Immigration Raids Hurt Farmers

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Farmers Want Congress to Act

While some employers of immigrants fear the limelight, the 55-year-old Torrey is unabashedly vocal in her opposition to the government's proposed crackdown. She set up the Web site www.saveUSFarms.org, which allows farmers to sign a petition and make donations in support of the AgJobs bill (S. 1645/ H.R. 3142). She also testified before Congress on the issue. The bill, currently being debated in Congress, would streamline the H-2A farm worker visa program and also allow workers a path to permanent resident status.

"Every day I'm picking what crops my crew should tend to because I don't have enough workers for all of them," says Torrey. "We need Congress to act before the end of the year; farmers are in a crisis."

Many agriculture experts agree. On Oct. 4, farmers and economists testified in front of the U.S. House of Representatives' Agriculture Committee to plead their case for reform. "The U.S. agricultural industry is in the midst of a labor crisis, the resolution of which will determine whether U.S. producers…are more than marginal participants in U.S. and global markets," said Holt in his testimony in support of AgJobs.

While AgJobs is debated, some growers are advocating more employer-friendly regulations. The Bush administration is currently rewriting federal regulations, to accommodate employers' needs, that forgo the promise of permanent residency for agricultural workers. The Homeland Security Dept., State Dept., and Labor Dept. are involved in that effort, which was announced alongside the call in August to crack down on workers with suspect Social Security numbers.

It is unclear how much progress Congress can make on immigration reform before it lets out for the year in mid-November. As farmers like Torrey are pushing for AgJobs, other employer groups disappointed by the failure of comprehensive immigration reform in June are stepping up efforts to pass narrower reforms. For example technology companies including IBM (IBM), Microsoft (MSFT), Google (GOOG), and Oracle (ORCL), are pushing for more visas for skilled workers, while tourism and hotel groups advocate for more non-farm, unskilled visas.

Pay Is Not the Problem

One question in the background of the debate is why employers do not raise wages to avoid legal problems and attract a native-born workforce. But unlike other industries that might attract more workers with greater pay—such as nursing (BusinessWeek, 8/28/07) and segments of the technology industry (BusinessWeek, 10/10/07)—it is not clear that raising wages for agricultural work would attract Americans to these jobs. Between 1990 and 2006, wages in agriculture have increased 54%, from an average of $6.12 per hour to $9.44 per hour (both figures are in 2006 dollars). Yet shortages remain common.

Employers and their advocates say that the fact that wages have increased so much and workers are still scarce is evidence that pay is not the problem. "This is not just about wages," says Regelbrugge. "Who wants to get up 3 a.m. and milk the cows? It's not a lifestyle many Americans opt for, especially when there are more comfortable alternatives."

Others argue that raising wages would undoubtedly attract more workers. "Labor shortages are created by employers," says Ana Avendano, director of the immigrant worker program for the AFL-CIO. "Employers say they can't find workers, but look at the conditions they are offering. Some of them are atrocious."

But Torrey says she offers good working conditions, and provides housing and a 401(k) plan for her workers. Workers start at $7.15 an hour, and the average wage on the farm is $10.95 to $11.95 per hour. "It doesn't matter if I raise wages," says Torrey. "We just don't have the population base. There's no one out there."

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Herbst is a reporter for BusinessWeek.com in New York .