2013 Human Resource Management on Wisconsin Farms
FARM Team
November 2013
Paper no. 2
Wages and Benefits for Farm Employees
Ken Barnett, Jennifer Blazek, Trisha Wagner and Jenny Vanderlin1
_____________________________________________________________________________________
Wages Paid on Wisconsin Farms
Our survey of Wisconsin dairy farmers and their employees also
examined the wages and fringe benefits paid to workers. This study
did not differentiate between native and immigrant workers, but 25
percent of the survey respondents reported non-family immigrant
employees.
We separated the compensation by the job performed on the farm
and by inexperienced and experienced workers. Not surprisingly,
there were significant differences between the starting rates of pay
for experienced and inexperienced workers for all the job categories
of the survey. The average starting wage varied with the job
performed and the amount of experience the worker has (Figure 1).
For both the inexperienced and experienced workers, the highest
paid job on the farm is for herdsman ($11.42 and $14.31 per hour,
respectively).
Dollars per Hour
Figure 1. The average hourly starting wage for inexperienced and
experienced workers for various job categories
$16.00
$14.00
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
Inexperienced
Worker
Experienced
Worker
More than 76,400 people make their
living each year as employees on
Wisconsin farms. Their educational
background and other skills and
characteristics vary widely. Both
employees and farmers want to be
informed about how farm labor is
recruited, and what their most valuable
characteristics are.
To assist them, the University of
Wisconsin-Extension (UWEX) FARM
Team conducted a survey of Wisconsin
farms. UWEX Agriculture Agents
submitted the contact information for
417 farms from 38 counties around the
state. Some agents sent the survey
directly to producers in their county or
included the survey in a newsletter.
There was also an on-line option for
completing the survey. A total of 220
producers from 38 counties completed
the survey. The survey was conducted
from late January to mid-April 2013.
The lowest paid job on the farm is for the “other” category at $8.27 per hour for the inexperienced worker
and $9.55 per hour for the experienced cow pusher.
Within the experienced and inexperienced workers, there were significant starting wage differences
between most of the different job categories. The difference in starting wages of
experienced/inexperienced milkers and experienced/inexperienced pushers was not significant, nor was
the difference between experienced/inexperienced field workers and experienced/inexperienced feeders.
Averaged over all job categories, the average starting compensation is $9.36 per hour for an
inexperienced worker and $11.44 per hour for an experienced worker. In 2010, the National Agricultural
Statistics Service calculated an average wage for all Wisconsin farm workers including dairy workers at
$11.24. This compares to an average starting wage of $10.40 per hour in our study.
Based on Iowa State University Extension survey of farm employees in 2011, cash wages comprised 85.6
percent of the total employee compensation. Using this percentage and the average employee starting
wage of $10.40 from our study, a value of $12.15 per hour for total compensation can be derived.
Wages vary by region (Figure 2). There were significant differences in the starting wages of experienced
and experienced workers by Wisconsin Agricultural Statistics Service region for all the job categories
except for the herdsman position. For example, experienced or inexperienced milkers in the East Central
region (Brown, Calumet, Fond du Lac, Kewaunee, Manitowoc, Outagamie, Sheboygan, and Winnebago
Counties) received significantly more wages than milkers in the Northwest (Chippewa and Polk
Counties), North Central (Clark, Marathon, and Taylor Counties), or Southeast (Walworth and Waukesha
Counties) regions of the state. Likewise, experienced or inexperienced feeders in the East Central region
received significantly more wages than feeders in the Northwest, Southwest (Crawford, Grant, Iowa,
Lafayette, and Sauk Counties), or Southeast regions of the state. For the other job categories, there were
significant differences for most regions with the Southeast region. It should be noted that since there were
so few observations (10 or less) for some jobs in many regions, significant differences for these regions
are not likely to be reliable.
Figure 2. The mean starting wages on an hourly basis for inexperienced and experienced workers for
various job categories by Wisconsin Agricultural Statistics Service region
14.00
Dollars per Hour
12.00
10.00
8.00
Inexperienced Worker
6.00
Experienced Worker
4.00
2.00
0.00
C
EC NC NE NW SC SE SW WC
Region
Hourly wages were paid by 89 percent of the farm employers in our study. Forty-six percent of the
herdsmen received an annual salary.
Employers do not tend to pay extra wages for overtime. Our survey found that 89 percent did not pay
overtime wages. Of the 11 percent who did, they usually start paying after 40 hours per week at a rate of
1.5 times the normal hourly rate.
Non-Wage Benefits on Wisconsin Farms
Besides wages, farm employers offer compensation in the form of fringe benefits and bonuses. Thirty-six
percent of farm employers offer a bonus or incentive plan to their employees. Of those who offer a plan,
59 percent base it on the somatic cell count (SCC). For others, they base it on such factors as other herd
health and milk quality factors, and Christmas. Some other factors are work productivity/ job
performance, attitude, dependability, time worked, and loyalty.
Although we did not ask the survey respondents for the value of the bonuses given to their employees, an
Iowa State University Extension survey of farm employees in 2011 did. Bonuses comprised 3.7 percent of
the total employee compensation. Using this percentage and the calculated $12.15 per hour for total
compensation from our study, a value of $0.45 per hour for bonuses can be derived.
Seventy-three percent of farm employers offer other forms of non-monetary compensation for their
employees (Figure 3). The top form of compensation is housing (27 percent). Those offering housing
compensation offer either free rent (73 percent) or reduced rent (27 percent). Sixty-eight percent of the
respondents who indicated that they employed non-family immigrants offered free or reduced rent to their
employees. Free dairy products or meat was second at 22 percent and continuing education was third at
16 percent. Many employers offer other forms (11 percent) of compensation. Among the predominant
types are paying for utilities, other (retirement, animals, paying medical bills, work laundry), and free
meals.
Figure 3. Forms of non-monetary compensation for farm employees (percent of total responses)
0%
3% 2%
6%
Housing
27%
11%
Free Dairy Products or Meat
Continuing Education
Health insurance - individual
Other
Health insurance - family
13%
Other insurance
Disability insurance
22%
16%
Life insurance
Although we did not ask the survey respondents for the value of non-monetary compensation given to
their employees, an Iowa State University Extension survey of farm employees in 2011 did. Benefits
comprised 10.8 percent of the total employee compensation. Using this percentage and the calculated
$12.15 per hour for total compensation from our study, a value of $1.31 per hour for benefits can be
derived.
Most farm employers offer paid non-work day for their employees. Averaged over all responses, they
offer 5.6 days of vacation, 1.0 days of sick leave, 1.4 days for holidays, and 0.7 days of personal time.
If just the surveys that reported paid non-work days are tabulated, then the averages increase. They offer
7.3 days of vacation, 4.3 days of sick leave, 3.9 days for holidays, and 2.9 days of personal time.
Conclusions:
There are many factors which a farm employer must consider to determine a farm employee’s wages. The
type of position on the farm, whether the position requires experience or inexperience, and the region of
the state are the chief factors based on our survey results.
Farm employers also offer compensation in other forms. This appears to be more related to the farm
compared to the factors noted above. Bonus or incentive plans are usually related to the somatic cell
count. Vacation, sick leave, holidays, and personal time are usually offered. Other forms of compensation
for their employees are housing, free dairy products or meat, and continuing education are the chief types
offered.
__________________________
1
Ken Barnett, Extension Educator for University of Wisconsin-Madison Center for Dairy Profitability and lead author of this
paper; Jennifer Blazek, Agriculture Agent for Polk County University of Wisconsin –Extension; Trisha Wagner is the
Agriculture Agent for Jackson County University of Wisconsin – Extension; and Jenny Vanderlin, Assistant Director for
University of Wisconsin -Madison Center for Dairy Profitability. All are members of the Human Resource Management
Workgroup, FARM Team, University of Wisconsin-Extension.
This series of papers is a product of the Human Resource Management Workgroup of the
FARM (Farm and Risk Management) Team of the University of Wisconsin – Cooperative
Extension.
For further information on the content of this paper or others in the series, contact:
Ken Barnett at 715-355-4561 or ken.barnett@ces.uwex.edu
FARM Team Website: http://www.uwex.edu/ces/farmteam/
The University of Wisconsin-Madison/Extension provides equal opportunity employment and
programming, including Title IX requirements.