OAKFIELD TOWNSHIP, Mich. — Michigan growers are enjoying a bumper crop year, yet several farms across the state are scaling back or shutting down. The reason, according to local farmers, is because the labor cost to harvest fruits and vegetables keeps eating more of their income.
It’s harvest time at Hart Farm in northern Kent County.
“Looks like we got a nice crop coming; quality looks to be very good,” said owner Chris Kropf.
That's good news for the farm. Unfortunately, he says it will be harder to turn a profit because of rising labor costs.
“My biggest expense on the P and L is definitely labor, so we got some challenges,” said Kropf.
Hart Farm is not alone.
“We want to raise awareness on the federal wage policies that are putting ... many of our growers at risk. These growers are really in an impossible situation,” said Jamie Clover Adams with Michigan’s Protect Our Produce coalition.
The group held a roundtable Thursday with Congressman John Moolenaar to discuss the problem.
“I think it is an important issue,” said Moolenaar.
The issue is that the federal government controls the hourly pay rate of temporary guest workers on farms. Since 2020 that rate has jumped 28 percent and is now at $18.50 an hour.
“We want migrant workers to be paid well because we want to grow these crops and have at harvest time people who will pick those crops at the same time. We don't need the federal government doing a one-size-fits-all mandate that puts people out of business,“ said Moolenaar.
The federal government also mandates that the farms pay for the workers' housing and travel expenses.
Kropf said, “It’s okay if we are getting that kind of revenue out of our product and that is just not occurring, and the rates are jumping way too fast."
Michigan’s Protect Our Produce coalition says because of this strain on farms, Michigan has lost 16,000 acres of fruit and vegetable production.
“This is a great industry, but it has to make a little bit of money to keep the industry alive,” said Kropf.
Congressman Moolenaar says the current labor appropriations bill winding its way through Congress has language included that would roll wages back to last year’s rate if it is passed.
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