Farm Worker Shortage Leads to Higher Wages, Benefits

Tighter borders, fewer immigrants and a strengthening U.S. economy have created a work shortage on U.S. farms. In response, farm companies are wooing employees by raising wages faster than inflation and enhancing medical and other benefits, the Wall Street Journal reported this month.

The problem started years ago and was exacerbated this summer by a glitch that snarled processing for seasonal-worker visas and delayed the arrival in the U.S. of thousands of legal farm laborers, leading to millions of dollars of crop losses, the Journal reported. More broadly, growers say they are bearing the brunt of the federal government’s crackdown on illegal immigration, as they lack a suitable alternative workforce.

In response, companies are building housing, opening health clinics, and providing educational opportunities to attract farm workers.

Limoneira Co., the country’s largest lemon grower, has in the past five years begun paying for workers to learn English or earn vocational degrees. The company also boosted retirement benefits by 20% and built and rented out to employees 65 houses at below-market rates in California’s Ventura County. It also has raised wages 20% to $16 to $17 per hour for its 2,000 workers.

Nationwide, the average hourly wages for crop workers hired directly by farmers have climbed 5.3% to $11.33, adjusted for inflation, in the past four years, according to the USDA. That runs counter to the overall long-term trend for low-skilled work in U.S. retail and other industries, where there has been little real-wage growth, the Journal reported.

As labor costs rise, producers likely will become more eager to automate, which presents opportunity for shortliners.  S