A Michigan State University analysis has found a strong correlation between farm labor costs and the volume of fresh produce imported into the United States. Agricultural labor specialist Zach Rutledge has studied data from the past three decades and says higher wages are statistically linked to increased imports of hand-harvested fruit and vegetables.
"When wages rise, we are seeing that statistically linked to the quantity of hand-harvested, fresh fruit and vegetables coming into the country," he said. Rutledge noted that the trend could further affect the long-term competitiveness of U.S. fruit and vegetable growers. "I expect that link to be present moving forward, at least for the foreseeable future," he said.
Since the 1990s, average farm wages have increased by more than 30 per cent, while import volumes of fresh fruit and vegetables have risen by 125 per cent. According to the data, a one-dollar rise in the average farm wage corresponds with an increase of nearly 450,000 metric tons of imported produce.
Models presented by Rutledge show that every 10 per cent increase in real wages results in a 5.5 per cent decline in domestic production, while import prices and quality both increase by about 3 per cent. He said future policy adjustments, such as revisions to how H-2A farmworker wages are calculated, could help stabilize conditions for both producers and consumers.
Rutledge shared his findings during the Michigan Farm Labor Conference held this week in Lansing.
Source: Brownfield
