By Andi Anderson
Michigan’s farm labor market has experienced significant changes over the past two decades. While some agricultural sectors have reduced labor dependency through new management practices, others, such as fruit, vegetable, and dairy farming, still require large workforces due to limited automation options.
A Michigan State University study found that a 10% increase in farm wages could result in a 6.7% drop in farm employment and a 2.7% decrease in specialty crop production. Although higher wages improve labor income, they may also reduce overall agricultural output.
The farm workforce is shifting as Mexican immigration declines and traditional migrant workers age. Many U.S. farm laborers are immigrants, with about half lacking legal work authorization.
The reduction in young immigrant workers is increasing labor shortages, leading farmers to seek alternative solutions like farm labor contractors and the H-2A visa program.
The H-2A program allows temporary foreign agricultural workers into the U.S., but employers must meet strict requirements, including providing housing, transportation, and paying the Adverse Effect Wage Rate (AEWR).
Michigan’s H-2A workforce has grown, with over 15,000 jobs certified in 2023, yet rising labor costs threaten farm profitability.
Farm wages have increased as worker availability declines. Non-H-2A farm wages in Michigan’s Lake Region rose from $7.87 in 2000 to $14.08 in 2022, while AEWR wages for H-2A workers climbed to $18.15 in 2024.
With rising labor costs and competition from lower-cost agricultural imports, Michigan farmers face increasing challenges. Michigan State University Extension continues to support farmers in addressing labor issues and finding sustainable workforce solutions.
Photo Credit: gettyimages-fotokostic
Categories: Michigan, Rural Lifestyle