Tree fruit growers in Washington state are exiting production as labour availability and costs continue to pressure farm viability, according to data from the United States Department of Agriculture Census of Agriculture. Between 2017 and 2022, Washington lost 3,700 farms, while the number of tree fruit farms producing a crop declined by 15 per cent. Grower representatives indicate the situation has continued to deteriorate since then.
The main drivers cited are labour shortages and rising labour costs linked to the federal H-2A seasonal worker programme. Washington agriculture is dominated by labour-intensive specialty crops such as apples, pears, and cherries. Since 2013, labour costs to grow and harvest one hectare of Washington apples have risen sharply, while returns have not followed the same trend. Over the same period, farm income per hectare increased marginally.
In 2013, labour accounted for an average of 37 per cent of grower revenue from fruit sales. By the 2023 season, labour costs had risen to 108 per cent of returns, meaning growers spent more on labour than they earned from fruit sales before accounting for other inputs such as fuel and fertiliser.
The number of H-2A workers employed in Washington more than doubled between 2017 and 2025, increasing from about 18,800 to more than 38,700. Agriculture employment in the state fluctuates seasonally, ranging from about 65,000 workers in winter to nearly 145,000 at peak harvest. Traditional domestic labour sources have declined as workers retire and fewer U.S. workers enter agricultural employment.
The H-2A programme requires growers to recruit domestic workers first and to pay the Adverse Effect Wage Rate. In 2025, the AEWR was set at US$19.82 per hour, about 19 per cent higher than Washington's minimum wage. Growers must also provide housing and transport to H-2A workers and offer the same terms to eligible domestic workers. In 2024, non-payroll labour costs for Washington apple growers averaged about US$1,312 per hectare, up nearly 500 per cent from 2013.
Despite these requirements, domestic participation remains limited. In fiscal year 2025, 32 domestic workers applied for approximately 38,700 available H-2A positions.
In October, the U.S. Department of Labor introduced an Interim Final Rule adjusting the AEWR calculation. The revised methodology replaces a USDA survey with Bureau of Labor Statistics data and introduces skill-based wage differentiation. It also adjusts H-2A wages to reflect housing costs paid by domestic workers, based on fair market rents.
Growers say the rule addresses part of the cost imbalance but stress that broader legislative reforms are still pending. Industry representatives warn that without further changes, the sector may see continued exits from tree fruit production, increasing reliance on imports from regions with lower labour standards.
Source: The Seattle Times
