December 18, 2023. An opinion piece penned by MAAB Executive Director Jamie Clover Adams that appeared in the Detroit News highlighted the real threat to Michigan’s fruit and vegetable sector if policymakers do not address the escalating labor costs faced by growers. She pointed out that farmers have been forced to use the H-2A program to maintain their farms and provide consumers with locally grown produce and that the wage rate will move to $18.50 per hour next year. The all-in cost for farmers who also have to pay for housing and transportation will be over $30 per hour.
She went on to put this into perspective – under the new UAW contract, Stellantis production workers will move from $18.04 an hour to $30.21 an hour over the term of the contract. At the rate the U.S. Department of Labor is going, farmers will spend more on laborers than Stellantis at the end of their contract, if they are still in business. The difference is that car companies can increase the price of a vehicle; farmers are price takers and get the price retailers decide to give them, which to date hasn’t kept up with escalating labor costs.
A further twist is the fierce competition farmers face from fruit and vegetable imports from low-wage countries. The cheaper imports effectively set the ceiling for what retailers are willing to pay for locally grown produce. Farmers are getting squeezed from both ends. She ended the piece encouraging consumers to enjoy local Michigan grown fruits and vegetables this coming year because chances are there will be fewer and fewer of them in the years to come.
See the entire piece by visiting the Detroit News.