The election of Donald Trump and his promises of mass deportation of illegal migrants are raising concerns among American farmers, who depend on migrant labor. In Florida, strict immigration laws have led to higher wages for farmworkers, making the situation even more difficult for producers. Tony DiMare, a tomato farmer, points out that a general deportation would be disastrous for agriculture, as it could reduce the available workforce.
The H-2A program, which allows foreign workers to be hired legally, is complex and expensive, which limits its use. Many migrant workers, fearing controls, have left Florida, leading to the abandonment of some crops. Rising labor costs are likely to be passed on to consumers, affecting food prices. Thus, it is estimated that mass deportations would increase the cost of a homemade hamburger by 41 cents out of a total cost of $3.28.
Agricultural experts are concerned about the economic consequences of such a policy, including increased inflation. Farmers hope that the deportations will mainly target criminals, which is not the case with the raids that have already begun. Farmers are looking for solutions to secure a reliable workforce while navigating an uncertain legislative environment.
It should be remembered that American agriculture employs 850,000 workers, half of whom are undocumented. Among them, there are 160,000 workers who migrate with the seasons to harvest vegetables, especially in Florida. The cost of H-2A labor (workers with seasonal work permits) has increased to $16.23 per hour, compared to about $10 for undocumented workers.
Source: Bloomberg