U.S. farmers are responding to tighter labor markets by raising wages, recruiting seasonal workers through H-2A, investing in labor-saving equipment, and sometimes changing what they grow. No single approach fits every operation: crop, task, season, program eligibility, costs, and working conditions all shape the choice.
What the labor numbers show—and what they don’t
USDA’s Economic Research Service (ERS) points to increased H-2A use, rising farm wages, and reports of difficulty finding workers in labor-intensive industries as signs of tightening labor markets. That does not mean every farm or region faces the same shortage. Nor does it mean the nationwide farm workforce is shrinking.
In the week of April 6–12, 2025, farm operators directly hired an estimated 637,000 workers, 3% more than in the comparable April 2024 week. Their average gross wage was $19.52 an hour, also up 3%. These are estimates for one reference week, not an annual worker count; NASS direct-hire estimates exclude contract labor. USDA NASS’s May 21, 2025 Farm Labor report also counted 512,000 directly hired workers in the January 2025 reference week, at an average gross wage of $19.80 an hour. The two weeks should not be added together.
Longer-run figures show both wage growth and a persistent pay gap. In 2024, the inflation-adjusted average hourly wage for nonsupervisory farm workers was $18.12, compared with $30.13 for nonfarm workers—about 60% as much. ERS reports real farm wages increased at an average annual rate of 1.2% from 1990 through 2024, and 1.9% a year during the final decade of that period. Those figures are not the same measure as the nominal wages reported for the 2025 reference week. ERS’s real-wage series provides the longer comparison.
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A separate employment measure also cautions against equating shortage with a falling headcount. ERS analysis of Bureau of Labor Statistics records found agricultural wage-and-salary employment grew from 1.07 million in 2010 to 1.18 million in 2024, a 10% increase. That measure includes support businesses such as farm labor contractors, relies on unemployment-insurance records, and misses some small employers in states that exempt them. It is not a count of unfilled farm jobs. ERS’s Farm Labor overview explains the broader labor-market context.
How farmers are responding
1. Raising wages
Higher pay is one response to competition for workers, and both the recent nominal estimates and the longer inflation-adjusted series show wages rising. But the sizable farm/nonfarm wage gap remains, so an increase does not by itself establish that every job is competitive or that recruitment problems are solved. Wages are one part of a broader hiring decision that also includes job conditions and the timing and location of work.
2. Recruiting seasonal workers through H-2A
H-2A allows eligible agricultural employers to bring foreign-born workers to the United States for temporary agricultural jobs, generally for a season of up to 10 months. Employers must obtain Department of Labor certification after demonstrating unsuccessful efforts to recruit U.S. workers. They must meet applicable wage requirements, provide housing, and pay domestic and international transportation. For field and livestock non-range jobs, ERS describes the wage floor as the highest applicable standard among state or federal minimum wage, prevailing wage, and the Adverse Effect Wage Rate—not one universal national rate. Requirements and rates can change, so employers should confirm current rules with the Department of Labor.
H-2A is a substantial but carefully defined measure of seasonal hiring. ERS reports about 385,000 positions were certified in fiscal year 2024, compared with just over 48,000 in FY 2005. Certified positions are not the same as workers or visas: some certified jobs are not filled, and one worker may fill more than one certified job. About 315,500 visas were issued in FY 2024. Certified positions averaged 5.75 months, equivalent to roughly 184,000 full-year positions. These figures describe different stages and units; 385,000 should not be presented as the number of unique H-2A workers. ERS’s Farm Labor overview provides the program figures and context.
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The program is most relevant to eligible employers with temporary or seasonal needs, especially crop growers. It generally does not provide a route for most livestock producers seeking year-round labor. Recruitment, compliance, housing, transportation, and the temporary nature of the job also make H-2A a poor fit for some operations.
3. Mechanizing tasks where the crop and work allow it
Labor-saving machinery can reduce the number of workers needed for particular operations, but mechanization is not a universal substitute for hand labor. The task, crop, growing system, timing, and equipment investment all matter. USDA ERS examines mechanization as one longer-term adjustment in selected fresh fruit and vegetable industries; it does not establish a single return on investment or claim that every crop task can be automated. ERS’s analysis of adjustments in selected U.S. fresh fruit and vegetable industries describes this option alongside other responses.
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4. Changing production decisions
Another adjustment identified by ERS is reducing domestic production. That is a business and production tradeoff, not a way to eliminate labor pressure without consequences: less output from a farm or industry can change what is produced domestically and what may need to be sourced elsewhere. The cited analysis does not quantify consumer effects or how many farms adopt this response.
5. Improving recruitment and job quality
Pay is not the only workforce issue. USDA’s Farm Labor Stabilization and Protection Pilot Program connects workforce needs with safer and healthier working environments, and its materials address worker rights, responsible recruitment, benefits, working conditions, and partnership commitments. It is distinct from H-2A certification; participation should not be treated as a guarantee of certification. Check the current USDA program page for eligibility and whether funding is available. USDA’s pilot program page and its FAQ describe the initiative.
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Why the best response differs from farm to farm
Labor pressure is especially consequential where production depends on many workers for time-sensitive tasks. ERS’s analysis of 1997–2022 Census of Agriculture data identifies fruit and tree nuts, nursery, greenhouse and floriculture, and other sectors as particularly labor-intensive. Labor expense is not itself a count of vacancies, but it helps explain why the same hiring pressure can affect industries differently. ERS’s Census-based analysis of farm labor expenses documents those differences.
A practical way to compare responses is to start with the operation’s specific need, rather than assume one is universally cheapest or most effective:
- Season and eligibility: Is the need temporary and seasonal, and can the employer meet H-2A requirements, or is it year-round?
- Crop and task: Which jobs require hand work, and which can be mechanized without compromising the operation?
- Costs: What are the upfront and ongoing costs of equipment, wages, recruitment, housing, transportation, and compliance?
- Production impact: Would reducing output or changing the crop mix be viable, and what would that mean for domestic production?
- Recruitment and retention: Are pay, working conditions, benefits, and responsible recruitment practices sufficient to attract and retain workers?
USDA’s materials identify these as relevant considerations but do not provide a common cost-benefit ranking of wage increases, H-2A, mechanization, production changes, or job-quality initiatives. The right mix depends on the crop, task, season, and employer.
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