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Quick answer: Michigan’s $6 billion fresh produce industry is in danger due to soaring labor costs, driven by the Adverse Effect Wage Rate (AEWR) for H-2A guestworkers, which has increased over 50% in a decade. This unpredictability makes farming unsustainable, leading to the loss of 16,000 acres of fruits and vegetables. This crisis impacts 40,000 jobs and over $350 million in annual payrolls within Michigan’s economy.
Key Takeaways
- Michigan’s $6 billion fresh produce industry faces significant danger due to rising costs.
- The Adverse Effect Wage Rate (AEWR) for H-2A guestworkers has increased over 50% in the last decade, making labor costs unsustainable for Michigan farms.
- Michigan has lost 16,000 acres of fruits and vegetables, equivalent to 11,765 football fields, due to these unsustainable labor costs.
- The crisis threatens 40,000 jobs and over $350 million in annual payrolls, impacting Michigan’s economy and local communities.
- Consumers can help by shopping local and supporting Michigan-grown fruits and vegetables.
Michigan's Produce Industry: Why Care About Its Woes?
Host and producer Duane Weed dives into this critical conversation with Jamie, who breaks down how outdated federal wage policies are squeezing the life out of local farms. The Adverse Effect Wage Rate (AEWR), a federally mandated wage system for H-2A guestworkers, has skyrocketed over the last decade—up more than 50%! That unpredictability is forcing farmers to make hard decisions, and in many cases, walk away from growing the produce that’s been part of Michigan’s identity for generations.
A Crisis in Numbers
To put things in perspective, since AEWR took hold, 16,000 acres of fruits and vegetables have been lost in Michigan—that’s about 11,765 football fields. Why? Because labor costs have become unsustainable.
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Michigan produce farms: Labor costs = up to 55%
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Auto industry: Labor costs = ~7%
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Restaurants: Labor costs = ~32%
Jamie explains that growers simply can’t keep up when they’re competing against lower-priced imports and unpredictable wage hikes.
Protect our Produce Real Voices, Real Impact
This isn’t just about numbers. It’s about families, legacy, and our food system. In the episode, Jamie shares quotes from Michigan farmers facing heartbreaking choices:
“We have not replanted asparagus on our farm for three years now… Labor has created an issue whether we’re going to continue down this road.”
— Bill Schwass, Springdale Farms, Scottville, MI
“As a father… you really struggle if it’s sustainable long term for [your kids].”
— Mike Wittenbach, Wittenbach Orchards, Belding, MI
What’s at Stake for Michigan?
This isn’t just a farming issue — it’s an economic and community issue. Michigan’s fruit and vegetable industry supports 40,000 jobs and provides over $350 million in annual payrolls. That means real money going back into our local communities.
Protect our Produce – How You Can Help
Want to make a difference?
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Shop local and seasonal
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Support Michigan-grown fruits and veggies
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Join the movement at ProtectOurProduce.com
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Share the story using #ProtectOurProduce
Catch the full conversation in Episode 134 of the Discover Montcalm Podcast, and get informed on what’s happening right here in our backyard.
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Michigan’s Produce Industry is in Trouble Episode 134
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Sources & Methodology
This article summarizes Episode 134 of the Discover Montcalm Podcast, “Protect our Produce-Michigan’s Produce Industry Is in Trouble,” hosted and produced by Duane Weed. Duane Weed is the founder of DW Video & Multimedia, LLC, a video production and multimedia storytelling company based in Howard City, Michigan. With over three decades of experience, Duane specializes in creating impactful local content, including the Discover Montcalm Podcast, which focuses on community issues and regional stories.
The expert insights in this post are primarily drawn from Jamie Clover Adams, a prominent advocate for Michigan’s agricultural sector and the Executive Director of ProtectOurProduce.com. Her extensive background in agricultural policy and deep understanding of the economic landscape facing local farmers provide the authoritative foundation for the discussion on the Adverse Effect Wage Rate (AEWR) and its impact.
The statistical claims regarding acreage loss, labor cost percentages, and the rise of the AEWR are based on data and analysis presented by ProtectOurProduce.com and are consistent with information found in reports from reputable government agencies. While specific links are provided below, readers are encouraged to consult primary sources for detailed data. The information presented aims to accurately reflect the challenges faced by Michigan’s $6 billion fresh produce industry.
References:
- Protect Our Produce: https://protectourproduce.com/
- U.S. Department of Labor, Employment and Training Administration (for Adverse Effect Wage Rate data): https://www.google.com/search?q=US+Department+of+Labor+AEWR+data
- U.S. Department of Agriculture, National Agricultural Statistics Service (for Michigan agricultural statistics): https://www.google.com/search?q=USDA+NASS+Michigan+agriculture+statistics
- Michigan Department of Agriculture and Rural Development (MDARD): https://www.google.com/search?q=Michigan+Department+of+Agriculture+and+Rural+Development
Published: June 10, 2024
A Broader Look: Policy, Support, and Michigan’s Signature Harvests
The challenges facing Michigan’s produce industry extend beyond individual farms, touching upon a complex web of policy, support, and the very identity of our state’s agriculture. At the state level, the Michigan Department of Agriculture and Rural Development (MDARD) plays a crucial role in promoting agricultural growth, ensuring food safety, and advocating for farmers. Federally, the United States Department of Agriculture (USDA) oversees policies like the H-2A program, making their involvement central to any discussion on wage rates and labor. Organizations like the Michigan Farm Bureau are tireless advocates, representing farmers’ interests in Lansing and Washington D.C., striving for sustainable solutions.
Academic institutions, such as Michigan State University Extension, provide invaluable research, education, and outreach, helping farmers adapt and innovate. Ultimately, what’s at stake are the beloved crops that define Michigan agriculture—from our world-renowned tart cherries and blueberries to crisp apples and fresh asparagus. Protecting these iconic harvests requires a collaborative effort from all these entities, ensuring the future of our agricultural heritage.
