Progress report for EDS24-065
Project Information
Employee turnover is a significant issue for farm businesses, as operators face challenges in recruiting and retaining trained workers. Turnover isn’t just a quality-of-life issue; it’s also a financial problem that hurts the overall profitability of farm businesses. It’s significant enough to hinder the growth and stability of sustainable agriculture. In 2022, 350 farm jobs in North Carolina were filled by U.S. workers; however, reports indicate that virtually all of them quit before their contracts expired. Why? Workers say the top reason for leaving farm positions is the lack of compensation and benefits for the work performed. Without these incentives, farm employers are vulnerable to labor loss, which translates to lost time, money, and resources, risking the viability of the farm business.
Farm employers need forward-thinking compensation and benefits that are aimed at retaining their employees. Incentives of bonus pay, raises, and health and retirement benefits incentivize longevity in a career on the farm through more control over one’s economic future and a greater return on one's hard work. Farm employers are vulnerable to turnover if they don’t have a plan for advancing employee compensation alongside profitability. For employers wanting to create a forward-thinking compensation plan, many don’t know how to do so in alignment with the law.
Farm Commons’ series of four comprehensive written guides on employee benefits meets this need by helping Southern farm employers address the legal and practical implications of structuring employee contracts or arrangements to include bonuses & pay raises, health benefits, and retirement benefits.
First, A Basic Roadmap to Farm Employee Benefits is an overview guide that highlights why employee benefits matter, outlines common benefit options that are covered in-depth in the topic-specific guides, and provides an at-a-glance comparison chart to help employers determine which option(s) would be the best fit for their operation.
Second, Offering Bonuses and Pay Raises to Farm Employees describes the best practices and legal considerations of bonuses and pay raises.
Third, "Offering Health Benefits to Farm Employees" describes the important legal responsibilities associated with common health benefit options, including group health insurance, QSEHRA, and health stipends.
Fourth, Offering Retirement Benefits to Farm Employees describes important legal responsibilities of common retirement benefit options, including SEP IRA, SIMPLE IRA, 401(k), and payroll deduction IRA.
While these written guides provide detailed knowledge, they are not just pages of text about the law. They are written in plain language and incorporate interactive elements, including reflection exercises and activity prompts, throughout the text. They empower readers to understand and identify what they need to do to develop creative compensation packages that mitigate the risk of employee turnover according to their goals, budget, and scale. Reflection questions are included in each written guide to help producers identify which options they want to pursue.
This project goes beyond written guides. We recognize that opportunities to discuss employee benefit options with peers are key to developing new practices and behaviors. We therefore offered opportunities for peer engagement with the educational material in two ways.
The first opportunity for peer engagement was through the Producer Experience Team (PET). Prior to publishing the written guides, we convened a group of producers in the Southern region who aspired to develop employee stake in their business. The PET participants reviewed the written guides individually and then came together to discuss their lived experience in relation to the material. They asked questions, offered insights and ideas from their experiences, and provided each other with inspiration and solidarity to take action on one or more of the employee benefit options. We collected feedback from the PET participants and incorporated it into the final guides. In this way, the written guides were developed with direct input and insights from producers.
In addition, after publication of the written guides, we hosted a series of three webinars: (1) Getting Started with Farm Employee Benefits: General Strategies and Considerations, (2) I Want to Offer a Pay Raise or Bonus to My Farm Employees. Where Do I Start?, and (3) I Want to Offer Health Benefits to My Farm Employees. Where Do I Start? These webinars served to promote the written guides as well as to provide attendees with key information about the various employee benefit options discussed and offer them direction in prioritizing next steps. In addition to receiving educational information, webinar attendees also had the option to engage in small group discussions, sharing their ideas and questions with peers to help build their confidence in moving forward in a supportive, peer-based environment.
This multi-modal approach to education has proven to empower farm employers with options for beginning the process of creating employee stake in the business, thereby creating a cohesive plan for how they want to move forward, along with opportunities for peer support along the way.
- 161 producers improved their knowledge of the 3 options for developing employee stake in farm business success. This is 83% of the 194 producers that this project reached.
- 135 producers are empowered to implement one of the 3 options for employee stake building in their farm business. This is 70% of farmers reached through the project as a whole.
- 194 producers improved their confidence level in addressing employee pay and benefits in a way that develops employee stake in the business.
- 6 producers in the Southern region assumed leadership among peers on proactive prevention of employee turnover after participating in the Producer Experience Team process.
Education
This project helps Southern farm employers address the legal and practical implications of structuring employee contracts to include (1) bonuses, (2) pay raises, and (3) health and retirement benefits. Our guides aren’t just pages of text about the law, although we provide detailed knowledge. They are plain-language and interactive with reflection exercises and activity prompts incorporated into the text, empowering readers to understand and identify what they need to do to develop creative compensation packages that mitigate the risk of employee turnover according to their goals, budget, and scale. A worksheet accompanies the written guide to help producers identify which options they want to pursue.
Recognizing that opportunities to discuss these options with peers is key to developing new practices and behaviors, ee convened a group of producers in the Southern region who want to develop employee stake in their business to review and discuss their lived experience in relation to the guides, in what we call the Producer Experience Team (PET). After publication, we hosted three webinars to disseminate and promote the guides. Webinar attendees also had the option to engage in small group discussions to share their ideas and questions with peers to help build their confidence in ideas for moving forward in a supportive, peer-based environment.
This multi-modal approach to education empowers farm employers with options for beginning the process of creating employee stake in the business, creating a cohesive plan for how they want to move forward with opportunities for peer support along the way.
Educational & Outreach Activities
Participation Summary:
Education
This project comprises three educational components. First, we created a series of four written guides on employee benefit options for agricultural employers. Second, we convened a Producer Experienced Team (PET), where six producers shared their lived experiences and insights on employee benefits, providing feedback and insights that we incorporated to enhance the written guides. Third, we hosted a webinar series that promoted the written guides and provided attendees with key information about employee benefit options.
Here is how we implemented the project’s educational components:
- Developed and distributed four written guides on employee benefit options.
In 2024, we drafted and finalized four resources: First, Basic Roadmap to Farm Employee Benefits is an overview guide that highlights why employee benefits matter, outlines common options, and provides an at-a-glance comparison chart to help employers determine which option(s) would be the best fit for their operation. Second, Offering Bonuses and Payraises to Farm Employees describes the best practices and legal considerations of bonuses and pay raises. Third, "Offering Health Benefits to Farm Employees" describes the important legal responsibilities associated with common health benefit options, including group health insurance, QSEHRA, and health stipends. Finally, Offering Retirement Benefits to Farm Employees describes important legal responsibilities of common retirement benefit options, including SEP IRA, SIMPLE IRA, 401(k), and payroll deduction IRA.
- Convened Producer Experience Team, who shared lived experience and insights on employee benefit options.
In January 2025, we recruited six participants to our Producer Experience Team (PET). The PET participants reviewed the written guides individually. They then attended three 90-minute meetings in February 2025, during which we highlighted key aspects of each benefit option and provided opportunities for both prompted and open discussion about their lived experiences in relation to the material. The participants asked questions, offered insights and ideas based on their experiences, held smaller breakout discussions, and provided each other with inspiration and solidarity to take action on one or more of the employee benefit options. We collected feedback about the written guides from the PET participants and incorporated it into the final guides. In this way, the written guides were developed with direct input and insights from producers.
In March 2025, we finalized the written guides, published them on our website, and initiated the implementation of our outreach plan.
- Hosted a series of webinars on employee benefit options
In April 2025, we hosted a series of three webinars: (1) Getting Started with Farm Employee Benefits: General Strategies and Considerations, (2) I Want to Offer a Pay Raise or Bonus to My Farm Employees. Where Do I Start?, and (3) I Want to Offer Health Benefits to My Farm Employees. Where Do I Start? These webinars served to promote the written guides as well as to provide attendees with key information about the various employee benefit options discussed and offer them direction in prioritizing next steps. In addition to receiving educational information, webinar attendees also had the option to engage in small group discussions to share their ideas and questions with peers, helping to build their confidence in moving forward in a supportive, peer-based environment.
This educational project successfully achieved its objectives of increasing knowledge about employee options and empowering employees to implement an employee benefit. The series of four written guides provides in-depth information, while the three PET sessions and three webinars provide key insights that are reinforced by the written guides. All learning experiences included interactive elements that allowed learners to formulate their own plan for creating employee stake in their operation. The information and interactive tools in the written guides, PET sessions, and webinars empowered folks to determine which benefit option(s) were best suited for their situation, and which were not. The specific action steps outlined in these educational offerings equipped producers to move forward with the most suitable option(s). In addition, the project successfully achieved its objectives for producers participating in the PET, enabling them to gain confidence and leadership opportunities. All six participants in the PET reported an increase in confidence about employee benefit options as a result of the experience, and that they saw opportunities to share the information they gained with peers in their communities.
Outreach
The clear titles and descriptions of the deliverables, along with the program's focused, results-oriented nature, primarily drove outreach for the written guides and webinars. We created a marketing package that included descriptive text about the written guides and webinars, both in a long format for use in emails and blog posts, and in a short format for social media blurbs, accompanied by visuals depicting farm employment. We promoted this content on our website page banners and blog, sponsored social media posts on Facebook (2,000+ followers) and Instagram (1,000+ followers), and twice in our monthly The Sprout newsletter (5500+ subscribers) in the 8 weeks leading up to publication of the written guides. We also collaborated with the Producer Experience Team (PET) and sustainable agriculture organization partners to conduct outreach to their audiences using our marketing package, promoting it during the same time period.
Overall, the target market for this project consisted of Southern farm operators with the capacity to implement employee benefit options within their labor programs. At the same time, this project did have a smaller core market. Farm employees have the most to gain from this programming, but indirectly. They have significantly less power over their employment circumstances than their employers; however, becoming aware of these options can increase their confidence in discussing the creation of employee benefit options in their workplace. Directly, farm employers have much to gain by implementing legal options for developing employee stake in farm business success, as it directly correlates to reduced risk of voluntary turnover (employees choosing to leave). We targeted a mix of both farm employers and farm employees. Many farm employers in our audience are justice-minded and want to promote workplace equality. This vetted audience has expressed a demand for this curriculum, providing us with a strong outreach base.
In our outreach, we targeted producers who use organic methods and/or sell directly to consumers, as they have the most to gain from participating in this program. This is because farm employment law is more problematic for direct-to-consumer and organic producers as they utilize more labor in producing and marketing their crops. Additionally, farm law as a whole has been written and designed with the larger-scale, commodity-style farm operation in mind. As such, when farm law is applied to smaller, organic, and direct-to-consumer farms, many issues result. Some laws do not address their application to alternative farms, leaving the farm operator to guess. Some laws fit the alternative operation quite awkwardly, forcing some difficult compromises. In other cases, alternative farms are ignored altogether, leaving farm owners uncertain of their obligations. Our written guides and webinar series resolve these issues.
Given that our core audience is approximately 65% female, our general email distribution and outreach are targeted at female farm operators. Farm law trainings appear especially attractive to women for several reasons. Many women fill the role of risk manager on the farm, and they lead responsibility for risk mitigation. Many women find our programming to be a much more approachable way to learn, as compared to seeking the advice of an attorney. Women also tend to engage more fully with the peer-based components of our programming, giving them added success in the program.
Learning Outcomes
Improved knowledge of how to offer bonuses and pay raises to employees
Improved ability to to offer bonuses and pay raises to employees
Improved knowledge of how to offer health benefits to employees
Improved ability to offer health benefits to employees
Improved knowledge of how to offer retirement benefits to employees
Improved ability to offer retirement benefits to employees
Project Outcomes
- 161 producers improved their knowledge of the 3 options for developing employee stake in farm business success. This is 83% of the 194 producers that this project reached.
- 135 producers are empowered to implement one of the 3 options for employee stake building in their farm business. This is 70% of farmers reached through the project as a whole.
- 194 producers improved their confidence level in addressing employee pay and benefits in a way that develops employee stake in the business.
- 6 producers in the Southern region assumed leadership among peers on proactive prevention of employee turnover after participating in the Producer Experience Team process.
With 161 farmers improving their knowledge of the legal and practical options for developing shared stake in the business, we are confident we’ve increased farm business profitability and quality of life for farm employers and employees alike, as described below.
We also know farmers are taking action based on the project, with 135 producers saying they feel empowered to move forward quickly. This improves the profitability of farms that implement these tools by reducing turnover and loss of investment in farm employee training. These financial incentives (bonuses, pay raises, retirement benefits) keep employees invested in the current and future operations of the business
This project meaningfully advanced farmer confidence. This enhanced the quality of life for farmers by helping them resolve concerns that keep them awake at night. When a farm employer is concerned about an employee leaving, stress is high as it is unknown who will fill that employee’s role in producing the crops and livestock. These concerns are often rooted in not knowing whether an employee is satisfied with the nature of their work and the corresponding compensation. On the flip side, farmers who assume that employees are happy are blindsided and suffer a loss in quality of life when an employee abruptly leaves, leaving them understaffed and overwhelmed. Quality of life improves when farmers develop stake sharing options that incentivize employee retention and longevity in the business through compensation and benefits packages that create avenues for clear communication and advancement, giving them greater piece of mind that the investment in their personnel will continue to benefit the business rather than being lost in a moment’s decision to leave.
This project also sustained the economic viability of farm operations that are vulnerable to employee turnover, compounded by labor shortages. When there is a clear plan for advancing compensation and benefits according to specific criteria and associated levels of employment, the risk of employee turnover is lowered, leaving farm operations more resilient and economically.
Leadership is also a measure of quality of life improvements, and our participants reported an increase in their ability to lead on these issues within their communities.
Anecdotal support of project outcomes:
Comments and discussion from the six producers participating in the Producers Experience Team (PET) further illustrate how these objectives were met, primarily through reviewing and reflecting on the information included in the written guides.
Their comments show not only increased knowledge of the three benefit topics – bonuses and pay raises, health benefits, and retirement plans – but also a clear desire to take action to implement at least one benefit option for their farm operation, as well as growing confidence and opportunities for leadership in their communities.
Improve knowledge of the three employee stake-building options
Across all three employee benefit topics, participants gained a grasp of terminology and awareness of risk mitigation and cost implications by reading the written guides:
-
“The reading got me clearer on creating an internal pay rubric.. And that it’s in my best interest to start slow here.”
-
Writing down criteria for pay raises and bonuses… seems like it would minimize confusion and buy-in.”
-
“I learned bonuses are deductible expenses –I hadn’t been doing that correctly.”
-
“I hadn’t even considered a written bonus policy; now I know we’ve been giving only ‘spot bonuses.”
-
“The QSEHRA portion was brand new to me–it really opened things up.”
-
“Health stipends are a flexible benefit I can offer to all employees.”
-
“Appreciated the general layout of pros/cons of our options. I now have questions for our own Marketplace to see what the average cost is so we can determine what amount would be helpful.”
-
“I never knew SEP IRAs were 100% employer-funded–makes sense for fluctuating farm income.”
-
“I had never heard of any of these plans except for the 401(k). All new to me.”
-
“When I calculated 3% for a SIMPLE IRA match, the number seemed attainable.”
Gained confidence and leadership opportunities.
Comments from the PET participants illustrate how they gained confidence with the material and developed a sense of empowerment to take action, promoting employee benefits within their operations and communities.
- “Inspired me to write an employee handbook.”
- “I’m rolling out a new employee evaluation form this season.”
- “I’d love to talk about how other farms structure raises and bonuses … to hear others’ experiences.”
- “This series helped me understand the issues so I can better answer questions from the farmers' markets I work with.”
- “Thinking through retirement plans reinforces that farming is career-worthy and worth investing in.”
- “I’ll be using this information in the work I do to support farmers.”
- “The reading makes me want to push for broader retirement-plan reforms at the state or federal level.”
Empowered to implement at least one option
During our last session together, the PET participants each outlined tangible plans to implement an employee benefit option for their farm operation. Some also acknowledged that they were not ready to implement certain benefits at this time for financial and administrative reasons; however, they felt empowered and confident in making this informed decision not to take action.
- “Seems like I’m on the right track with health stipends… particularly for part-time employees.”
- “Excellent presentation. Demystified employer offered health plans, enough for me to know I shouldn't look into it more.”
- “I plan to shift our spot bonuses toward a ‘reaching-milestones’ system.”
- “Remembering it’s ok to start small makes me excited to explore health-insurance options.”
- “I plan to research the SHOP marketplace [for health benefit plans] because of its tax credits.”
- “I’m inspired to look into the SECURE 2.0 tax credits for our three-person team.”
- “Having a written bonus policy with measurable criteria is my next step.”
- “QSEHRA seems the easiest way forward for my farm–employees only get reimbursed as they need services.”
Overall, the PET conversations confirm that the project met its three objectives. What’s more, throughout the PET conversations, participants expressed shared and guiding values of transparency, equity, and creating a better livelihood for their workers. They made clear connections between fair processes and transparent communication to increase employee retention. “When employees feel appreciated, the farm wins.” But their ultimate intention extended beyond retention – it was more about cultivating relationships and creating a culture of care and respect:
- “Farmers deserve benefit packages and wages that support them as individuals and their circle of care.”
- “In this work, it is important to attract folks with meaningful and tangible benefits. They have to be able to walk away feeling empowered, included, and engaged in this work.”
- “Health stipends are a good start to support our culture of taking care of ourselves.”
- “I realized how important it is to talk with your employees about what they want. Until you really ask what they want, you won’t have direction in making these plans.”
- Relationships are at the center of the reasoning for implementing bonuses and pay raises, care for relationships.
Participants consistently framed benefits as a reflection of caring for people, not just a compliance exercise for retention.
- Content on Health Savings Accounts. Our Producer Experience Team (PET) discussions highlighted one content gap that deserves priority attention in future materials: Health Savings Accounts (HSAs). Many farm owners are LLC members taxed as partners or sole proprietors. The IRS treats them as self-employed, so they generally cannot receive tax-free reimbursements through a QSEHRA unless their business elects corporate taxation or they join as a spouse-dependent of a W-2 employee. HSAs are exempt from this restriction. Any individual—owner or employee—who is covered by a qualified High-Deductible Health Plan (HDHP) can open an HSA and receive contributions from the farm. HSA contributions offer a “triple” tax advantage (pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses). This makes HSAs a more attractive option than QSEHRA for many farm operations, as it includes the added incentive that the farm owners themselves can benefit from these tax advantages. We recommend creating a separate written guide on HSAs that includes similar content as the other health benefit options included in this project's written guide, or enhancing the existing guide by including content on HSAs.
- Cost-comparison tools. In addition, the PET participants expressed a desire for support in breaking this down to the financial details of actual dollars and cents – specifically, what will each benefit option actually cost them? They recommended developing a cost-comparison tool that could be paired with the written guides—ideally a downloadable spreadsheet pre-populated with formulas or links to reputable small-business calculators that let users plug in the number of employees, wage rates, and desired contribution levels, etc., and then see side-by-side annual and per-employee costs for each benefit option (bonuses, stipends, QSEHRAs, group health plans, SIMPLE IRAs, SEP IRAs, 401ks). This was outside the scope of this project, which aimed to highlight the legal aspects of these benefits, as well as our expertise in legal education.