Tag Archives: farm labor costs

Georgia Producers Tackle Labor Uncertainty at Annual Ag Forum

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Tifton, GA |

For Georgia farmers, securing a reliable workforce is vital to a successful harvest—especially when it comes to fresh produce and specialty crops. That’s why many of them gathered in Tifton for the annual Agricultural Labor Relations Forum, an event aimed at keeping producers up-to-date on the latest changes to the country’s guest worker programs.

Beth Oleson, Director of Education for the Georgia Fruit and Vegetable Growers Association, says the forum continues to build momentum and foster productive dialogue between growers and regulatory agencies.

“I feel like we actually have gained some momentum. We’ve gained some, some real positive strides with our regulatory agencies. They’re here, they come every year, and they’re actually excited to be here. They’re listening to us. Changes are happening because our growers, our packers, our shippers, our processors are present and they’re having conversations. That’s what this forum is all about,” said Oleson.

According to Will Bentley, President of the Georgia Agribusiness Council, the H-2A guest worker program is essential to Georgia agriculture—especially since the domestic labor force is no longer a viable option for many growers.

“Georgia farmers are, you know, a top user of H-2A labor, typically between number one and number two, state of using the program in the country. So, I mean, it’s obviously important to our industry, especially on the fresh produce side and specialty crops and dairy and green industry and other things like that. So, it’s extremely important to us.”

“Unfortunately, the domestic labor force has shrunk to the point where it’s not really a reliable source of labor for picking crops or working in the fields. It’s become harder, and finding that labor has been more of a challenge. So really, having a dependable labor force through the H-2A program is really what makes Georgia agriculture successful in our ability to be diverse in the crops that we grow here in the state that we just simply couldn’t do if we weren’t able to have a dependable labor force.”

However, that reliance on guest labor has brought added uncertainty—especially as changes to the Adverse Effect Wage Rate (AEWR) continue to strain farm budgets.

“Ten, twenty, thirty percent increases on your labor rate—especially when those decisions aren’t rolled out until kind of late winter when farmers are already making planting decisions, already making hiring decisions—and then they get an increase in their adverse wage rate that they’re required to pay. That’s been the biggest challenge is just offsetting that when farmers can’t just simply raise their prices,” Bentley explained. “We’re price takers. So, the commodity is kind of set on the market for what that’s going to go for a farmer. But then they get a huge increase on the labor side—not to mention the increases on inputs, whether it’s equipment or fertilizer or chemical. So, it’s just really been a challenge on the cost side for our farmers. And that’s really been the biggest obstacle for them being successful.”

Despite the challenges, organizers and attendees of the forum remain hopeful that continued education, conversation, and collaboration can help move the industry forward—ensuring that growers have the tools and labor they need to keep Georgia agriculture thriving.

By: John Holcomb

Labor Shortages & Rising Costs: Can the H-2A Program Save U.S. Farmers?

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Atlanta, GA |

Over the next few months some of Georgia’s signature fruits and vegetables like peaches, onions and blueberries, will all be ready to come out of the field. And in order to maximize both quality and quantity, it’s essential to have a reliable workforce.

“You have to have enough labor there on the busiest day to get them harvested, get them packed. This is timely work. It’s so timely to have harvest at the right days. So, we’re always very conscious. That’s our number one issue behind probably weather is labor availability,” says Robert Dickey, Chairman of the Georgia House Agriculture Committee.

That’s where the H2A program comes in, as it helps supplement a small number of domestic workers, while also complying with stronger immigration policies.

“If we’re going to continue to feed America with American grown crops, vegetables, and fruits, we got to have a labor force. Unfortunately, we don’t have a domestic force to do that. And that is why we have transitioned to this H2A program. You see other industries desperately wanting that, with our shortage of labor in this country. And so, this has been a good program for us. It has kept us all one hundred percent legal,” says Dickey.

Despite their workers being documented, many Georgia farmers are hoping there can still be some compromise on the recent immigration crackdown.

“I hope the administration can look at the history of some of our workers from whatever industry they’re in, in this state who have been here for many, many years and contributed to the economy and have families here, maybe even homes and things. Maybe give them some pathway to citizenship, some legal status so they can continue working and helping our industries,” says Dickey.

Labor shortages aren’t the only concern, as growers have seen wages increase exponentially over the past few years, which has opened the door for more foreign competition.

“So far, we haven’t had any real issues, a few little hiccups but, that program has worked well. I hope it’s no changes to it other than trying to get some costs back in line. Those costs for us have gone up over thirty or forty percent in the last two or three years and just raising our grower cost to not be competitive with foreign imports. So, that’s one of our big concerns,” says Dickey.

And it’s a concern that will likely continue into the future, unless some changes are made to the program.

“We don’t have that labor and don’t have it at a competitive rate, it’s just going to make foreign imports from Mexico, Chile, and South America much more available to domestic grocery stores. There’s going to be less costs and our industry will just really go away if we don’t do something to stem it,” says Dickey.

By: Damon Jones