Five Facts About the Ag Labor Shortage

Farm labor continues to be an issue, as trends like a generational shift translated into different job expectations and more global competition. Consider these five issues affecting your ability to find qualified workers: 

1. Labor shortages are hitting ag hard
Concerns about labor shortages in the U.S. continue to grow in 2021. The June Ag Barometer from Purdue University found nearly two-thirds (66%) of respondents said they either had “some” or “a lot of difficulty” hiring adequate labor, compared to 30% in 2020. Farm Journal reported on the shortage, showing restaurants and food retail, lumber and rural non-farm employment are also affected.

 
2. But farm labor was a struggle before COVID-19 
Two years ago, Farm Journal’s 2019 Ag Labor Study found both employers and employees were struggling. From the employer perspective, trends like a generational shift translated into different job expectations and more global competition, and the skills required were evolving due to automation and technology updates. From the employee perspective, no paid time off or health insurance was the norm. Even so, the study also found that dairy producers in particular were paying more than they ever had before.
 

3. Farm workers have many options
According to Farm Journal’s 2021 Ag Labor Survey, 59% of row crop and ag retailer respondents say looking for a job is either easier or the same as before. For respondents who said finding a job was easier, the top reasons were more jobs and less competition. For those who said their ability to find a job was about the same, they reported no real changes to the job market compared to previous years. For those who have struggled, the biggest reason was employers who had higher requirements.

4. Meanwhile, farmers and ag retailers are feeling the same pinch
The 2021 Farm Journal Labor Survey found most farm employers (87%) and ag retailers (91%) are finding it harder to fill positions. Many believed unemployment benefits were enough to keep applicants away. Others felt that it’s now harder to compete with other industries offering better pay, hours and benefits, especially if those jobs aren’t in rural areas. Some farmers are now considering hiring H-2A workers for the first time, while retailers continue to struggle to find qualified candidates.
 

5. It’s not just fewer available workers. New would-be employers are looking to compete
According to the 2021 Farm Journal Labor Survey, 44% of farmers who don’t currently employ workers are looking to hire in the next three years. They are entering the hiring market at a time when farmer videos go viral on TikTok as they point out crops on the verge of going to waste and face hardships to get H-2A workers across the border. Wages are on the rise, and Purdue University’s Jayson Lusk says lower-level employees are quitting to make just as much not working. Meanwhile, commodity prices are volatile but remain high. The one silver lining is that some economists expect inflation to ease off historic highs later this year.