Income Vs Farm Labor Expenses
From the Ag Information Network, I’m Bob Larson. It’s no secret that the cost of agricultural labor is a major expense for farmers, but it has exploded in recent years to a level that many cannot afford.
Kate Tynan, Vice President of the Northwest Horticultural Council, says getting the crops picked is flat-out unaffordable for many …
TYNAN … “We’ve done some research at the Northwest Horticultural Council, working with an accounting firm, and looking at actual data tracking labor costs and grower returns over the last decade. And what we found is, because of where we’re at right now, in the 2023 season growers spent 108% of the check they received upon the sale of their fruit on labor costs only. That was before any other orchard input costs were paid.”
Labor expenses, Tynan says have already forced some out of business …
TYNAN … “Fewer employers out there is not a benefit to workers by any stretch of the imagination. It’s also going to be harming and already is harming local rural communities in a way that has a negative impact on everyone.”
Tynan says the recent reforms should help get the cost of labor under control …
TYNAN … “So, I would say this is less of a bring down wages as realigning wages with the broader economy and what the economy can frankly support.”
2025 saw a slight improvement of 97% of money received going to labor, but that’s still unsustainable.
