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Farm Labor Markets in the United States and Mexico Pose Challenges for U.S. Agriculture

Author

Listed:
  • Zahniser, Steven
  • Taylor, J. Edward
  • Hertz, Thomas
  • Charlton, Diane

Abstract

The U.S. farm labor market shows many signs of tightening, including producer reports of labor shortages, increases in farm wages, more employment of guest workers through the H-2A Temporary Agricultural Program, and a shrinking supply of farm labor from rural Mexico—the source of most foreign-born farm workers in the United States. Mexico’s farm labor market has also faced labor constraints over the past several decades. Although Mexican agricultural output continues to grow, rural Mexicans are less likely to work as farm workers either in Mexico or in the United States, as the Mexican economy transitions toward more focus on the service sector. This report reviews evidence showing that rising educational levels and increased nonfarm employment in Mexico are among the leading drivers of farm labor supply changes in that country. Several options by which U.S. agricultural employers could respond to a tighter labor market are explored, including raising wages, further mechanization, greater employment of guest workers, and switching to less labor-intensive crops.

Suggested Citation

  • Zahniser, Steven & Taylor, J. Edward & Hertz, Thomas & Charlton, Diane, 2018. "Farm Labor Markets in the United States and Mexico Pose Challenges for U.S. Agriculture," Economic Information Bulletin 281161, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:281161
    DOI: 10.22004/ag.econ.281161
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    Cited by:

    1. Castillo, Marcelo & Simnitt, Skyler & Astill, Gregory & Minor, Travis, 2021. "Examining the Growth in Seasonal Agricultural H-2A Labor," Economic Information Bulletin 327365, United States Department of Agriculture, Economic Research Service.
    2. Zachariah Rutledge & Pierre Mérel, 2023. "Farm labor supply and fruit and vegetable production," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 644-673, March.
    3. Jeff Luckstead & Rodolfo M. Nayga & Heather A. Snell, 2023. "US domestic workers' willingness to accept agricultural field jobs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1693-1715, September.
    4. Calvin, Linda & Martin, Philip & Simnitt, Skyler, 2022. "Adjusting to Higher Labor Costs in Selected U.S. Fresh Fruit and Vegetable Industries," USDA Miscellaneous 323872, United States Department of Agriculture.
    5. Diane Charlton & Genti Kostandini, 2021. "Can Technology Compensate for a Labor Shortage? Effects of 287(g) Immigration Policies on the U.S. Dairy Industry," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 70-89, January.
    6. Arteaga, Julian & Shenoy, Ashish, 2022. "Mexican migration flows and agricultural labor markets in the U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322311, Agricultural and Applied Economics Association.
    7. Sophie Kelmenson, 2023. "Between the farm and the fork: job quality in sustainable food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(1), pages 317-358, March.
    8. Ray, Srabashi & Hertel, Thomas, 2022. "Assessing The Impact Of Conservation Policies On Rural Communities: The Role Of Labor Markets," Conference papers 333401, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Kuan-Ming Huang & Zhengfei Guan & AbdelMalek Hammami, 2022. "The U.S. Fresh Fruit and Vegetable Industry: An Overview of Production and Trade," Agriculture, MDPI, vol. 12(10), pages 1-20, October.
    10. An Li & Jeffrey J. Reimer, 2021. "The US Market for Agricultural Labor: Evidence from the National Agricultural Workers Survey," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1125-1139, September.
    11. Madhu Khanna & Shady S. Atallah & Saurajyoti Kar & Bijay Sharma & Linghui Wu & Chengzheng Yu & Girish Chowdhary & Chinmay Soman & Kaiyu Guan, 2022. "Digital transformation for a sustainable agriculture in the United States: Opportunities and challenges," Agricultural Economics, International Association of Agricultural Economists, vol. 53(6), pages 924-937, November.
    12. Castillo, Marcelo & Charlton, Diane, 2021. "Housing Booms and H-2A Agricultural Guest Worker Employment," 2021 Conference, August 17-31, 2021, Virtual 315322, International Association of Agricultural Economists.
    13. Diane Charlton & Marcelo Castillo, 2021. "Potential Impacts of a Pandemic on the US Farm Labor Market," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 39-57, March.
    14. Dimitrie Stoica & Angela-Eliza Micu & Maricica Stoica, 2022. "The Impact of Economic Drivers on Food Loss Management," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 753-761, September.
    15. Astill, Gregory & Perez, Agnes & Thornsbury, Suzanne, 2020. "Developing Automation and Mechanization for Specialty Crops: A Review of U.S. Department of Agriculture Programs: A Report to Congress," Administrative Publications 320792, United States Department of Agriculture, Economic Research Service.
    16. Rutledge, Zach, 2020. "No Farm Workers, No Food? Evidence from Specialty Crop Production," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304249, Agricultural and Applied Economics Association.
    17. Huang, Kuan-Ming & Guan, Zhengfei, 2022. "Increasing minimum wages and farmers’ hiring decisions," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322556, Agricultural and Applied Economics Association.
    18. Calvin, Linda & Martin, Philip & Simnitt, Skyler, 2022. "Adjusting to Higher Labor Costs in Selected U.S. Fresh Fruit and Vegetable Industries," Economic Information Bulletin 327354, United States Department of Agriculture, Economic Research Service.

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    Keywords

    Agricultural and Food Policy;

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