International Fresh Produce Association Reports: Labor Costs Spell Potential Dip in U.S. Food Business; Cathy Burns Comments
WASHINGTON, DC - Two new reports diving into the impact of the agricultural labor crisis were released by the International Fresh Produce Association (IFPA). With reports conducted by Texas A&M University, the Center for North American Studies, and leading agricultural experts, the organization is urging Congress to act quickly to avoid jeopardizing food security and national security.
“Out-of-control labor costs threaten to upend our food supply chain and push America’s fresh produce industry into crisis,” said IFPA Chief Executive Officer Cathy Burns. “These reports underscore the urgent need for congressional action to provide relief to growers and reform current regulations that expose employers to liabilities outside of their direct control and allow workers to receive wages for work they have not done.”
As a press release explained, a decreased domestic labor pool, increased reliance on the H-2A Visa program, and the program’s flawed wage calculation have dramatically impacted the cost and availability of labor, pricing U.S. growers out of the market. IFPA also noted that farm wages have grown more than 20 percent due to increases in the Adverse Effect Wage Rate (AEWR), the minimum hourly wage the Department of Labor requires employers to pay H-2A workers, which often does not match local market conditions.
Key findings from the studies include:
- The average farmer is unable to access 21 percent of their necessary workforce
- Reliance on the H-2A Visa program has surged by 300 percent since 2012, representing 10–15 percent of all agricultural labor jobs
- Jobs certified by the H-2A Visa program represent 10–15 percent of all agricultural jobs today
- Since 2020, a larger share of the total supply of fresh fruit in the U.S. was imported than grown domestically:
- In 2000, 37 percent of fruits were imported, up to 55 percent in 2022
- In 2022, fruit imports were 29 percent of the total supply, up from 9.5 percent in 2000
The House of Representatives and Senate are considering several pieces of legislation that would address various issues with the H-2A program. Included in these considerations are provisions that would maintain the current AEWR for the H-2A program, prevent the implementation of the recent May 2024 DOL rule, and reconsider a February 2023 DOL rule. Policymakers and the fresh produce and floral industries will gather next week for IFPA’s annual Washington Conference to address and discuss the most pressing public policy matters, including the agricultural labor and workforce crisis.
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