By Andi Anderson
Michigan State University agricultural economist Zach Rutledge has received a $650,000 grant from the USDA’s National Institute of Food and Agriculture to study challenges in the U.S. agricultural labor market.
The research will focus on workforce trends, visa programs like H-2A, and the impact of the Adverse Effect Wage Rate (AEWR) on domestic and H-2A workers.
The H-2A program enables U.S. employers to hire temporary agricultural workers from other countries. Rutledge’s work will evaluate how declines in U.S.-based workers have increased the reliance on H-2A workers and whether the program effectively addresses labor shortages.
Of particular interest is the AEWR, the minimum wage mandated for H-2A workers, which rose in Michigan to $18.50 in 2024 from $17.34 in 2023. Rutledge will analyze how these wage rates influence domestic farmworker pay and broader economic conditions.
The study also explores how declining U.S.-based agricultural labor may increase reliance on imported fruits and vegetables, potentially impacting national and economic security.
Rutledge is examining the role of healthcare coverage for agricultural workers. Preliminary findings suggest offering healthcare enhances productivity and boosts farm profitability, benefiting both employees and employers.
“Our research is neutral, aimed at providing data to estimate policy effects rather than advocating for specific policies,” Rutledge explained.
The project is set to run until 2028, with findings to be published in academic journals and shared through MSU Extension and industry summaries. This research aims to provide data-driven insights to support policy decisions and address the pressing challenges of the agricultural workforce.
Photo Credit:michigan-state-university-msu
Categories: Michigan, General