MSU researcher studies labor shortages in agriculture

Dec 18, 2024

Michigan State University agricultural economist Zach Rutledge has received a $650,000 grant from the U.S. Department of Agriculture’s National Institute of Food and Agriculture to examine labor challenges in the U.S. agricultural sector and potential policy solutions.

Rutledge, an assistant professor in the Department of Agricultural, Food and Resource Economics, focuses on how the aging and shrinking U.S.-based agricultural workforce impacts farming practices, including the increased use of technology and reliance on the H-2A visa program. This program allows employers to hire temporary nonimmigrant workers for agricultural jobs.

A key part of the research will explore how H-2A’s minimum wage, known as the Adverse Effect Wage Rate (AEWR), affects wages for domestic farmworkers. In Michigan, the AEWR increased from $15.37 per hour in 2022 to $18.50 in 2024.

“Our overall aim for the grant is to provide context on both sides of the labor market,” Rutledge said. “We’re not saying certain policies would be good or bad. We’re just providing evidence.”

The study will also consider healthcare coverage, domestic workforce trends, and the nation’s reliance on agricultural imports. Results will be shared through academic journals and MSU Extension publications. The project is funded through 2028.

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