ICYMI, it was a tumultuous year for labor in agriculture.
Let’s start at the very beginning… with a 65% increase in demand for H-2A workers over the last five years. It comes as no surprise the majority of U.S. food production (especially of fruits and vegetables) is dependent on migrant workers.
Crazy stats: Two-thirds of U.S. counties now have H-2A workers. The average age among crop laborers has increased from 37.2 to 41.6 years between 2006 and 2022, illustrating a decline in young labor in the ag industry.
Meanwhile, automation is on the rise. Not only can it help with labor shortages, but it also can help farmers manage costs and improve yields with better accuracy throughout the production process. But not everyone is on board.
Soundbite: “You build a relationship with the land, with the animals, with the place that you’re producing it. And we’re moving away from that.” — Frank James, Dakota Rural Action executive director
And it’s not all rainbows and butterflies for countries investing in agtech research and development, which can have a trickle-down impact on labor. The EU’s Green Deal and the U.K.’s Agriculture Act, as well as initiatives in Australia, Canada, the U.S., and more face high initial costs, inadequate infrastructure, and a lack of skilled technicians.
“You’re fired!” A fair share of ag giants laid off thousands of employees in 2024 due to lower profits. John Deere and AGCO watched sales plummet as farmers held onto older equipment and took out fewer loans. The companies cut production at their plants, as well as more salaried employees.
Earlier this month, Cargill announced it would cut 5% of its global workforce due to profit declines, while Tyson closed three meat plants.
Stay tuned: Things could get worse before they get better in 2025.