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Farm labor shortages drive higher food prices, Michigan State research finds

New research from Michigan State University connects farm worker wages to rising food costs and the loss of agricultural production.

Farm labor economist Zack Rutledge says a 10 percent decline in farm employment leads to a nearly three percent uptick in food prices.

“And we have a specialty crop sector that’s worth about $115 billion per year,” he says. “What that translates to is an additional $3.4 billion in food prices.”

During a call with reporters on Wednesday hosted by the farmer-led advocacy group Grow It Here, Rutledge expanded on factors limiting the farm workforce.

“We don’t have as many workers coming across the border to work on American farms,” he points out. “We also have an aging workforce that’s not being replenished by young immigrants the way it once was, and then there are better job opportunities in non-farm sectors of the U.S.”

North Carolina apple grower Linda Pryor tells Brownfield stronger immigration enforcement efforts made legal workers more apprehensive about helping harvest this season.

“There were several different crews that ran short on different days, different times, just because of those concerns,” she shares.

Rutledge says he’s hearing unanimous support from farmers for the Department of Labor’s interim rule that reformulates how H-2A guest worker wages are determined, but its pending lawsuit leaves a lot of uncertainty.