The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series University of Georgia November 15, 2012 Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University Overview Motivations for Study Methods & Results Implications Motivations Over Past 7-8 Years, Increasing Shortages of Labor in Agriculture Construction, Oil/Gas Expansion, Hurricane Relief & Increased Enforcement of Immigration Laws Are Main Reasons Ag & Producer Groups Concerned About Impacts of Labor Losses on Farms & Industries Current Population Survey Estimates 57% of Ag Workforce is Foreign Born Lack of Information Our Profession Has a Role What Was Done? National Mail Survey of 5,005 Dairy Farms in 2008 Random Sample of 715 Farms in 7 Regions 1,344 of 2,071 Returned Surveys Were Analyzed Flynn Adcock, David Anderson, Dwi Susanto & I Conducted in Analysis Only Farms With Hired Labor Were Analyzed Sample Size Varied by Question Survey Regions Northwest Northeast North Midwest WASHINGTON MONTANA NORTH DAKOTA VERMONT MICHIGAN MINNESOTA OREGON MAINE NEW HAMPSHIRE IDAHO WISCONSIN SOUTH DAKOTA MASSACHUSETTS NEW YORK WYOMING NEBRASKA NEVADA IOWA PENNSYLVANIA INDIANA OHIO WEST VIRGINIA COLORADO KANSAS CALIFORNIA California ARIZONA DELAWARE ILLINOIS UTAH NEW MEXICO OKLAHOMA MISSOURI ARKANSAS Southwest MARYLAND VIRGINIA KENTUCKY TENNESSEE NORTH CAROLINA SOUTH CAROLINA ALABAMA TEXAS RHODE ISLAND CONNECTICUT NEW JERSEY GEORGIA Southeast MISSISSIPPI LOUISIANA FLORIDA Survey Results Farm Structure & Characteristics Hired Labor, Wages & Employee Characteristics Worker Documentation & Enforcement South Is Emphasized Milk Production per Farm 62% of Milk Production from Farms Employing Immigrant Labor Share of Income from Dairy Farm - % of Farms - Employees per Farm 47% of Farms Employed Immigrant Labor Employee Origin & Wages 98% of Immigrant Labor from Mexico 8.7 1.7 Non-Wage Benefits Labor Shortages & Turnover 20% of Farms Had Labor Shortage Impacts of Labor Shortages Reactions to Labor Shortages Employee Documents Retained Confidence in Documents 38.4 38.6 Concern About ICE Raids 46.6 Implications Immigrant Labor, Especially from Mexico, Is Important to Dairies in the South Dairies Employing Immigrant Labor Pay Higher Wages Labor Shortages & Turnover Had Negative Impacts on Some Dairies Implications Increasing Wages May Not Attract More Labor Some Farmers Concerned About Documentation Lack of Immigration Policy Reform May Make Labor Situation Worse Thanks!! Questions? Parr Rosson 979-845-2116 prosson@tamu.edu