Blog: Michigan’s Specialty Crop Industry at Risk. The Economic Toll of Rising H-A2 Wages

Michigan’s specialty crop industry—spanning apples, asparagus, cherries, blueberries, cucumbers, broccoli, squash and more—is an economic powerhouse, generating $6.3 billion annually and supporting nearly 41,700 jobs. This sector is a key driver of rural economies, sustaining local businesses, processors, and supply chains. However, Michigan's specialty crop farms are facing an existential crisis: the relentless rise in Adverse Effect Wage Rates (AEWR) for H-2A visa workers.

For than a decade, the H-2A program has been a vital source of labor for Michigan specialty crop farmers who struggle to find local workers willing to take on physically demanding seasonal jobs. In 2025, the AEWR in Michigan is $18.15 per hour which does not include other costs borne by the grower which pushes the hourly rate to nearly $30.  Over the past decade, the AEWR has skyrocketed more than 50%, far outpacing inflation and farm revenue.

Michigan State University’s recent research warns that specialty crop production is already in decline, and further cost increases could push many farms past the breaking point. If the current trends continue, the industry risks widespread farm closures, job losses, and increased reliance on foreign-grown produce.

The Economic Powerhouse of Michigan’s Specialty Crops

A recent study by Michigan State University outlines the economic importance of Michigan’s specialty crop industry. The findings are clear: Michigan’s specialty crop industry contributes $6.3 billion to the state’s economy each year, with $3.1 billion generated directly from farm sales. The industry also sustains nearly 41,700 jobs, ranging from farm laborers to food processors and supply chain workers. These crops not only feed Michigan but also provide fresh fruits and vegetables to markets across the Midwest and beyond, playing a significant role in national food security.

One critical insight from the study is the interdependence of Michigan’s specialty crops. Many crops rely on shared infrastructure, labor pools, and supply chains. Apples and asparagus serve as “anchor crops,” bringing in laborers early in the season and keeping them employed throughout the harvest. If these key crops disappear, the entire industry faces a domino effect—making the AEWR crisis even more dangerous. The study also warns that transitioning specialty crop acreage to row crops such as corn and soybeans would not come close to replacing the lost economic activity and jobs. While this is a hypothetical scenario, it underscores the critical role specialty crops play in Michigan’s economy.

The Labor Crisis: How AEWR is Threatening Michigan Farms

The H-2A program was designed to address seasonal farm labor shortages, but Michigan farmers say the associated costs are becoming unsustainable. The 2025 AEWR of $18.15 per hour is $5.67 higher than Michigan’s minimum wage of $12.48. When factoring in housing, transportation, and compliance costs, Michigan farmers estimate that their real labor costs per H-2A worker approach $30 per hour. Many growers cannot pass these costs onto consumers due to price competition with lower-cost foreign imports, particularly from Mexico and South America.

The result is a growing number of farmers being forced to abandon crops, scale back production, or leave parts of their fields unharvested. Some asparagus and apple growers, for example, report that they haven’t replanted these perennial crops in several years due to rising labor costs. With such an uncertain economic outlook, many farmers are reconsidering their long-term future in the industry.

Real Stories from Michigan Farmers: A Crisis in Motion

The AEWR increases aren’t just numbers on a spreadsheet—they’re devastating real Michigan farmers. Caleb Herrygers, a fourth-generation farmer who grows asparagus, cherries, and apples, says his farm is now paying $400,000 more per year for the same amount of labor than in 2016. He worries that if labor costs continue to rise, his children will not be able to continue the family’s farming legacy. Bill Schwass, a longtime asparagus grower at Springdale Farms, has not replanted for three years, saying that at current labor costs, he cannot afford to maintain his asparagus production.

Mike Wittenbach, of Wittenbach Orchards, explains that the rising cost of labor is making it difficult to keep his farm profitable. He warns that if Michigan farms continue to shut down, the U.S. will become even more dependent on imported produce.  Michigan cherry growers have already felt the impact, with some resorting to destroying their crops because production costs continually exceed revenues. These stories highlight an alarming trend: farms that have operated for generations are now at risk of closing permanently.

The Domino Effect: What Happens If Specialty Crops Disappear?

Michigan State University’s research modeled a hypothetical scenario in which large portions of Michigan’s specialty crop farmland shifted to row crops like corn and soybeans. The findings suggest that such a transition would have devastating consequences. The loss of specialty crops would reduce Michigan’s agricultural economic output by $5.2 billion.  The switch would also eliminate thousands of jobs, as specialty crops require significantly more labor than row crops.

Beyond the farm, rural communities would suffer as local businesses, including equipment suppliers, processing facilities, and service providers, lose their core customers. The economic multiplier effect of specialty crop production—where each dollar spent on farming supports multiple jobs in related industries—would collapse. Although this shift remains hypothetical, it serves as a dire warning: if labor costs continue rising unchecked, Michigan’s agricultural landscape could change permanently.

The Path Forward: What Can Be Done?

A growing coalition of Michigan agricultural groups, Protect Our Produce, is calling for urgent policy changes. Their top priority is securing a freeze on AEWR increases. The Supporting Farm Operations Act, introduced by Rep. John Moolenaar, proposes pausing the AEWR at 2023 levels through the end of 2026. Many Michigan agricultural leaders support the bill as a necessary step to prevent further farm closures.

Farmers and industry leaders are also calling for a more predictable wage system. Unlike Michigan’s minimum wage, where annual increases are capped at inflation, the AEWR can rise unpredictably each year, making it difficult for farmers to plan long-term investments. They argue that a more stable system is needed to allow for strategic decision-making and reinvestment in farming operations.

Public awareness and advocacy are also crucial. Consumers need to understand that rising labor costs are pushing Michigan-grown fruits and vegetables out of the market. The Protect Our Produce coalition is working to educate policymakers and the public on the long-term consequences of failing to address the AEWR crisis. Without immediate action, Michigan’s ability to grow fresh, high-quality produce could be permanently compromised.

Conclusion

Michigan’s specialty crop industry is at a crossroads. If the AEWR continues rising unchecked, farm closures, job losses, and economic decline will accelerate. Specialty crops are not just a business—they are a critical component of national food security, rural economies, and the future of Michigan agriculture.

The time to act is now. Michigan farmers need fair, sustainable labor policies that allow them to remain competitive while continuing to provide high-quality, locally grown produce. Without change, the next generation of Michigan farmers may never get their chance to carry on this proud tradition. The solution is within reach—policymakers must act before it’s too late.