Farming Double Whammy
Most Americans possess a limited understanding of how food gets to the store. It just shows up – fresh, affordable, and available for us to eat. Unfortunately, that dependability is being pushed to the brink. As someone who spends lots of time with Georgia farmers, I understand and share the extreme exasperation and frustration that exists in these communities.
Whammy #1: Cheap imports flooding the market. Most Atlantans are familiar with the DeKalb Farmers Market – a massive facility providing every kind of food you can imagine. While the oranges and tomatoes and blueberries are displayed on the tables, the boxes they came in lay on the floor. Product of Mexico, product of Guatemala, product of Chile… These same imports line the supermarket produce sections too! The reason for their lower cost is due to their cheap labor rates and production methods (illegal by USDA standards).
Whammy #2: Adverse Effect Wage Rate (AEWR). This is a fancy term for the minimum wage paid to H-2A migrant laborers – temporary workers certified by the Dept. of Labor that work the fields. Between 2017 and 2022, the number of H-2A laborers grew 65% (from 224,965 to 370,628) coupled with a correlating 27% increase in hourly rate ($12.20/hr. to $15.56/hr.). In 2024, the AEWR averages out to $17.55/hr. – another 13% and accelerating fast. This does NOT include the cost of travel, housing, healthcare, and Federal applications that are 100% borne by the farmer to get these needed laborers to their respective farms. When you add-in all these costs, the actual rate approaches $28/hr!
When downward pressure on prices meets accelerating production costs, you hit a brutal inflection point that is being borne by today’s farmers and the rural communities in which they live. Letting prices rise means more go hungry. Subsidizing farmers means more government spending. Higher tariffs on tomatoes and strawberries and onions means trade wars. Solely relying on cheap imports puts American farmers out of business. There is no simple answer here.
Next time you go shopping, keep this in mind when selecting the food you enjoy.
