EAST LANSING, MICHIGAN — A new study from Michigan State University finds that ongoing labor shortages in U.S. agriculture are directly contributing to higher food prices, particularly for labor-intensive crops such as fruits and vegetables. The research concludes that a 10% decline in domestic farm employment corresponds with an average 3% increase in consumer prices for specialty crops.
Researchers analyzed farm labor markets using an equilibrium displacement model commonly applied in policy analysis. Lead researcher Zach Rutledge said the findings show that even moderate reductions in agricultural labor can translate into billions of dollars in added costs for consumers. Labor-intensive specialty crops generate roughly $115 billion in annual value, meaning current shortages could raise food prices by an estimated $3.4 billion nationwide.
Growers speaking during a webinar hosted by the advocacy group Grow it Here said labor shortages are being driven by declining immigrant labor availability and rising costs tied to the H-2A temporary agricultural visa program. According to survey data cited in the study, more than half of farmers reported labor shortages in 2021, with operations unable to hire roughly 21% of the workers needed for normal conditions.
Farmers from California to New Jersey described crops going unharvested, declining yields, and growing reliance on imports. Several also pointed to immigration enforcement policies under the Trump administration as contributing to worker fear and reduced mobility, compounding labor shortages and threatening the long-term stability of domestic food production.
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