Farm Labor in Michigan Vera Bitsch Dept of Agricultural, Food, - - PowerPoint PPT Presentation

farm labor in michigan
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Farm Labor in Michigan Vera Bitsch Dept of Agricultural, Food, - - PowerPoint PPT Presentation

Farm Labor in Michigan Vera Bitsch Dept of Agricultural, Food, and Resource Economics Michigan State University Value of Ag Products Sold in Michigan 2 0 0 7 Grain, beans Vegetables Fruits Ornamental Other crops Poulty, eggs Cattle,


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SLIDE 1

Farm Labor in Michigan

Vera Bitsch Dept of Agricultural, Food, and Resource Economics Michigan State University

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SLIDE 2

Value of Ag Products Sold in Michigan 2 0 0 7

Grain, beans Vegetables Fruits Ornamental Other crops Poulty, eggs Cattle, calves Milk, dairy Hogs, pigs Other animals Data Source: Census of Agriculture

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SLIDE 3

Michigan’s Ag Ranks

22 5,753 Market value of agricultural products 10 34 Other animals and other animals products 28 6 Aquaculture 16 24 Horses, ponies, mules, burros, and donkeys 20 9 Sheep, goats, and their products 12 357 Hogs and pigs 7 1,286 Milk and other dairy products from cows 28 449 Cattle and calves 25 259 Poultry and eggs 14 227 Other crops and hay 3 29 Cut Christmas trees, short rotation woody crops 6 623 Nursery, greenhouse, floriculture, and sod 5 392 Fruits, tree nuts, and berries 9 347 Vegetable, melons, potatoes, and sweet potatoes 13 1,711 Grains, oilseed, dry beans, and dry peas U.S. Rank Market Value (Million Dollar) Commodity Group

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SLIDE 4

Top States w ith Labor I ntensive Crops

Fruits+

 CA  FL  WA  OR  MI

Vegetables+

 CA  FL  AZ  WA  ID

Flowers+

 CA  FL  OR  PA  TX  MI

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SLIDE 5

Payroll & Hired W orkers

2,637 21,878 U.S. (total) 106 817 Oregon 238 1,151 Washington 155 1,170 Texas 115 1,209 Florida 448 5,016 California 239 1,914 Lake States (Total) 77 522 Minnesota 76 785 Wisconsin 86 607 Michigan Hired Worker (Thousand) Payroll (Million Dollar) State

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SLIDE 6

Labor Expenses

100,000 200,000 300,000 400,000 500,000 600,000 700,000 1997 2002 2007 L a b o r E x p e n s e s / $ 1 , 0 0 0 Contract labor Hired labor

Data Source: Census of Agriculture

5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 1997 2002 2007 L a b o r E x p e n s e s / $ 1 0 0 0 Contract labor Hired labor

Michigan U.S. ( total)

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SLIDE 7

Contract Labor in Labor I ntensive Crops

U.S. (total)

 Fruits and tree nuts

36.0%

 Vegetables, melons

28.6%

 Ornamentals

6.1%

Michigan

 Fruits and tree nuts

10.8%

 Vegetables, melons

4.9%

 Ornamentals

4.3%

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SLIDE 8

Labor I ntensity in Michigan Production

Data Source: Census of Agriculture 0% 10% 20% 30% 40% O i l s e e d , g r a i n s V e g e t a b l e s , m e l

  • n

s F r u i t , t r e e n u t s O r n a m e n t a l s O t h e r c r

  • p

s B e e f c a t t l e , f e e d l

  • t

s D a i r y c a t t l e , m i l k H

  • g

s , p i g s P

  • u

l t r y , e g g s O t h e r a n i m a l s T

  • t

a l Labor Expenses/Total Expenses 1997 2002 2007

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SLIDE 9

Labor Productivity in MI

Dollar Sales/ W orker

6 6 ,8 4 2 4 3 ,4 3 4 3 7 ,2 1 7 Total 3 6 ,6 2 4 3 3 ,4 1 1 2 2 ,5 4 0 Ornam entals 3 0 ,7 4 3 2 7 ,7 5 2 2 2 ,2 0 2 Vegetables, m elons 1 6 ,6 0 9 9 ,3 5 4 9 ,9 0 9 Fruits, tree nuts 2 0 0 7 2 0 0 2 1 9 9 7 Com m odity Group

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SLIDE 10

Monetary Labor Productivity in MI

8 .8 6 7 .4 7 8 .9 6 Total 1 0 .1 9 8 .7 7 1 0 .7 2 Dairy cattle, m ilk 3 .6 6 3 .8 6 3 .8 3 Ornam entals 3 .9 5 3 .2 5 4 .0 6 Fruits, tree nuts 4 .6 5 5 .4 9 5 .5 1 Vegetables, m elons 2 7 .5 1 2 1 .0 8 2 3 .5 2 Oilseed, grains 2 0 0 7 2 0 0 2 1 9 9 7 Com m odity Group

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SLIDE 11

Labor Com position in MI

8 6 ,0 7 2 8 6 ,8 5 5 9 5 ,8 6 5 Total w orkers hired 2 4 ,2 8 4 2 3 ,0 3 4 2 0 ,9 9 6 Em ployed 1 5 0 days or m ore 6 1 ,7 8 8 6 3 ,8 2 1 7 4 ,8 6 9 Em ployed less than 1 5 0 days 2 0 0 7 2 0 0 2 1 9 9 7 W orkers Hired

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SLIDE 12

W age Rates – Lake States

Data Source: NASS

6 7 8 9 10 11 12 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 US-Dollars/hour Lake States Michigan Minnesota Wisconsin U.S. total

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SLIDE 13

W age Rates – Michigan, Florida, Texas

Data Source: NASS 6 7 8 9 10 11 12 1 9 9 7 1 9 9 8 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 US-Dollars/hour Florida Texas Michigan

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SLIDE 14

Since the 1 9 9 7 Ag Census

Expenses for hired farm

labor increased by 64.4%

Expenses for contract labor

increased by 46.6%

Of labor intensive crops, only

fruit production saw a small increase in the share of contract labor in MI

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SLIDE 15

Since the 1 9 9 7 Ag Census

 As a share of total expenses,

labor expenses increased slightly in vegetable and fruit farming, and declined in ornamental production

 Sales increased per hired worker  Sales decreased per dollar of

labor expenses

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SLIDE 16

Since the 1 9 9 7 Ag Census

 The number of hired workers

fell, except in fruit farming

 Number of worker employed less

than 150 days fell

 The share of workers employed

150 or more days grew, except for fruit farming were its similar to 1997

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SLIDE 17

Betw een 1 9 9 7 and 2 0 0 7

 Farm labor wage has grown by

46.1% or $3.29

 Since Michigan’s farm wage rate

decline in 2004, similar to U.S. average

 Labor expenses have increased

more than the wage rate

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SLIDE 18

Conclusions

In labor intensive crops, sales

increases have not kept up with labor expense increases

May result in pressure to

reduce labor use, apply labor saving technology and production methods