In Michigan, despite a bumper crop year, several farms are experiencing operational setbacks or closures due to escalating labor costs. Local growers attribute this trend to the increasing expenses associated with harvesting fruits and vegetables, which are consuming a larger portion of their income.
At Hart Farm in northern Kent County, owner Chris Kropf acknowledges the quality of the current crop but highlights the challenge of turning a profit amidst rising labor costs. The primary concern for many in the sector, including Kropf, is the federal wage policies that are perceived to jeopardize the viability of their operations.
Michigan's Protect Our Produce coalition is actively seeking to raise awareness about these federal wage policies. At a recent round table with Congressman John Moolenaar, the issue of the federal government's control over the hourly pay rate for temporary guest workers was discussed. Since 2020, this rate has increased by 28 percent to $18.50 an hour. Additionally, farms are mandated to cover the housing and travel expenses of these workers. The rapid increase in these rates is outpacing the revenue generated from the produce, according to Kropf.
The coalition reports a significant reduction in Michigan's fruit and vegetable production, with a loss of 16,000 acres attributed to the financial strain on farms. Congressman Moolenaar mentioned that the current labor appropriations bill in Congress includes provisions that could potentially revert wages to the previous year's rate, offering some hope to the affected growers.
Source: Fox 17