Labor Challenges Likely To Impact Apple Production

Apple trees are blooming and another crop season is well underway. Harvest will be here almost before we know it. Last year’s American apple crop was moderate in size, the 18th largest crop in 35 years with an estimated 221 million bushels of apples produced. The industry has also enjoyed good export demand and brisk fresh apple movement.

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As we move into what’s expected to be a larger harvest, questions loom over how labor unpredictability and possible shortages will impact apple production. The biggest challenge will be trying to plan for and adjust to the availability of workers, especially as crop needs change over the season and during harvest. The availability and cost of a predictable, consistent, and legal supply of labor continues to be a critical issue for the U.S. apple industry. Solving it is

USApple’s number one priority, working with a coalition of other labor-intensive crop advocates.
The past few years have brought an increased emphasis on border security and crackdowns on illegal immigrants. States and localities are increasingly adopting their own strict controls on undocumented workers. The result has been great uncertainty within the industry as to whether there will be sufficient labor to harvest the crop or to expand operations.

From pruning to picking, packing, and processing, labor accounts for 50% to 60% of the cost of producing apples in the U.S. The apple industry is heavily dependent on migrant labor and foreign guestworkers to harvest, pack, and process apples and apple products.

It’s no secret that the prohibitive costs and inefficiencies of the federal H-2A guest farm worker program have resulted in very low grower participation across agriculture. It is estimated that only 2% to 5% of agriculture currently utilizes the program. Wages for H-2A workers in some states have reached nearly $10 per hour — well above minimum wage — and growers face additional transportation and housing costs, too. Even after all of those costs have been paid, many growers report problems getting their workers on time as bottlenecks can occur during the application and clearance process.

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Recognizing that the H-2A program is cumbersome and not user-friendly, the Bush Administration has proposed operational changes. Any H-2A changes adopted will likely include some provisions supported by farm worker advocates as well as other measures urged by agricultural employers. USApple plans to submit regulatory comments.

Employer participation in the federal H-2B immigration program, designed for packers and processors, is extremely limited. The relatively low annual cap on the number of foreign guestworkers who can enter the U.S. under the program causes employer demand to far exceed the available supply of these workers. This too should be fixed.

Taking Action

Immigration continues to be a bitter and divisive issue boiling at national, state, and community levels. Legislation that offers undocumented workers the opportunity to earn their way to permanent legal status is touted as “amnesty,� and is vilified by opponents. This ignores the needs of U.S. growers and specifically the importance of producing healthy and nutritious American apples.

While it’s clear that federal labor reform is long overdue for our industry, USApple has been battling enforcement-only approaches to this very complicated issue while on Capitol Hill. A legislative solution providing sufficient farm workers is critical for the industry’s survival. The AgJOBS bill, negotiated and supported by farm workers and farm employers alike, came close to passing but failed as part of last year’s comprehensive immigration reform bill. Any comprehensive Congressional solution for agriculture now is likely to involve increased border security and enforcement of already existing laws.

An emergency relief package is necessary at least in the short term to provide agriculture the reliable and legal workers it must have. Sen. Dianne Feinstein (D-CA) is actively reaching out to the AgJOBS, H-2A, and H-2B communities (including USApple), as well as Democratic and Republican leaders to develop alternatives, which include the principles of AgJOBS put together in a way that may pass both houses.

Stay tuned. If Senator Feinstein can keep her growing fragile coalition intact, there may be a short-term fix on Congress’ plate which needs our strong and immediate support. There are no guarantees, but we must keep working towards a solution to this dire problem.

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