Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of...

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Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of The Role of Immigrant Labor on Immigrant Labor on US Dairy Farms US Dairy Farms Fanning Lecture Series Fanning Lecture Series University of Georgia University of Georgia November 15, 2012 November 15, 2012

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Motivations Over Past 7-8 Years, Increasing Shortages of Labor in Agriculture Construction, Oil/Gas Expansion, Hurricane Relief & Increased Enforcement of Immigration Laws Are Main Reasons Ag & Producer Groups Concerned About Impacts of Labor Losses on Farms & Industries Current Population Survey Estimates 57% of Ag Workforce is Foreign Born Lack of Information Our Profession Has a Role

Transcript of Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of...

Page 1: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Parr Rosson, Professor & HeadDepartment of Agricultural EconomicsTexas A&M University

The Role of Immigrant The Role of Immigrant Labor on US Dairy FarmsLabor on US Dairy Farms

Fanning Lecture SeriesFanning Lecture SeriesUniversity of GeorgiaUniversity of Georgia

November 15, 2012November 15, 2012

Page 2: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

OverviewOverview

Motivations for StudyMethods & ResultsImplications

Page 3: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

MotivationsMotivations Over Past 7-8 Years, Increasing Shortages of

Labor in Agriculture Construction, Oil/Gas Expansion, Hurricane Relief & Increased

Enforcement of Immigration Laws Are Main Reasons

Ag & Producer Groups Concerned About Impacts of Labor Losses on Farms & Industries

Current Population Survey Estimates 57% of Ag Workforce is Foreign Born

Lack of Information Our Profession Has a Role

Page 4: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

What Was Done?What Was Done?

National Mail Survey of 5,005 Dairy Farms in 2008 Random Sample of 715 Farms in 7 Regions 1,344 of 2,071 Returned Surveys Were Analyzed Flynn Adcock, David Anderson, Dwi Susanto &

I Conducted in Analysis Only Farms With Hired Labor Were

Analyzed Sample Size Varied by Question

Page 5: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Survey RegionsSurvey Regions

California

FLORIDA

MISSISSIPPI

WESTVIRGINIA

RHODE ISLAND

WASHINGTON

OREGON

IDAHO

MONTANA

WYOMING

NORTHDAKOTA

SOUTHDAKOTA

NEBRASKAIOWA

MINNESOTA

WISCONSIN

ILLINOISINDIANA OHIO

MISSOURIKANSAS

COLORADO

UTAH

NEVADA

CALIFORNIA

ARIZONANEW MEXICO

OKLAHOMA ARKANSAS

KENTUCKYVIRGINIA

TEXAS

MASSACHUSETTS

GEORGIAALABAMA

SOUTHCAROLINA

NORTH CAROLINATENNESSEE

PENNSYLVANIA

MARYLAND

NEW JERSEY

NEW YORK

CONNECTICUT

VERMONT

NEW HAMPSHIRE

MAINE

DELAWARE

LOUISIANA

MICHIGAN

SouthwestSoutheast

NortheastMidwest

North Northwest

Page 6: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Survey ResultsSurvey Results

Farm Structure & CharacteristicsHired Labor, Wages & Employee

CharacteristicsWorker Documentation &

EnforcementSouth Is Emphasized

Page 7: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.
Page 8: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Milk Production per FarmMilk Production per Farm

62% of Milk 62% of Milk Production from Production from Farms Employing Farms Employing Immigrant LaborImmigrant Labor

Page 9: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Share of Income from Dairy FarmShare of Income from Dairy Farm- % of Farms -

Page 10: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Employees per FarmEmployees per Farm

47% of Farms 47% of Farms Employed Employed Immigrant Immigrant

LaborLabor

Page 11: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Employee Origin & WagesEmployee Origin & Wages

98% of 98% of Immigrant Immigrant Labor from Labor from

MexicoMexico8.78.7

1.71.7

Page 12: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Non-Wage BenefitsNon-Wage Benefits

Page 13: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Labor Shortages & TurnoverLabor Shortages & Turnover

20% of 20% of Farms Had Farms Had

Labor Labor ShortageShortage

Page 14: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Impacts of Labor ShortagesImpacts of Labor Shortages

Page 15: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Reactions to Labor ShortagesReactions to Labor Shortages

Page 16: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Employee Documents RetainedEmployee Documents Retained

Page 17: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Confidence in DocumentsConfidence in Documents

38.438.4 38.638.6

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Concern About ICE RaidsConcern About ICE Raids

46.646.6

Page 19: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

ImplicationsImplications

Immigrant Labor, Especially from Mexico, Is Important to Dairies in the South

Dairies Employing Immigrant Labor Pay Higher Wages

Labor Shortages & Turnover Had Negative Impacts on Some Dairies

Page 20: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

ImplicationsImplications

Increasing Wages May Not Attract More Labor

Some Farmers Concerned About Documentation

Lack of Immigration Policy Reform May Make Labor Situation Worse

Page 21: Parr Rosson, Professor & Head Department of Agricultural Economics Texas A&M University The Role of Immigrant Labor on US Dairy Farms Fanning Lecture Series.

Questions?

Thanks!!

Parr [email protected]