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Labor Shortages and Farmer Adaptation Strategies

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  • Win, Myat Thida
  • Rutledge, Zachariah
  • Maredia, Mywish K.

Abstract

Labor shortages are a growing challenge for U.S. agricultural producers, but little is known about farmers' adaptation strategies. We estimate the statistical relationship between farm labor shortages and adaptation strategies among California farmers. We find that increasing wages is the most common response, followed by changes in cultivation practices, adoption of labor‐saving technologies, and use of farm labor contractors. Labor shortages are associated with an increase in the probability of raising wages by 21 percentage points and changing cultivation practices by 9 percentage points. These effects are more pronounced for labor‐intensive crop farmers, highlighting the need for targeted support strategies.
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Suggested Citation

  • Win, Myat Thida & Rutledge, Zachariah & Maredia, Mywish K., 2023. "Labor Shortages and Farmer Adaptation Strategies," 2023 Annual Meeting, July 23-25, Washington D.C. 335904, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea23:335904
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    1. Maoyong Fan & Susan Gabbard & Anita Alves Pena & Jeffrey M. Perloff, 2015. "Why Do Fewer Agricultural Workers Migrate Now?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 665-679.
    2. Stephen F. Hamilton & Timothy J. Richards & Aric P. Shafran & Kathryn N. Vasilaky, 2022. "Farm labor productivity and the impact of mechanization," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1435-1459, August.
    3. 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.
    4. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LLC, vol. 7(3), pages 281-312, September.
    5. Brady, Michael P. & Gallardo, R. Karina & Badruddozza, Syed & Jiang, Xiaojiao, 2016. "Regional Equilibrium Wage Rate for Hired Farm Workers in the Tree Fruit Industry," Western Economics Forum, Western Agricultural Economics Association, vol. 15(01), pages 1-12.
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