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Labor contractors in U.S. agriculture: Recent trends and H‐2A program usage

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  • Skyler Simnitt
  • Marcelo Castillo

Abstract

This paper analyzes 20 years of data on employment trends and characteristics of U.S. farm labor contractors (FLCs). FLCs are primarily concentrated in specific industries and regions, particularly in the fruit and vegetable sectors, and in California and the Southeast. We show that the proportion of crop labor positions filled by FLCs has steadily increased over the past two decades, especially in California. Additionally, FLCs have become significant employers of H‐2A workers, now accounting for over 40% of H‐2A jobs. Lastly, we show that H‐2A exclusion in some commonly used datasets can significantly affect estimates of FLC employment.

Suggested Citation

  • Skyler Simnitt & Marcelo Castillo, 2025. "Labor contractors in U.S. agriculture: Recent trends and H‐2A program usage," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 47(4), pages 1298-1322, September.
    • Handle: RePEc:wly:apecpp:v:47:y:2025:i:4:p:1298-1322
    DOI: 10.1002/aepp.13534
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    References listed on IDEAS

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    1. Calvin, Linda & Martin, Philip & Simnitt, Skyler, . "Supplement to Adjusting to Higher Labor Costs in Selected U.S. Fresh Fruit and Vegetable Industries: Case Studies," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2022(Administr).
    2. Fred Krissman, 1995. "Farm labor contractors: The processors of new immigrant labor from Mexico for Californian agribusiness," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 12(4), pages 18-46, September.
    3. Castillo, Marcelo & Martin, Philip & Rutledge, Zachariah, 2024. "Whither the H-2A Visa Program: Expansion and Concentration," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 39(01), January.
    4. MacDonald, James M. & Hoppe, Robert A. & Newton, Doris, 2018. "Three Decades of Consolidation in U.S. Agriculture," Economic Information Bulletin 276247, United States Department of Agriculture, Economic Research Service.
    5. Calvin, Linda & Martin, Philip & Simnitt, Skyler, "undated". "Adjusting to Higher Labor Costs in Selected U.S. Fresh Fruit and Vegetable Industries," USDA Miscellaneous 323872, United States Department of Agriculture.
    6. Calvin, Linda & Martin, Philip & Simnitt, Skyler, . "Adjusting to Higher Labor Costs in Selected U.S. Fresh Fruit and Vegetable Industries," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2022(Economic ).
    7. 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.
    8. Calvin, Linda & Martin, Philip & Simnitt, Skyler, 2022. "Supplement to Adjusting to Higher Labor Costs in Selected U.S. Fresh Fruit and Vegetable Industries: Case Studies," Administrative Publications 327333, United States Department of Agriculture, Economic Research Service.
    9. Anita Alves Pena, 2012. "Undocumented immigration and the business of farm labor contracting in the USA," American Journal of Business, Emerald Group Publishing Limited, vol. 27(1), pages 10-26, April.
    10. Calvin, Linda & Martin, Philip & Simnitt, Skyler, "undated". "Supplement to Adjusting to Higher Labor Costs in Selected U.S. Fresh Fruit and Vegetable Industries: Case Studies," USDA Miscellaneous 323871, United States Department of Agriculture.
    11. 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.
    12. Bampasidou, Maria & Salassi, Michael E., 2019. "Agricultural Labor Trends: Considerations for Farm Operators and Managers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2019.
    13. 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.
    14. J. Edward Taylor & Dawn Thilmany, 1993. "Worker Turnover, Farm Labor Contractors, and IRCA's Impact on the California Farm Labor Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 350-360.
    15. Castillo, Marcelo & Simnitt, Skyler & Astill, Gregory & Minor, Travis, "undated". "Examining the Growth in Seasonal Agricultural H-2A Labor," USDA Miscellaneous 313476, United States Department of Agriculture.
    16. Dawn D. Thilmany, 1996. "FLC Usage Among California Growers under IRCA: An Empirical Analysis of Farm Labor Market Risk Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 946-960.
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