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Study Links Ag Labor Shortages to Rising Food Prices in Utah

A study reveals that declining farm employment increases food prices, affecting specialty crop growers in Utah.

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A recent study from Michigan State University reveals that a 10% decline in domestic farm employment results in approximately a 3% increase in food prices for labor-intensive crops. This finding is significant for specialty crop growers, who have expressed concerns over the impact of declining immigrant labor and rising wages associated with temporary visa programs on their production capabilities. In a recent webinar, the advocacy campaign 'Grow it Here' highlighted how these factors hinder their competitiveness against foreign producers. Lisa Tate, a producer of citrus and avocados in Southern California, emphasized that while labor shortages may not lead to immediate food shortages, they can weaken the overall resilience of the food system. The long-term effects could increase reliance on foreign imports and threaten the foundation of America's food supply. According to a survey conducted in 2021, over half of farmers reported experiencing labor shortages, with an average inability to hire 21% of the workers needed for normal operations. The study utilized an equilibrium displacement model to correlate domestic farm labor markets with agricultural output markets, indicating that moderate reductions in farm employment could raise consumer food costs significantly. Labor-intensive specialty crops generate approximately $115 billion in product value annually, meaning a 2.94% increase could lead to an additional $3.4 billion in food price increases. The study also noted a decline in the Mexican immigrant population in the U.S., which has traditionally supplied a majority of foreign-born agricultural workers. This trend, coupled with a tendency for workers to settle in one area rather than migrating to where labor is needed, has exacerbated labor shortages. Farmers across the nation, including blueberry farmer Brandon Raso from New Jersey, reported severe difficulties in harvesting crops due to insufficient labor. Raso indicated that he required 600-700 workers for his blueberry harvest but could only hire around 200, leading to significant crop loss. Moreover, costs associated with the H-2A visa program have risen, with national hourly wages for H-2A employees increasing from over $11 in 2011 to more than $18 in 2025. While recent modifications to wage determination methodologies may help reduce costs, long-term competitiveness against foreign labor remains a concern for U.S. farmers.