July/August 2024 - 13

LABOR REPORT
" New wage is too high, " another grower responded.
" Labor is up, fertilizer's up, shipping is up, chemicals
are up, etc., food in the stores is up, but I'm still getting
the same amount for our veggies. If this keeps going
and more farmers go under and are no longer farming
where will our SAFE food come from? Something needs
to be done with the H-2A wage. "
Wage increases are pressing agricultural employers.
" Georgia is becoming increasingly reliant on the (H2A)
program especially in terms of fruit and vegetable
production, " said Chris Butts, vice president of Georgia
Fruit & Vegetable Growers Association. " Our industry is
faced with double-digit wage increases and regulatory
burdens are increasing. Economically, it is becoming
unviable to use H-2A, but unfortunately it is our only
option ... we are in a bad place right now. "
Impact on profitability: For 21% of respondents, the
new wage requirements were highlighted as negatively
affecting their profitability and sustainability.
" The Adverse Wage Rate is not affordable for us, " a
grower stated. " Our commodity prices are not increasing
at the rates to afford this wage. We are forced to raise
less hand-harvested crops. "
" Makes me wonder why! " another grower stated. " Why
do these pay rates keep increasing? Especially, since they
are basing these numbers off a workforce of U.S. workers
that does not exist. I would like to continue to grow my
business, but I will not be able to due to new added costs
on labor. "
Decreased use of H-2A: 16% mentioned using the H-2A
program less or considering discontinuing its use due to
the new wage requirements.
Regulatory burden: Approximately 14% of respondents
found the legal process and associated regulations
burdensome.
" Too complicated, we need our same people to return
every year, " a grower stated.
" We are not sure how much longer we will be able to
afford to participate in this program, " another grower
wrote. " It has become so expensive, the bottom line is
very thin. "
Impact on crop production: While a smaller percentage
(7%) mentioned reducing acreage or crops requiring
hand labor due to wage requirements, the impact on crop
production remains a concern.
" We are lowering the amount of acres we produce on
in order to cut costs, " a grower wrote. " If the costs are
not lowered, we are considering getting out of fruit all
together. That's a big decision as we are fifth generation
growers. It's a huge national food security problem that
needs to be addressed. "
Concerns about future viability: A notable 9%
expressed concerns about the future viability of their
farming operations if wage requirements continue
to rise.
" We have been removing crops that require hand labor
because prices for wages are no longer profitable, " a
grower stated.
Coping strategies
With labor shortages persisting, growers are exploring
various strategies to cope:
Automation: A quarter of respondents (26%) noted
that they are considering automation to mitigate labor
shortages, with harvesting (64%) and weed control
(53%) being the most common areas targeted.
Growing less: More than half (54%) are contemplating
growing fewer crops to manage labor constraints.
Other strategies: Diverse approaches include exploring
alternative labor sources, adjusting marketing
strategies and considering government programs
like the H-2A program.
" This year we have cut back our use of H-2A from over
100 to 25, " a grower responded. " We can not afford the
rising labor costs. "
Additional labor insights
Respondents provided additional insights into the labor
situation in agriculture, highlighting concerns such as:
Cost of labor: Increasing labor costs, especially through
programs like H-2A, are becoming unsustainable for
smaller farms, impacting profitability.
Regulatory burdens: Regulatory requirements
and overtime rules are increasing the burden
on farmers, with frustration over paperwork and
compliance.
Impact on farming operations: Labor shortages
and high costs directly affect operations, leading to
downsizing or even closures of farms.
H-2A concerns: While appreciated, the H-2A program's
rising costs and administrative burdens pose challenges
for growers.
Government policy and support: There's frustration
with government policies perceived as detrimental to the
industry's viability and food supply.
" Trade and labor are two overarching issues now and
everything else plays second seat to that, " Butts said.
The findings of the labor survey underscore the
persistent challenges faced by fruit and vegetable
growers regarding labor shortages and rising costs.
While automation and other strategies offer potential
solutions, there's a clear call for policy reforms and
support to ensure the long-term sustainability of
farming operations.
VEGETABLEGROWERSNEWS.COM | 13
http://www.VEGETABLEGROWERSNEWS.COM
July/August 2024

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