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Innovations for a shrinking agricultural workforce

Published by: Agricultural & Applied Economics Association

Authored by: Charlton, Diane; Taylor, Edward; Vougioukas, Stavros; Rutledge, Zachariah

Publication Date: January 1, 2019

Recent studies provide evidence that the farm labor supply in the United States is becoming less elastic. Charlton and Taylor (2016) find that rural Mexico, the primary source of U.S. farm workers, is transitioning out of farm work, just as the United States did in the mid-twentieth century and as economies around the globe typically do as they develop. Fan et al. (2015) show that the U.S. agricultural workforce became less migratory in the 1990s, limiting farmers’ ability to adjust to short-term shocks by drawing workers from other regions. Richards (2018) finds evidence of persistent labor shortages for harvest workers in California, given a marginal value product of labor insufficient to support higher wages that might attract additional workers. Hertz and Zahniser (2013) document that local farm labor shortages were pervasive throughout the United States in 2011. As the labor supply to U.S. farms continues to contract, farmers will have to invest in labor-saving technologies if they wish to remain competitive in a global economy. Evidence from previous mechanization events in agriculture indicates that innovation and adoption of labor-saving agricultural technologies is a long process. The cultivation and harvest of the most delicate farm products, like fresh fruits and vegetables, are difficult to mechanize. Successful innovation will require substantial up-front investments in interdisciplinary research combining horticultural and engineering expertise. Farms should anticipate making increased investments in labor-saving technologies, which typically require large up-front costs but can pay off in the long run through reduced labor costs and less dependence on seasonal labor. At the same time, they will need to invest in human capital, learning to work with new technologies and manage a “teched-up” farm workforce. In this article, we examine a producer’s decision to adopt a labor-saving technology with potentially high up-front adoption costs and document the expected labor savings associated with several innovations, many of which are not yet in commercial use. Most successful innovations are feasible only with advancements in cultivars, mechanical engineering, and information and technology (IT), highlighting the need for interdisciplinary coordination. Adopting labor-saving technologies can require changing plant varieties, orchard and vineyard layouts, cultivation practices, and machinery, entailing significant start-up costs. New on-farm investments can be high in terms of both financial outlays and learning, but they are increasingly profitable in the face of rising wages and labor shortages. As agricultural technologies become more IT-intensive, investments in infrastructure (e.g., bringing the Internet to the field) and education (preparing the farm workforce of the future) and research and development (R&D) will require a greater role for state and local governments and public–private partnerships to solve the farm labor problem.


Research Detail
Innovations for a shrinking agricultural workforce
Published by: Agricultural & Applied Economics Association
Authored by: Charlton, Diane; Taylor, Edward; Vougioukas, Stavros; Rutledge, Zachariah
Journal Name: CHOICES
Publication Date: Jan 1st, 2019