Agriculture Labour Shortages and How They May Affect Your Farm

Can you believe it? Agriculture employs more people than any other sector on Earth! As of 2022, around one in four workers globally—or about one billion people, according to ILO—were involved in agricultural activities. That’s 26.36% of the global workforce! And here’s another jaw-dropper: the average U.S. farmer is 58.1 years old,according to the 2022 Census of Agriculture.

Another challenge that agriculture faces is that finding and affording labor is becoming harder than ever. Hiring seasonal workers, training them, and keeping them on the job has always been a juggling act, but rising labor costs, stricter regulations, and time-intensive hiring processes are pushing farmers to the edge.

For small and large farms alike, labor is one of the biggest expenses—and it’s only climbing. With fewer younger people stepping into farming and fewer workers willing to take on physically demanding agricultural jobs, the labor pool is shrinking, and wages are skyrocketing. These trends are creating a perfect storm for a labor crisis in agriculture.

In this blog, we’ll dig deeper into the causes of this labor shortage and explore how farmers can tackle the challenge head-on.

👴The Impact of Aging Farmers

The farmers aren’t getting any younger—but they’re still going strong!

Farming is powered by millions of hands—but a lot of those hands are growing older. The aging population of farmers poses significant risks to the sector, particularly concerning labor force participation and productivity. As the average age of farmers continues to rise, there is a corresponding decline in the number of younger individuals entering the industry, leading to a shrinking labor pool. For the past few generations it seems, young folks haven’t considered farming a viable option.

This decrease in labor force participation can hinder agricultural output, as older farmers may face physical limitations with demanding tasks and may require more time or resources to integrate new technologies into their practices. Consequently, as experienced farmers retire without adequate replacements, the sector faces challenges in maintaining production levels and adapting to modern agricultural practices, which are essential for ensuring food security and sustainability in the future

💸 Wages of Hired Farmworkers

Turns out, money doesn’t grow on trees—but it sure costs a lot to pick the fruit off them!

Real wages for nonsupervisory farmworkers—those doing the hands-on work with crops and livestock—have been steadily climbing over the decades. Between 1990 and 2023, wages rose at an average annual rate of 1.1%. But here’s the twist: over the past five years, that growth has accelerated to 2.1% annually, reflecting how much harder it’s become for growers to find workers.

Despite this progress, farm wages still lag behind the rest of the economy. Back in 1990, farmworkers earned just over half of what nonfarm workers made in similar roles ($11.71 versus $23.19, adjusted to 2023 dollars). Fast forward to today, and while the gap is shrinking, it’s still substantial—farmworkers now earn $17.55 on average, or 61% of the average nonfarm wage ($28.93).

The breakdown by roles shows how wages vary across tasks:

  • Packers and packagers: $16.36/hour
  • Equipment operators: $18.47/hour
  • Supervisors: $25.61/hour, up 6.4% from last year!
  • Agricultural managers lead the pack at $28.79/hour, with a 4.4% jump from 2022.

Even with these increases, the tight labor market is driving wages higher—a reflection of the challenges farmers face as they compete with nonfarm sectors to attract talent. Labor shortages are making every hour in the field costlier, and that’s reshaping the economics of farming as we know it.

🤝H-2A Temporary Agricultural Program: Costs Add Up for Farmers

Who knew hiring help could make your farm feel like you’re running a luxury hotel?

The [H-2A visa program](https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-2a-temporary-agricultural-workers#:~:text=The H-2A program allows U.S. employers or U.S.,the United States to fill temporary agricultural jobs.) provides a way for U.S. farmers to hire foreign workers for seasonal agricultural jobs, addressing labor shortages when domestic recruitment falls short. While the program is a lifeline for many, it comes with significant costs that farmers must bear, including:

  • Higher wages: Farmers are required to pay the Adverse Effect Wage Rate (AEWR), which is based on regional farmworker wage averages. For fiscal year 2024, this ranged from $14.53/hour in states like Arkansas to as high as $20.72/hour in Washington, D.C.
  • Housing and transportation: Employers must provide free housing for workers and pay for their domestic and international travel, adding substantial expenses.

According to the 2024 Fruit Growers Labor Survey, nearly 44% of respondents identified affordability as their biggest challenge with the H-2A program. Farmers expressed concerns over escalating program expenses, including wages and recruitment costs:

  • One grower shared that the new legal process and wage increases forced them to outsource their labor recruitment entirely, leading to smaller workforces and costly overtime expenses. “The new wages and legal process have significantly cut into my bottom line and margins,” they stated.
  • Another grower noted, “The increasing costs of the program and wages put some growers at a competitive disadvantage. If you can raise prices, you might survive, but for price-takers, it’s nearly impossible.”

The Adverse Effect Wage Rate (AEWR) is a particular source of concern. Many farmers are finding it unaffordable, with some stating that they’ve been forced to reduce production of hand-harvested crops as a result. One farmer said bluntly: “New wage is too high… If more farmers go under, where will our SAFE food come from?”

For 21% of growers, these rising costs are directly cutting into profitability and threatening the sustainability of their farms. Several respondents raised questions about why pay rates keep increasing when they’re based on a domestic workforce that many believe is unrealistic for the current labor market.

🤖Automation: The Future of Farming Battling Labor Shortages

If robots can pick fruit, maybe they can pick up a farmer’s coffee, too—priorities, right?

Faced with rising labor costs and shrinking workforces, farmers are increasingly turning to automation to solve their challenges. From robotic harvesters to automated irrigation systems, technology offers a way to reduce reliance on manual labor while increasing efficiency and productivity. According to the 2024 Fruit Growers Labor Survey, 54% of farmers plan to invest in automation to combat labor shortages.

Automation, you said? Gadgets, you said? Scouting, you said? Talk No More!

scoutlabs the Inspector Gadget for every farm

Automation is the buzzword, and scouting is the game-changer. If you’ve been keeping up with the trends (or even just glancing at the charts), you’ll know that automation is already a growing reality for tackling labor shortages. But here’s the kicker: automation isn’t just about robotic harvesters or automated irrigation—it’s about precision farming, and yes, insect scouting, too! Imagine using technology not only to work smarter but also to protect your crops with data-driven insights. Sounds like the future, doesn’t it?

Our solution uses cutting-edge automation and technology to make insect scouting effortless and accurate. With scoutlabs, you can monitor your fields, detect pests early, and make proactive decisions—all without the guesswork. Our tools are designed to help farmers save time, and reduce costs. Whether you’re managing vast orchards or a vineyard, we’ve got you covered with tailored solutions for modern agriculture.

💬 Talk to us today! Let’s work together to bring the future of automated scouting to your farm.

Conclusion: The Labor Puzzle and a Way Forward

Agriculture is at a crossroads. Labor shortages, rising costs, and aging workforces are challenging farmers like never before. While programs like H-2A offer temporary relief, they come with significant financial burdens. Meanwhile, automation and innovative solutions like scoutlabs offer hope for a sustainable future.

The labor crisis isn’t going away, but with the right tools and strategies—like embracing technology and making smart operational choices—farmers can adapt, thrive, and continue to feed the world. The future of farming is bright, but it requires all of us to work smarter, not harder.

So, what's next?

Ready to start monitoring smarter?
Not ready to speak to us just yet?