MSU economist analyzes labor trends

By Andi Anderson

Michigan State University agricultural economist Zach Rutledge has received a $650,000 USDA grant to study labor trends affecting the U.S. food supply chain. The project, funded through 2028, will examine workforce challenges and provide impartial data to guide policy decisions.

Rutledge, an assistant professor in the Department of Agricultural, Food, and Resource Economics, focuses on the declining U.S.-based agricultural workforce.

As the domestic workforce ages and shrinks, farmers increasingly rely on technology and contract workers. The study will also explore the impact of the H-2A visa program, which allows U.S. employers to hire nonimmigrant workers temporarily.

The project investigates how workforce declines influence the H-2A program’s adoption and whether the program can effectively mitigate labor shortages. Rutledge will analyze the Adverse Effect Wage Rate (AEWR), the minimum wage for H-2A workers, and its influence on wages for domestic farmworkers.

Beyond workforce trends, the study assesses how declining U.S. agricultural workers may increase dependence on fruit and vegetable imports, potentially posing economic and national security risks.

Rutledge highlights healthcare as a mutual benefit for employers and employees, noting that access to healthcare services boosts worker productivity and farm profitability.

Tim Richards, Morrison Chair of Agribusiness at Arizona State University, will collaborate to study labor market competition and its effects on employee welfare in the grocery sector.

Rutledge emphasizes the importance of neutrality in the research, providing evidence to help policymakers understand potential outcomes of policy changes. The findings will be shared through academic journals, MSU Extension, and industry groups to inform and support the agricultural sector.

This comprehensive study aims to strengthen the resilience of the U.S. food supply chain by addressing workforce challenges and fostering sustainable agricultural practices.

Photo Credit: michigan-state-university-msu