Final report for LS23-387
Project Information
This project is a comprehensive analysis of the Southern livestock (i.e., cattle and dairy) farms’ labor demand, hiring options and practices, and overall farm business sustainability. Our in-depth analysis evaluates small and medium livestock farms’ labor hiring alternatives: the adequacy of family labor, the availability/reliability of domestic workers, and the relative need for foreign workers–especially contractual H-2A workers.
The role of H-2A foreign labor is assessed as whether it is: mere supplier of incremental/supplementary workers, optional/potential competitors of local farm work, or inevitable labor inputs. Based on farm needs, the assessment of the H-2A program patronage trends are analyzed under two scenarios: current program guidelines vs. proposed modifications (e.g., potential cost-effective program alternatives).
Empirical and anecdotal evidence establish that U.S. farms operate under a tightening labor market where the domestic workforce is unwilling to take on farm jobs. In recent years, farms increasingly relied on the H-2A program for sourcing contractual foreign workers. H-2A utilization trends indicate that crop farms accounted for 80-90 percent of H-2A workers hired since 2010. Conversely, livestock farms accounted for only 4-8 percent. This is partially attributed to the livestock production cycle: although many ranch operations are labor intensive, the industry’s need for year-round labor cannot be filled by seasonal, temporary H-2A work contracts.
Recently, the Farm Workforce Modernization Act (FWMA) was passed by the US Congress and is awaiting Senate’s approval. If enacted, FWMA will introduce H-2A program amendments, including lengthening workers’ initial stay to 3 years. This project will investigate if FWMA’s proposed amendments will encourage cattle-dairy farms to hire more H-2A workers. Moreover, we will validate whether livestock farms’ historically-low H-2A employment can be attributed to factors outside the H-2A program (e.g., labor market dynamics, structural, demographic, and behavioral conditions).
This project offers an important regional perspective in understanding the cattle-dairy farms’ labor hiring predicament. A Midwestern perspective is introduced in our project, through our academic and farmer collaborators from Wisconsin—home of 23 percent of all U.S. dairy farms and second-largest milk producer. A comparative analysis of Southern and Midwestern models will shed light on important regional differences in market dynamics, behavioral, economic, and social conditions. This variation is necessary to tease out the relative importance of each factor in determining reliance on H-2A labor.
We propose a comprehensive data collection on important facets of the labor conditions through four state-of-the-art techniques, implemented at both regions: Focus groups and discussions with farmers will establish the breadth and depth of labor-related concerns and parameters. Survey responses will provide quantitative support to this project’s assertions and conclusions. Choice experiments will reveal farm operators’ preferences for H-2A program attributes and quantity economically the most relevant factors. A whole livestock farm business analysis–using project data and additional operating information from participating farms–will be conducted under a simulation-and-optimization framework. Collectively, our methods will produce many policy sounding results that directly address sustainability goals of productivity, profitability, and farmers’ quality of life; while indirectly promoting the environmental stewardship component through labor-input substitution strategies.
- Overall labor demand and hiring models: To determine and understand farm labor hiring practices of Southern cattle-dairy farms, with particular attention on whether
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- Domestic Southern workers: the lack of participation of domestic workers in crop farms also applies to cattle and dairy operations in the South; and
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- Regional South versus Midwest: there are significant regional differences (South versus Midwest) in labor preferences (skilled versus unskilled labor profiles) and preferences for labor sources (relative dependence on family, domestic, and foreign workers).
- Role of H-2A labor in cattle-dairy operations: To understand cattle and dairy farmers’ historically low patronage of H-2A workers and clarify whether such trends are:
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- H-2A program-related: outside the seasonal employment issue, potential H-2A employers have reservations with such program stipulations on minimum wage limits (H-2A’s adverse effect wage rates) as well as housing and other required fringe benefits requirements for workers. In addition, we will investigate whether the program’s processing time may affect workers’ prompt availability to work and other cost/non-cost considerations; and
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- Regional H-2A demand and utilization patterns: if justifications are influenced by regional or industry differences.
- Effect of proposed FWMA amendments to H-2A labor utilization in cattle-dairy farms: To determine the comparative regional responses to proposed FWMA introducing H-2A program amendments. Specifically, we will determine if FWMA will generate potential increases in H-2A patronage among Southern cattle farmers (and compared to their Midwestern counterparts’ reaction to same program amendments).
Cooperators
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Research
CHOICE EXPERIMENTS
The second and final wave of Choice Experiments has been conducted via mail survey during the no-cost extension year. It may be recalled that the initial attempt to conduct a second in-person choice experiment with Dairy farmers was impeded by the following: some difficulty in coordinating with target farmer participants and the extended personal leave of one of the project’s investigators (primarily in-charge of the choice experiments). Responses to the second wave of Choice Experiments with beef cattle farmers were collected and responses we analyzed.
COMPLETION OF THESIS AND GRADUATE TECHNICAL PAPER
The requested one-year extension produced a second Master’s thesis that was defended in the latter part of the Fall 2025 semester. As of this writing a second graduate degree requirement, a technical paper required under the department’s Master of Agribusiness (MAB) program, is being completed and is expected to be finalized during the summer 2026 term. The MS thesis and MAB technical paper are both supplements and complements of each other. The MS thesis produces empirical results using secondary data obtained from various government agencies and analyzed using various econometric modeling techniques. The MAB technical paper, on the other hand, provides further support to the thesis’ major findings through primary data collected under this project’s survey method.
The following are among this project’s research outputs during the no-cost extension period:
Academic Journal Articles, M.S. Graduate Thesis, and Outreach/Research Publications
- Bhuiyan, N.I., Emmanuel, J., & Escalante, C.L. (Accepted). Are H-2A Workers Always More Expensive to Hire Than Domestic Labor. Choices, forthcoming.
- Escalante, C.L. R. Yewande, S. Ghimire, and E.G. Fonsah (2025). “Profit Margin Squeeze When H-2A Labor Becomes More Expensive.” Choices, Issue 40, Quarter 4.
- Gutierrez-Li, A., C.L. Escalante, and S. Neupane. (2025). “Where are the Workers? A Look at the Labor Needs of Livestock Farmers.” Choices. Issue 40, Quarter 4.
- Peña-Lévano, L., S. Burney, J. Salfer, J. Clark, L. Garcia Covarrubias and C. Escalante. (2025). "Automated Milking Systems: A Case Study of a U.S. Midwest Dairy Farm Decision-Making Process." Applied Economics Teaching Resources, Volume 7, Issue 4. DOI: https://doi.org/10.71162/aetr.652617.
- Zhang, J. and G. Melo. (2026). “Does Administration Mode Affect Survey Outcomes
- Among Hard-to-Reach Populations? An Intercept Survey
- with Beef Cattle Farmers.” Journal of Agricultural and Applied Economics, 1–20
- doi:10.1017/aae.2026.10040.
- Bhuiyan, N. (2025). “Structural, Industry, and Policy Determinants of U.S. Livestock Farms’ Reduced Dependence on H-2A Foreign Farm Workers.” Master’s Thesis submitted to the Department of Agricultural and Applied Economics, University of Georgia
- Gutierrez-Li, A. Breaking Down the Deportation Strategy: A Look at Policies, Costs, and Potential Consequences. Choices. February 2026.
- Gutierrez-Li, A. and J. Rubalcaba. The Effects of Ongoing Internal Immigration Enforcement on the U.S. Agricultural Labor Supply. Journal of the Agricultural and Applied Economics Association. September 2025.
- Gutierrez-Li, A. The Unseen Workforce: How Immigration Enforcement Could Shake the U.S. Economy Choices. July 2025.
- Gutierrez-Li, A., Melo, G., Burney, S., Escalante, C., & Acharya, S. R. (2024). Automatic Milking Systems: Labor-Savings Route or Costly Gamble for Dairy Farmers? Choices, Issue 39 Quarter 4(39)
- Gallardo, K., A. Gutiérrez-Li, J. Luckstead, R. M. Nayga Jr., B. Sallato, and W. Yang. “H-2A Workers’ Preferences for Job Attributes: Evidence from an Experiment.” Journal of the Agricultural and Applied Economics Association. September
Details on Research Results and Discussion:
- MS Thesis
Summary:
This thesis investigates the determinants of H-2A labor demand across U.S. agriculture, with a novel focus on livestock farms. While crop and nursery operations have rapidly adopted the H-2A program, livestock farms have shown limited participation. Using panel data from 2020 to 2023 across all 50 states, this research estimates sector-specific random effects models to explore structural, industry, and policy-related factors affecting H-2A labor intensity. Results reveal significant drivers in the crop sector such as crop composition, nursery wages, and national H-2A demand while livestock demand remains weakly associated with most variables. These results suggest potential mismatches in program design and labor needs. Robustness checks, including time fixed effects and pooled OLS comparisons, support the main findings. The study underscores the need for reforms like year-round H-2A eligibility under the Farm Workforce Modernization Act to enhance program utility for livestock farms and promote long-term labor sustainability in U.S. agriculture.
Results Discussion:
The model’s dependent variable, Livestock_H2A_Intensity, is measured as the ratio of certified H-2A livestock workers to total employment in the NAICS 112 livestock sector. On average, H-2A intensity in livestock production is notably lower than in crop production, with a mean of 0.157. However, the wide standard deviation (0.637) and maximum value (5.054) suggest that some states have substantial H-2A reliance, while others report no usage.
Sectoral composition is represented by variables derived from the value of farm production and cash receipts. Animal_Product_Share, the share of total farm output attributable to animal and animal product production has a mean of 0.42, indicating that livestock is a dominant component in many states. Within animal production, Dairy_Share (mean = 0.226) and Meat_Share (mean = 0.382) reflect the relative importance of dairy and meat products, with high variability across regions. Some states are heavily specialized, as shown by maximum shares exceeding 0.8 for dairy and 0.9 for meat.
Employment variables constructed from BLS NAICS data provide insight into labor distribution within the agricultural sector. Livestock_Labor_Share, defined as NAICS 112 employment over total agricultural employment (NAICS 11), averages 30.3%. Sub-sector measures such as Cattle_Labor_Share and Dairy_Labor_Share show diverse employment patterns, with some states exhibiting significant cattle or dairy-specific labor intensity.
Structural labor market indicators Ag_Goods_Share and Ag_Total_Share are included to contextualize the role of agriculture in the broader economy. As in the crop model, agriculture typically contributes modestly to state employment, with Ag_Total_Share averaging just 1%.
Relative wage metrics offer a picture of competitiveness in the livestock labor market. The Livestock_Wage_Relative, calculated as the ratio of wages in the NAICS 112 sector to the AEWR, has a mean of 1.472, suggesting that wages in livestock often exceed the prevailing H-2A wage threshold. Cattle_Wage_Relative is somewhat lower (mean = 1.274), but still consistently above 1 in most cases. These ratios indicate that many livestock employers pay above the federally mandated AEWR, which may reduce their incentive to hire H-2A workers.
The AEWR itself is included in three relative forms: AEWR_All_Sectors, AEWR_Goods_Sectors and AEWR_Ag_Sector to control for the variation in wage floors across different segments of the economy. The AEWR relative to agriculture (AEWR_Ag_Sector) shows the highest average at 0.686, underscoring its stronger influence within agricultural labor markets.
Finally, National_H2A_Demand, a macro-level control defined as total certified H-2A workers over national agricultural employment, has a mean of 0.342. This variable reflects the broader labor market environment in which state-level H-2A hiring decisions are made and captures annual changes in nationwide demand pressures.
Livestock Model’s Regression Results
The livestock sector model examines the determinants of certified H-2A labor intensity across U.S. states. The model includes 14 explanatory variables and 4 regional dummies. The R-squared value is 0.3655 and the adjusted R-squared is 0.3024, indicating moderate explanatory power. The model’s F-statistic of 104.28 confirms its overall statistical significance.
Most explanatory variables in the model do not exhibit statistically significant relationships with livestock H-2A labor intensity at conventional levels. Among the structural variables, AEWR_All_Sectors, is marginally significant at the 10% level, with a positive coefficient of 2.3613 (p ≈ 0.05). AEWR_Goods_Sectors, has a negative coefficient of –3.5136 and is also marginally significant (p ≈ 0.07).
The variable National_H2A_Demand, which reflects the national ratio of certified H-2A workers to total agricultural employment (NAICS 11), has a positive coefficient of 1.0545, though it is not statistically significant at the 10% level (p = 0.1148). None of the sectoral composition variables show significant effects on livestock H-2A intensity.
Likewise, labor structure indicators such as Ag_Goods_Share, Ag_Total_Share do not exhibit statistically meaningful relationships. Measures of sub-sector specialization within livestock, including Livestock_Wage_Relative and Cattle_Wage_Relative, also yield insignificant coefficients. Regional dummy variables do not show significant associations with H-2A labor intensity in the livestock sector either.
In summary, while the livestock model is statistically valid overall, few individual predictors reach conventional significance levels. The marginal significance of AEWR_All_Sectors and AEWR_Goods_Sectors suggests that broader structural employment conditions may play a modest role in shaping H-2A labor usage in the livestock sector, but further evidence is needed to confirm these effects.
- Choice Experiment Results (Base)
Summary:
We conducted an intercept survey with beef cattle farmers using paper and electronic modes to examine administration mode effects. Three outcomes were measured: (1) preferences for H-2A reforms using a discrete choice experiment, (2) responses to closed-ended questions regarding labor, and (3) survey process measures such as completion time and respondent experiences. Results show that closed-ended responses and utility scales were comparable across modes, while mean preference estimates differed. Respondents in the paper mode spent more time, paid closer attention, and reported higher satisfaction. We recommend the paper mode for complex instruments that require greater participant engagement.
Beef cattle farmers’ labor dynamics and preferences for H-2A reforms
We find that beef cattle farmers have substantial demand for hired labor to perform both traditional on-farm agricultural tasks and a variety of off-farm activities. Overall, these farmers report confidence in future profitability and plans for production expansion. However, nearly half have already experienced labor difficulties, which may intensify in the future. This highlights a potential role for the H-2A program in alleviating labor shortages in the livestock sector.
By comparing beef cattle farmers’ labor demand and hiring practices with current H-2A regulations, we identify two major misalignments that may limit program adoption. First, most beef cattle operations rely on well-scheduled, year-round labor, which is incompatible with the H-2A program’s seasonal employment requirement. Second, the required AEWR is considerably higher than the wages typically paid by beef cattle farmers, making participation financially challenging.
Results from the DCE analysis show that wage levels and the flexibility to assign workers to off farm tasks are consistently valued by farmers. This finding aligns with prior studies showing that farmers prioritize cost and production practice considerations in farm operations (Mugnier, Husson, and Cournut, 2021). In contrast, attributes reflecting other proposed reforms, such as allowing year-round employment and establishing a portable H-2A program, were not consistently valued. This limited support may reflect information gaps, as many beef cattle farmers have limited familiarity with the H-2A program and are hesitant to rely on it for year-round labor in core production activities that are vulnerable to disruption. In addition, the regulatory complexity and administrative burden associated with year-round employment may be perceived as higher compliance costs and risks, thereby deterring participation among generally risk-averse farmers (Zhang and Melo, 2025).
These findings yield several policy implications for improving H-2A program accessibility for beef cattle farmers. First, our results support efforts to relax restrictions on year-round employment and to allow greater flexibility in assigning workers to off-farm tasks, which would better align the program with livestock production practices. Second, while the high wage requirement remains a major barrier to adoption, adjustments to the AEWR calculation or policies that limit its growth could improve alignment with industry conditions. Finally, communication and outreach related to the H-2A program can be strengthened across agricultural sectors to improve farmers’ understanding of program rules and ongoing reform efforts, thereby fostering broader support for policy initiatives.
- Choice Experiment Findings (Extensions)
Summary:
Survey evidence shows that U.S. beef cattle farmers’ labor demand does not align with current H-2A rules. Major barriers include the seasonal and full-time employment requirements, high wage mandate, and lengthy applications. Program reforms addressing these barriers could improve H-2A utilization and help mitigate agricultural labor shortage.
Discussion of Results:
As expected, livestock operations exhibit labor profiles fundamentally differing from those of crop farms, being smaller in scale and requiring more year-round rather than seasonal labor (Bent 2011; Hertz and Zahniser 2013; Jafri et al. 2024). Moreover, notable differences also emerge within the livestock sector between beef cattle and dairy operations.
Dairy farms tend to employ a larger hired labor force. While 26% of beef cattle farmers reported not hiring any labor, this was true for only 9% of dairy farmers. A majority of beef cattle farms (65%) hired between one and five workers, while dairy farms were more likely to hire larger teams; 53% employed more than five workers, compared to just 9% of beef cattle farms. This likely reflects structural differences in herd size, as far fewer (6%) dairy farms have a herd size smaller than 100 compared to 56% of the beef cattle farms (USDA NASS, 2024).
Hired hours also indicate more intensive labor demands in dairy farms, whereas beef cattle farms tend to hire with greater flexibly. Sixty-two percent of dairy farms employed workers for more than 40 hours per week, compared to only 31% of beef cattle farms. This pattern aligns with previous findings that dairy farming typically requires more continuous and time-sensitive labor, often involving longer work schedules than other types of livestock operations (Charlton and Taylor 2016; Charlton and Kostandini 2021; Jafri et al. 2024).
Wages paid also varied considerably across farm types, though the majority of both beef cattle and dairy farms reported paying below the H-2A required AEWR. At the time of the survey, the AEWR in Texas was $15.55 per hour. Two-thirds (67%) of beef cattle farms paid their workers $13 per hour or less, compared to only 29% of dairy farms in that wage bracket. Nearly half (45%) of dairy farms paid between $13.10 and $16.00 per hour, and 26% paid more than $16 per hour. On the other hand, only 11% of beef farms reported paying wages above $16 per hour.
Regarding labor scheduling, well-scheduled labor that typically lasts year-round was reported as the dominant need by both beef cattle (82%) and dairy (65%) farms. However, a substantial portion of both beef cattle (53%) and dairy (62%) farmers also reported demand for emergency or temporary labor, suggesting some alignment with H-2A eligibility under specific conditions.
Regarding the nature of tasks, the majority of hired labor was agricultural (on-farm tasks directly related to production) in both sectors, though this was more pronounced among dairy farms (88%) than beef cattle farms (72%). A larger share of beef cattle farms (28%) reported employing labor for non-agricultural tasks, such as local transportation or processing.
Overall, dairy farms tended to have larger labor forces, with longer hours, and paid at higher wages than beef cattle farms. In contrast, beef cattle farms typically had smaller labor demands, more part-time workers (under 40 hours per week), and lower wage offerings. While both groups fall within the scope of agricultural employment and have some labor needs that align with the seasonal or temporary criteria of the H-2A program, the majority of their labor demand centers on well-scheduled, year-round work that do not conform with and hence, could not be accommodated under the current current program rules.
Livestock Producers’ Perceptions and Barriers to Adoption
Concerning labor demand characteristics, we observe notable differences between responses from beef cattle and dairy farmers. Expectations about long-term profitability varied markedly between the two groups. A clear majority (66%) of beef cattle farmers expressed confidence in their farm’s profitability over the next ten years, compared to only 26% of dairy farmers. This disparity likely reflects structural differences and divergent prevailing market conditions. In recent years, beef producers have benefited from tight cattle supplies and strong demand, which have contributed to favorable price conditions and improved margins (NCBA, 2023; USDA–NASS, 2025). In contrast, dairy farmers continue to face persistent operating and marketing challenges, including high feed and labor costs, volatile milk prices, and increasing consolidation that places pressure on small and mid-sized operations (McDonald et al. 2020; Jafri et al. 2024).
Regarding past labor experiences, both groups reported widespread difficulties. When asked about labor issues encountered over the past five years, the most common concern cited was difficulty hiring domestic workers, reported by 48% of beef cattle farmers and 56% of dairy farmers. Challenges related to training and supervision were also common, noted by 46% of beef cattle farmers and 38% of dairy farmers. Retention problems were further highlighted by 31% of beef cattle farmers and 41% of dairy farmers. Only a small share of 19% beef cattle farmers and 29% dairy farmers reported experiencing no labor challenges.
Despite these challenges, stated likelihood of adopting the current H-2A program differed significantly across farm types. Only 5% of dairy farmers indicated they were likely to adopt, compared to 41% of beef cattle farmers. This divergence may reflect differences in labor demand characteristics: beef cattle farms often involve more seasonal tasks that better align with the program’s current eligibility requirements. In contrast, dairy operations require stable, year-round labor that is generally incompatible with H-2A regulations.
Among respondents who reported being unlikely or unsure about adopting the current H-2A program, perceived barriers varied by farm type. For dairy producers, the most frequently cited barrier (85%) was the requirement for seasonal employment, which conflicts with the sector’s year-round labor needs. Beef cattle producers, by contrast, reported a broader set of concerns, including the high wage requirement (45%), the lengthy application time (28%), and the ineligibility of non-agricultural labor tasks under H-2A (21%).
Interestingly, despite the low current adoption, both groups expressed strong interest in a reformed version of the program. A large majority of dairy producers (85%) and beef cattle producers (78%) indicated that they would benefit from a more flexible version of the H-2A program that better aligns with the labor needs of the livestock sector.
Livestock Farmers’ Stated Likelihood of H-2A Adoption
As expected, dairy farmers are significantly less likely than beef cattle farmers to consider adoption (p<0.05), which reflects the inherent incompatibility between existing H-2A program’s seasonal requirements and dairy farms’ year-round labor needs. Smaller farms also exhibit significantly lower likelihood of adoption (p<0.05), which could indicate these farms’ limited financial and business capacity to afford the more expensive H-2A labor hiring alternative and the absence of economies of scale needed to manage the program’s complexity.
Younger producers are significantly more likely to report willingness to adopt the program (p<0.01). However, due to a violation of the proportional odds assumption for this variable, the estimated effect may not be consistent across all response categories. Confidence in long-term farm profitability also emerges as a strong positive predictor of H-2A adoption likelihood (p<0.01), reinforcing previous findings that economic optimism enhances producers’ willingness to invest in labor expansion or regulatory compliance (Lin 1991; Foster and Rosenzweig 2010). Holding a college degree, however, has no statistically significant effect.
Among labor demand characteristic variables, producers who reported difficulty in finding workers are more likely to consider H-2A participation (p<0.10). However, other labor demand characteristics, such as hiring practices and labor scheduling, are not significant. One possible explanation is that impending shortages of available, willing and motivated domestic farm workers, along with broader farm characteristics and farmer demographics, rather than specific employment structures, serve as the primary drivers of interest in the H-2A program.
Discussion
Our findings confirm that livestock operations, compared to crop production, exhibit distinct labor profiles characterized by smaller workforce sizes and a strong reliance on year-round labor (USDA–ERS, 2025). Within the livestock sector, dairy farms tend to have larger labor forces, longer hours, and higher wages, while beef cattle farms report more flexible labor patterns. Across both groups, producers reported substantial labor challenges, yet most indicated that they were either unlikely or unsure about adopting the current H-2A program, consistent with national H-2A statistics (USDA, 2024).
We find that several characteristics are associated with producers’ stated likelihood of adoption. Beef cattle farmers whose operations involve more seasonal labor needs may have a higher stated likelihood of adopting the program than dairy farmers. Producers with larger herd sizes, confident in long-term profitability, and experienced difficulty hiring domestic labor also showed higher likelihood of adoption.
While the H-2A program’s core objective of facilitating agriculture employers’ access to foreign labor when domestic labor is unavailable remains relevant to livestock producers, our results reveal major barriers to adoption and suggest the need for policy reforms to address them.
- Expounding on Survey Results
Summary:
This project’s multi-state survey of livestock farmers reveals their foreign labor demand, production costs and workforce plans differentiated from other industries. Even if dependence on H-2A labor is currently limited, H-2A is regarded as a standby labor source given farmers’ recommendations for program policy modifications that could increase their H-2A patronage.
Reliance on H-2A Labor
Livestock producers do not generally employ large numbers of H-2A workers, unlike specialty crop farmers. Those who do tend to mostly hire them directly, as only a few rely on external services like those of independent contractors, employer associations or the USDA. This pattern is not surprising, by virtue of the rules associated with the H-2A program. Under the government regulations, agricultural employers can only hire H-2A workers for performing seasonal tasks. Such provision does not negatively affect fruit and vegetable growers significantly, as they need most of their labor during harvest season. However, livestock production takes place every single day, leaving animal sector farmers out of H-2A labor for the most important production tasks. Nevertheless, farmers can still hire H-2A workers for seasonal work.
The few livestock farmers employing H-2A workers generally feel that the cost of accessing this kind of labor is substantial. Almost two thirds indicated that H-2A costs were either moderately burdensome (26.47%) or very burdensome (38.24%), while only 17.65% said they did not find them burdensome at all. This pattern aligns with cost perception of farmers in most industries, that is, that while the H-2A program effectively gives them access to a reliable workforce, the costs are high and growing, making the program prohibitive to most small and medium-size producers.
The earlier trends established (the low use of the H-2A program by livestock producers and the burdensome costs associated with it) are aspects that farmers would like the program to address. Our survey asked respondents to select among current H-2A provisions that they would like legislators to modify.
Among the program’s existing guidelines, the top provision that farmers would like to be prioritized in legislative amendments is for the government to set up subsidies to partially help farm employers in financing building and maintaining workers' living facilities required under the program. Under the current H-2A rules, employers must provide workers with transportation to and from their countries of origin to the U.S., as well as inside the country to and from the worksite and the living units. Moreover, employers shall furnish workers with housing and afford all the costs associated with this mandate.
Consistent with the H-2A program’s current incompatibility with the nature of the labor demand of livestock operations, our survey respondents’ choice for the second most urgent program modification was to create a yearly quota of H-2A workers just for non-seasonal sectors like dairy. Notably, this need was considered and addressed in the more recent versions of the Farm Workforce Modernization Act, which, despite gaining support at the Congress deliberations, eventually failed to clear the Senate (Congress.gov, 2021).
Contrary to expectations, only 6.5% of respondents prioritized the need to alter the determination process for H-2A workers' wages. This indicates that when labor cost considerations are weighed by farmers, there are more employers that consider housing costs as the more burdensome component of the H-2A remuneration package compared to the actual H-2A wage bill governed by the adverse effect wage rate (AEWR) provision.
Interestingly, the least selected change was to legalize the immigration status of the current undocumented farm labor force. Farm producers apparently have a clear understanding of the real drivers of the farm labor sourcing problem. A cursory view of the issue would quickly dismiss the issue as instigated primarily by racial or ethnicity considerations given the farm sector’s apparent primary dependence on foreign workers, especially those of Hispanic ethnicity. Reality, however, presents the farm labor hiring predicament as not necessarily solely racially or ethnicity motivated, but rather an immigration identity issue. Potential farm workers among immigrants would only commit to provide reliable, productive farm labor services if they are either undocumented or bounded by a labor contract, such as H-2A workers (Luo and Escalante, 2017). When foreign residents (immigrants) successfully gain immigration status that provide them with flexibility to work anywhere in the country, they are more likely to choose better jobs outside the farm sector with more competitive salaries and wages, better working conditions (versus potential exposure to work hazards and health risks in farm work), and available fringe benefits (Escalante et al., 2016; Luo and Escalante, 2017; Escalante et al., 2019; Williams and Escalante, 2019).
General Labor Demand
While livestock farmers are hiring relatively fewer H-2A workers (likely a result of the program's rules that exclude non-seasonal activities), labor remains to be an important production input in their operations. Around 15% of the respondents indicated hiring documented workers (citizens or legal immigrants) and almost 14% reported employing undocumented individuals. The majority (85%) of the respondents, however, do not employ foreign workers of any kind. This trend indicates either the adequacy of family labor inputs among small businesses or the less labor-intensive nature of production operations that can be sufficiently manned by available American-born workers on their farms.
In addition to asking about their current situation (at the time of the survey), we asked farmers about their plans to hire foreign workers in the future. Most respondents (58.62%) plan to maintain the same number of workers and domestic-foreign manpower complement. This may suggest that the respondent farms intend to keep their operations at status quo levels and are not contemplating on future business expansions in the shorter-term horizon. Alternatively, they may already have enough American-born workers in their payroll or might be contemplating on the possibility of investing in labor-saving technologies. It is also worth nothing that close to 28% of producers indicated their indecision in hiring more foreign workers in the future, which could be a sign of some pervading concerns about uncertainty of business growth due to volatile economic episodes and their lack of confidence in their ability to pursue growth plans in the future.
Labor Costs
Wages are generally a major expense for most business owners. We asked respondents to provide the average wage paid to three types of workers. Of those hiring U.S. workers, more than 50% pay more than $13 dollars an hour, with more than 11% indicating paying more than $19 an hour. In the case of TN visa workers,[1] while some livestock producers hire this kind of foreign labor, most respondents (about 88%) do not. The same holds for H-2A workers who are not usually relied much on in livestock farms as domestic workers. As for H-2A workers who are actually hired by these farms, they are generally paid according to rates mandated under the program (i.e. at the AEWR levels set by the government at the state level, which vary based on the tasks performed by individuals).
Labor costs represent less than 5% of total costs for a little bit less than half of the sample (46.86%). This suggests that livestock producers incur other expenses (such as expenditures on machinery, pesticides, and the animal themselves) that exceed their wage bill. Only 4.26% of respondents indicated that labor costs account for 26% or more of their total costs, which reflects the industry’s peculiar operating structure that is less labor dependent than other agricultural sectors.
In terms of labor costs, specifically hourly wages, farmers’ responses are mixed regarding their perceptions on wage trends in the past two years. While 41.39% of respondents asserted that wages have increased in this period, an almost similar proportion indicated no change (40.52%). Meanwhile, less than 1% have seen a decline in wages in the recent past. Such discrepancies in wage trend perceptions may be attributed to the different labor needs across operations based on their size. Alternatively, labor availability varies across regions in the U.S. as affected by several factors, which could result in some areas having to pay less for workers while others might be compelled to compete for labor in areas that offer more lucrative alternative employment alternatives in non-farm industries (like construction) or competing farm operations (such as specialty crop farms), thus forcing employers to make higher wage offers as they compete to recruit and retain workers.
[1] TN visas allow Mexican and Canadian citizens to work temporarily in the United States. The program grants highly skilled professionals with college degrees from around 60 occupations permission to work indefinitely in the U.S. if they have a job (offer) from an American employer (Payan and Rodriguez-Sanchez, 2023).
Education
Participation Summary
As a recap of this study’s major activities in gathering primary evidence to support our project findings, the following were undertaken. In May 2024, the Survey Research Center (SRC) at University of Wisconsin-River Falls completed data collection for a large-scale survey of cattle and dairy producers in Wisconsin, Georgia, and North Carolina. The survey was distributed through mail, email, and farm visits. Distribution through mail started in January 2024. The SRC mailed the survey to a randomly selected 1,880 farmers and received a total of 544 completed surveys, for a response rate of about 29%. The cleaned and compiled data was received by the project team in July 2024.
The choice experiments were conducted in Texas with the first wave conducted as an in-person choice data experiment data collection held during the regular meeting of the cattle and dairy farmers’ association. A second wave of choice experiments conducted by mail was necessary as the in-person data collection did not produce many observations.
Education Summary:
- During the grant’s no-cost extension period, two graduate students (one each in UGA and TAMU, respectively) conducted separate research projects directly related to the project. The UGA student utilized secondary government datasets and relied on the project’s survey data for primary evidence. The TAMU graduate student helped collect and analyze the choice experiment data.
- On June 6, 2025, a case study based on this project’s research was awarded World Best Case by the International Food and Agribusiness Management Association (IFAMA) in their Global Conference in Ribeirao Preto, Brazil. The case study, “Automated Milking Systems: A Challenge and Opportunity for U.S. Midwest Dairy Farmers”, examines the Schmidt family’s decision at Pioneer Farm in the U.S. Midwest: whether or not to adopt Automated Milking Systems (AMS) – milking robots that can autonomously milk dairy cows. Our SSARE project’s findings and data on farm labor contributed in developing the labor angle of the case study. In summary, the case study explains the conundrum faced by farmers: “AMS can potentially increase operational efficiency, reduce labor reliance, and improve milk quality. However, installing AMS requires high upfront costs, maintenance expenses, and adjustments to farm management practices, making it a challenging and crucial decision for small and mid-sized dairy operations".
- This SSARE project’s data and materials have continued to be used as reliable supplementary teaching materials in classroom instruction activities in the University of Georgia, specifically in one of the core classes of the university’s Master of Agribusiness (MAB) program.
Educational & Outreach Activities
Project applications featured in academic courses
Industry reports on crops alluding to issues in the livestock sector
Participation summary:
The team produced several outreach bulletins and reports that disseminated direct and indirect issues related to the project. These outreach publications include:
- Gutierrez-Li, A. and C.L. Escalante. “Understanding the Labor Needs of Livestock Producers.” Farm Management/Finance Mondays. May 5, 2025. Available at https://southernagtoday.org/2025/05/05/understanding-the-labor-needs-of-livestock-producers/.
- L. Escalante, N. Bhuiyan, and J. Emmanuel. “Understanding the H-2A Affordability Issue.” Farm Management/Finance Mondays. Southern Ag Today. September 22, 2025. Available at https://southernagtoday.org/2025/09/22/understanding-the-h-2a-labor-affordability-issue/
- Escalante, C.L., A. Gutierrez-Li, and N.I. Bhuiyan. “Relating Crop and Livestock H-2A Labor Decisions to AEWR and Sectoral Wage Gaps.” Farm Management/Finance Mondays. April 28, 2025. Available at https://southernagtoday.org/2025/04/28/relating-crop-and-livestock-h-2a-labor-decisions-to-aewr-and-sectoral-wage-gaps/.
- L. Escalante, J. Emmanuel, and B. Gaire. “H-2A Wage Violations Against Workers Hired by Farm Labor.” Farm Management/Finance Mondays. December 16, 2024. Available at https://southernagtoday.org/2024/12/16/h-2a-wage-violations-against-workers-hired-by-farm-labor-contractors/.
- L. Escalante. “Hiring H-2A Workers through Farm Labor Contracts.” Southern Ag Today. Farm Management/Finance Wednesdays. July 24, 2024. Available at https://southernagtoday.org/2024/07/24/hiring-h-2a-workers-through-farm-labor-contracts/.
- Gutierrez-Li and C.L. Escalante. “The Costs and Benefits of Mechanization: A Look at the Dairy Sector.” Southern Ag Today. Farm Management/Finance Wednesdays. April 17, 2024. Available at https://southernagtoday.org/2024/04/17/the-costs-and-benefits-of-mechanization-a-look-at-the-dairy-sector/
- L. Escalante, A. Li-Gutierrez, and S. Acharya. “Reforming the H-2A Guest Farmworker Visa Program: Sectoral Coverage Expansion and Workers’ Path to Permanent Residency.” Southern Ag Today. Farm Management/Finance Wednesdays. March 6, 2024. Available at https://southernagtoday.org/ 2024/03/06/reforming-the-h-2a-guest-farmworker-visa-program-sectoral-coverage-expansion-and-workers-path-to-permanent-residency/
- Gutierrez-Li, A. “The H-2B Visa Program and the Food Sector.” Southern Ag Today, September 29, 2025. Available at https://southernagtoday.org/2025/09/29/the-h-2b-visa-program-and-the-food-sector/
- Gutierrez-Li, A. “What is the TN Visa Program?” Southern Ag Today, February 14, 2024. Available at https://southernagtoday.org/2024/02/14/what-is-the-tn-visa-program/.
- Gutierrez-Li, A. and J. Dorfman. The State of Agriculture in North Carolina: Lessons from the 2022 Census. NC State Economist. 2024, Issue 3
- Gutierrez-Li, A. Feeding America: How Immigrants Sustain US Agriculture. Center for the U.S. and Mexico. Houston: Rice University’s Baker Institute for Public Policy. July 19, 2024
The project continues to draw significant attention and focus from the media. Discussions related to the project’s main policy issue and findings have been in several popular press articles featuring interviews with a project team member. Outreach presentations were also made at farmers’ workshops.
Third-Party Press Articles (Interview quotes, research citations)
- Grinspan, L. Trump administration slashes Georgia migrant farmworker H-2A wages. Ledger-Enquirer. December 16, 2025. Available at https://www.ledger-enquirer.com/news/article313713127.html
- James, T. “Rising H-2A Wage Rates Pressure Farm Labor Costs.” RFD TV. September 24, 2025. Available at https://www.rfdtv.com/rising-h-2a-wage-rates-pressure-farm-labor-costs.
- Blau, M. “Employers Have Exploited and Abused H-2A Farmworkers for Years. It Doesn’t Have to be That Way.” ProPublica, RadioFree. September 16, 2025. Available at https://www.msn.com/en-us/news/us/employers-have-exploited-and-abused-h-2a-farmworkers-for-years-it-doesn-t-have-to-be-that-way/ar-AA1ME1a7.
- Dairy News Today. “Cesar Escalante: Pioneering Agricultural Economist.” Dairy News Today. March 27, 2025. Available at https://dairynews.today/milkypedia/ person/cesar_escalante_9850299/.
- Lannigan, L. “Uncertainty grows among South Georgia communities as Trump administration cracks down on illegal immigration.” Albany Herald. February 21, 2025. Available at https://albanyherald.com/news/uncertainty-grows-among-south-georgia-communities-as-trump-administration-cracks-down-on-illegal-immigration/.
- Fletcher, C. “Migrant workers vital to Georgia agriculture.” Albany Herald. October 16, 2024. Available at https://albanyherald.com/news/local/business/migrant-workers-vital-to-georgia-agriculture/
OUTREACH
Outreach Presentations
- National webinar “Going for the Win: Drivers of Innovation in the Dairy Industry.” Co-organized and co-implemented by C.L. Escalante (U of Georgia) with The Council on Food, Agricultural & Resource Economics (C-FARE) on September 5, 2025. Project-affiliated speakers: Luis Pena-Levano (UC Davis), Shaheer Burney (UW-River Falls) and A. Gutierrez-Li (NC State).
- Featured Journal Article Presentation. Annual Meeting of the Association of Farm Managers and Rural Appraisers (ASFMRA), Clearwater, FL. C.L. Escalante, S. Ghimire, and S.R. Acharya. “Recent H-2A Wage Hikes’ Divergent Effects on Workers’ Welfare and Farm Business Viability.” November 11, 2025.
- Gutierrez-Li, A. (2026). Modern Weed Management. SAN Grow. February 2026 (webinar), Presentation title: Agricultural Labor
- Gutierrez-Li, A. (2025). Going for the Win: Drivers of Innovation in the Dairy Industry. September 2025 (webinar), Presentation title: Labor and Agriculture
- Gutierrez-Li, A. (2025). Perspectives of Agricultural Development in Latin America. Agricultural and Applied Economic Association (AAEA). August 2025 (virtual), Presentation title: Labor and Agriculture
- Gutierrez-Li, A. (2025). American Dairy Science Association. May 2025. Invited Speaker (Chicago, IL), Presentation title: Agricultural Labor
- Gutierrez-Li, A. (2025). NC Extension Annual Conference. January 2025 (Greensboro, NC), Presentation title: Agricultural Labor Updates
- Gutierrez-Li, A. (2024). Farm Labor Conference. Michigan State University. November 2024 (East Lansing, MI), Presentation title: Extreme Weather and Agricultural Labor
- Gutierrez-Li, A. (2024). October 2024 (Raleigh, NC), Presentation title: Agricultural Labor Updates
- Gutierrez-Li, A. USDA and Farm Foundation. (2024). Agricultural Labor Conference. September 2024 (Santa Cruz, CA), Presentation title: Extreme Weather and Agricultural Labor
- Gutierrez-Li, A. (2024). Examination of Agricultural Labor Policy Options. Organized Symposium. Agricultural and Applied Economics Association Annual Meeting. July 2024 (New Orleans, LA). Presentation title: Agricultural Labor
- Gutierrez-Li, A. (2024). Catalyze NC: Unlocking Tomorrow’s Workforce with Innovation and Immigration. Invited Speaker. Immigration Hub. June 2024 (Raleigh, NC). Presentation title: Immigrants and Agriculture in NC
Participation Summary
The outreach activities of this project were patronized by producers, industry representatives, academic researchers, and other interest groups. The September 2025 national webinar that drew about 250 online attendees had this mix in the audience. The November 2025 Florida presentation for the Association of Farm Managers and Rural Appraisers had an audience of about 30, majority of whom were affiliated with the government and academic institutions.
Participation records for the other outreach activities include 30 producers in the SAN Grow webinar (item #3), 50 producers in the dairy industry webinar (item #4), 30 academic and government researchers in the virtual AAEA conference (item #5), 500 industry representatives and producers at the conference of the American Dairy Science Association (item #6), 50 producers and extension personnel at the NC Extension Annual conference (item #7), 100 academics and producers at the Farm Labor conference at Michigan State University (item #8), 50 producers at the Connect2Grow meeting (item #9), 120 academics, industry, and producers at the USDA and Farm Foundation’s Agricultural Labor Conference (item #10), 25 academic and government researchers at the annual meeting of the AAEA (item #11), and 35 academics and industry audience at the Immigration Hub meeting in NC (item #12).
Educational and Outreach Description
The project’s educational and outreach activities were conducted at the following levels:
- international (such as the case study entry at the 2025 IFAMA conference in Brazil),
- national (C-FARE webinar, ASFMRA industry and academic conference, AAEA national conference, USDA and Farm Foundation Agricultural Labor Conference, American Dairy Science Association (ADSA) annual meeting, among others)
- local (community, university, and state-level) extension workshops, meetings and conferences.
The project’s audiences include a wide spectrum of interest groups that include producers, industry representatives, academic researchers, and government policy analysts, among others.
Specifically, the C-FARE national webinar featured three of the project’s investigators who discussed the project’s major findings and drew significant interest from the audience. In the annual meetings of such prestigious academic and professional associations as the ASFMRA, AAEA, ADSA, and USDA-Farm Foundation, the project was very well represented with invited presentations.
Learning Outcomes
Choice experiment data reveal that despite experiencing labor difficulties and showing strong interest in a guest worker program, most proposed reforms in Congress—such as shortening the process, allowing worker mobility, and permitting year-round jobs—are not of interest to beef cattle farmers and do not influence their likelihood of adoption. (they don’t like to pay for it)
Analyses of survey responses indicate that the low use of the H-2A program by livestock producers and the burdensome costs associated with it, are aspects that farmers would like to see changed. Our survey asked respondents to select the top current rule of H-2A visas that they would like to be modified. The number one update farmers would like to see is for the government to provide support to build and maintain workers' living facilities. Under the current H-2A rules, employers have to provide workers with transportation to and from their countries of origin to the U.S., as well as inside the country to and from the worksite and the living units. Furthermore, employers have to provide workers with housing, and afford all the costs associated with this mandate.
Not surprisingly, the second modification that was chosen the most was to create a yearly quota of H-2A workers just for non-seasonal sectors like dairy. This last idea was included in the most recent versions of the Farm Workforce Modernization Act, a bill that has been introduced to Congress on numerous occasions but has failed to clear the Senate.
Perhaps surprisingly, only 6.5% of respondents indicated that modifying the rules related to the determination of H-2A workers' wages was their most supported proposed change. This suggests that housing costs could be more burdensome than the wage bill for some farmers.
Majority of beef cattle farmers have well-scheduled, routine work typically lasting year-round, as is the case in other livestock industries such as dairy, which does not align well with H-2A’s requirement of temporary or seasonal employment. This mismatch likely disqualifies a large portion of beef cattle farmers from participating.
A less widely discussed requirement of the current H-2A program is that employment must be full-time where workers must work at least 35 hours per week during the certification period (U.S. Department of Labor, 2024). This contrasts with flexible hiring practices in many beef cattle farms where 66% of farmers employ part-time workers for fewer than 40 hours per week. This could be another concern for livestock work’s qualification under the H-2A program’s guidelines and thus, may potentially constitute another major barrier for utilization.
The cost of the H-2A program poses financial challenges. At the time of the survey, the national H-2A AEWR was about $16 per hour, and employers are also responsible for covering housing, transportation, and meals. In our sample, only 13% of beef cattle farmers reported paying more than $16 per hour. When legal and application fees are considered, estimated at roughly $100 per worker, the total cost of employing an H-2A worker may exceed what most beef cattle farmers can afford.
The lengthy application process of roughly 75 days acts as a further deterrent. H-2A applications must pass approval from both the U.S. Department of Labor and U.S. Citizenship and Immigration Services, where delays may interfere with farm operational schedules and complicate labor planning.
Project Outcomes
Thesis and Technical Paper Analyses Outcomes:
Our project’s results contribute to the growing literature on agricultural labor markets by offering a comparative, sector-specific analysis of the determinants of H-2A labor demand in U.S. crop and livestock production systems. Using state-level panel data from 2020 to 2023, the analysis reveals significant differences in how structural, economic, and labor-related variables influence reliance on H-2A labor across the two sectors.
The findings confirm that crop farms particularly those specializing in labor-intensive activities like vegetable, melon, and nursery production are significantly more reliant on the H-2A program. Key determinants such as sectoral production structures, relative wage competitiveness, and national trends in H-2A hiring were found to significantly influence H-2A labor intensity in the crop model. In contrast, the livestock sector displayed a weaker empirical relationship with the tested variables, reflecting more complex labor requirements and deeper structural barriers to H- 2A adoption.
These results highlight the inadequacy of current labor policy frameworks in addressing the year-round workforce needs of livestock farms. While the H-2A program has proven critical in filling seasonal labor shortages in crop agriculture, its seasonal and short-term design remains misaligned with the operational realities of livestock production, where continuity and skill retention are vital. Legislative proposals such as those outlined in the Farm Workforce Modernization Act (FWMA) offer promising solutions particularly the provision for year-round visas and longer employment terms, but political deadlock has impeded meaningful reform.
Ultimately, this research underscores the urgent need for targeted policy adaptations that reflect the heterogeneity of labor demand within U.S. agriculture. As the domestic labor supply to decline and immigration policies remain restrictive, the sustainability of U.S. agriculture particularly livestock operations may increasingly depend on a more flexible and inclusive guestworker framework. Future research may examine how growth in the value of farm production (VFP) influences H-2A labor demand. While this study focuses on sectoral production shares to reflect structural composition, using VFP growth or level measures could reveal whether rising farm revenues rather than shifts in production mix drive increased reliance on H-2A workers.
Comparing the explanatory power of production shares versus VFP growth would help clarify the broader economic conditions shaping agricultural labor demand. Future research may also focus on farm-level behavioral factors, employer cost-benefit analyses, and the effects of evolving immigration policies to develop a more comprehensive understanding of labor dynamics in the agricultural sector.
Choice Experiment Outcomes
Our study finds strong evidence of demand for a guest worker program among beef cattle farmers who both need and could benefit from such a program to address labor shortages. First, we verified that beef cattle farmers have a notable hired labor demand. The majority (63%) reported hiring one to five workers, while 10% hired more than five. These figures are relatively consistent with the current average of 5.02 workers per H-2A application (U.S. Department of Labor, 2024), suggesting that the scale of demand aligns with the program’s typical range.
Second, most beef cattle farmers have experienced challenges in luring and hiring domestic residents to work in their farms. Such experiences suggest the shortage of domestic residents willing to take on farm jobs, most likely due to the incongruence between the demands of farm work and remuneration packages for workers that often lack adequate economic and health safeguards (Luo and Escalante, 2017a). While such challenging labor hiring predicament has been confirmed among crop farms (Escalante, Wu, and Li, 2016), our results suggest that such labor hiring issues also extend into livestock ranches, specifically beef cattle production. This finding is consistent with prior literature (Hertz and Zahniser, 2013; Zahniser, 2018) and highlights the potential value of a guest worker program in addressing persistent labor gaps.
Third, we find that although the majority of beef cattle farmers’ labor demand includes well-scheduled routine work, more than half (51%) report some form of temporary or seasonal labor demand that is eligible under the current H-2A program regulations. This contrasts with the prevailing perception that livestock labor is inherently year-round and thus could not rely on the H-2A for its labor needs.
Moreover, the tasks most cited by the beef cattle farmers, such as cattle care and farm maintenance, fall under the recently updated scope of the H-2A definition of agricultural work. However, some severe misalignments appear between beef cattle farmers’ labor demand and the current H-2A program rules may hinder its utilization.
Survey Overall Findings
This project’s survey of cattle and dairy farmers in Georgia, North Carolina, and Wisconsin provides an indication that, while the rest of the farm sector is heavily dependent on foreign workers, livestock farms do not have an overwhelming reliance on foreign hired labor. Unlike most labor-intensive agricultural industries, livestock production’s labor requirements are usually smaller and thus could apparently be adequately met by available family and domestic workers. This labor utilization and demand trend coincides with more recent technological adoption decisions made by livestock farmers that started automating their production processes. Dairy farmers, for example, are either already using or planning to invest in automatic milking systems (Gutierrez-Li, et al., 2025), which demand few workers and operate via robots.
However, our results also show that livestock producers do not altogether write off the foreign labor hiring alternative. Some farmers shared their recommendations for certain changes in the regulations and implementation guidelines governing the H-2A program that would a) allow them to use H-2A labor inputs, despite the program’s current inability to accommodate non-seasonal, longer-term labor contracts and b) lower the costs associated with housing the workers in the U.S. If such modifications were to be realized, the relative costs of hiring domestic versus foreign workers would likely change, which could lead to an increase in demand for H-2A workers given the role played by relative wages in impacting demand (Escalante, et al., 2025). Furthermore, shifts towards more automated livestock production processes could lead to an increase in labor demand, as workers and capital serve as complements (Holtkamp and Orazem, 2025).
Outreach Implications:
Livestock extension specialists often have to address labor-related concerns of their extension clientele as labor shortages continue to pose significant challenges across U.S. agricultural sectors, threatening productivity, supply chain stability, and industry competitiveness. When outreach specialists are compelled to offer solutions to their livestock farming clientele’s domestic employment frustrations, they must be fully cognizant of more realistic hiring alternatives that apply to the more peculiar employment structure and demand of livestock operations. Among crop farms that grapple with the challenges of domestic workers’ lack of motivation to work in farms usually consider the H-2A program as a viable replacement labor hiring alternative. However, the livestock farms’ H-2A hiring predicament is less straightforward than the crop farms’ situation.
The livestock extension clientele may find important information and implications in our survey results as they reveal substantial hired labor demand and severe impacts from labor shortages. Furthermore, there is a perception among beef cattle farmers that the H-2A program could help address these challenges. Their labor demand generally fits the program’s hiring scales and agricultural work definitions. However, major misalignments may cause low utilization: (1) the temporary (or seasonal), and full-time employment requirements disqualify most beef cattle labor demand, (2) the AEWR exceeds typical sector wages, imposing financial burdens, and (3) the lengthy application process complicates labor planning. Extension specialists must caution their livestock farm clients on a more calculated use of the H-2A hiring option by taking advantage of the program’s relaxation of certain labor rules affecting livestock operations, yet mindful of the mismatching issues raised here.
While recently proposed (eventually unsuccessful) congressional bills have aimed to allow year-round employment, lower the AEWR, and simplify applications, the rigid full-time employment requirement has received little attention. Better flexibility in hiring arrangements, especially through the proposed Portable H-2A Program, could significantly improve program accessibility for beef cattle farmers. When combined with broader reforms, a restructured H-2A program could deliver substantial benefits to the beef cattle industry and the broader livestock sector by mitigating labor shortages, supporting productivity, enhancing supply chain resilience, and improving competitiveness.
Information Products
- Automated Milking Systems: A challenge and opportunity for Midwest Dairy Farmers
- Labor Demand and Outlook: Insights from the Livestock Sector
- LIVESTOCK FARMS’ EMPLOYMENT OF DOMESTIC AND FOREIGN WORKERS
- The Costs and Benefits of Mechanization: A Look at the Dairy Sector
- Automatic Milking Systems: Labor-Savings Route or Costly Gamble for Dairy Farmers?
- Understanding the Labor Needs of Livestock Producers
- Relating Crop and Livestock H-2A Labor Decisions to AEWR and Sectoral Wage Gaps
- Where Are the Workers? A Look at the Labor Needs of Livestock Farmers
- Does Administration Mode Affect Survey Outcomes Among Hard-to-Reach Populations? An Intercept Survey with Beef Cattle Farmers
- STRUCTURAL, INDUSTRY, AND POLICY DETERMINANTS OF U.S. LIVESTOCK FARMS' REDUCED DEPENDENCE ON H-2A FOREIGN FARM WORKERS