On-site agricultural greenhouse labor. | Michigan State University Extension and Grow Agriculture Media LLC
Michigan greenhouse growers are facing significant labor challenges, according to a newly published report by the Michigan State University Department of Agricultural, Food, and Resource Economics (AFRE). The study, conducted through survey responses from 45 greenhouse floriculture producers across 11 Michigan counties, provides crucial insights into labor shortages, H-2A visa employment, and the adoption of labor-saving technologies.
Labor Shortages Impacting Greenhouse Capacity
A key finding of the report is that 45% of greenhouse operators could not meet the labor demands necessary to run their operations at full capacity. On average, these businesses faced a 31% labor shortfall, limiting productivity and profitability. This deficit underscores the need for innovative solutions to address workforce constraints in the industry.
H-2A visa use remains limited but holds potential. Despite the increasing national reliance on the H-2A visa program for agricultural labor, only 33% of surveyed Michigan greenhouse growers reported employing H-2A workers in 2023. While some farmers expressed interest in using the program, barriers such as high wages and housing costs deterred participation. Others prioritized hiring local workers first but acknowledged that H-2A could be a viable option if domestic labor shortages persisted.
Technology Adoption Helps Ease Labor Challenges
To mitigate workforce shortages, 39% of respondents reported integrating labor-saving technology into their operations. Most of these investments cost under $100,000, and 60% of those who implemented such technologies found that they effectively reduced labor needs — by an average of 5%. Additionally, 40% of growers modified their product mix to lower labor costs, further demonstrating adaptive strategies to overcome workforce constraints.
H-2A Labor: Higher Costs, Higher Productivity
The study also examined the productivity and cost differences between H-2A and non-H-2A employees. While H-2A labor was reported to be more expensive — averaging 41% higher costs — growers noted that these workers were also more productive. In fact, 60% of respondents employing H-2A workers stated that they were more efficient than their domestic counterparts. This productivity premium suggests that, despite higher costs, H-2A labor can offer substantial operational benefits.
Addressing the Future of Greenhouse Labor
As labor shortages persist, Michigan greenhouse growers are exploring a variety of strategies to sustain their businesses. Whether through increased H-2A participation, technological advancements, or product mix adjustments, growers are actively seeking solutions to remain competitive in an evolving labor market.
For additional information on current labor challenges affecting the market, please read the original article published in the Floriculture & Greenhouse Crop Production section of the MSU Extension website.
