A Michigan State University study finds that agricultural labor shortages significantly increase food prices for labor-intensive specialty crops. The research indicates that a 10% decline in domestic farm employment results in approximately a 3% increase in food prices. With specialty crops generating roughly $115 billion annually, this translates to nearly $3.4 billion in higher consumer costs.

Growers participating in the Grow It Here advocacy campaign stated that declining availability of immigrant labor and rising wages—particularly through the H-2A temporary visa program—are making it harder to produce food competitively.

More than half of farmers surveyed in 2021 reported labor shortages. There was an average shortfall of 21% in the number of needed workers.

Farmers emphasized that labor shortages may not immediately disrupt food supplies. Instead, it will weaken the long-term resilience of the U.S. food system by increasing reliance on imports. Examples included a New Jersey blueberry grower who lost an estimated 2.5 million pounds of fruit due to insufficient labor, as well as farmers who reported declining yields, lower quality and rising costs.

The study also noted a reduction in migration among immigrant workers and a decline in Mexican immigrant populations, which intensified shortages. While recent changes to H-2A wage rules may ease costs slightly, growers remain cautious and warn that policy adjustments alone may not be sufficient to restore U.S. competitiveness or stabilize farm labor.

Read more on the Michigan State University study here.