates that higher wages would drive regional incomes to surge by $78.2 million, predominantly due to amplified labor income. However, the study’s estimates indicate that total regional output would plummet by $51.1 million as agricultural producers scale back their production, reflecting a decrease in the value of economic transactions. While augmented wages might elevate overall labor income in the sector, they could also precipitate diminished employment rates and reduced output.
The farm labor landscape is experiencing a metamorphosis as the Mexican immigrant population dwindles and traditional migrant populations mature. Historically, the farm labor force in the United States has predominantly comprised immigrant workers from Mexico, with approximately half of them lacking legal authorization to work in the country. The Mexican immigrant population in the U.S. had steadily burgeoned over many years, surpassing 11 million in 2007. Nonetheless, there has been a recent reversal in this trend, with the Mexican immigrant population starting to recede for the first time in contemporary history. This decline has unleashed fresh labor supply pressures on industries reliant on immigrant workers.
Concurrently with the downturn in Mexican migration, evidence suggests that the reservoir of U.S.-based farm employees is shrinking, prompting producers to overhaul their production and labor management methodologies significantly. To counteract labor shortages, farmers are engaging farm labor contractors to transport workers to their farms and leveraging the H-2A visa program. Contributing factors to the decreasing farm labor supply encompass heightened educational achievements among rural Mexicans, augmented demand for immigrant workers from competing sectors within the U.S., and a decrease in migratory tendencies among U.S. farm workers.
Proponents of the H-2A program have contended that the program’s minimum wages, as stipulated by the Adverse Effect Wage Rates (AEWR), surpass local wage standards, creating a discordance with prevailing farm labor conditions. These proponents caution that inflated labor costs could drive domestic farm enterprises reliant on the H-2A visa program out of business as they are unable to offset these costs onto consumers. Moreover, competition from nations with lower labor expenses exacerbates the situation by exerting downwards pressure on farmgate prices. Despite an uptrend in the H-2A program’s proliferation in the Lake Region, its expansion has decelerated, indicating that mounting labor costs may be approaching a critical threshold. Notably, legislative measures have been proffered to redress some of these labor quandaries, but they have faltered in securing adequate bipartisan backing.
