“Michigan Grown” could be an option of the past if government wage policies continue to push Michigan growers to breaking point
Coalition meets with Michigan Congressman John Moolenaar to highlight skyrocketing cost of doing business
GREENVILLE, Mich., Sept. 5, 2024 —Today, agricultural leaders and grower groups in Michigan launched the "Protect Our Produce" coalition to draw attention to outdated wage policies that are putting the state's fruit and vegetable growers out of business. If certain government mandated wage policies don’t change soon, Michigan will see less “Michigan Grown” produce in stores and restaurants. Michigan’s fruit and vegetable economy accounts for nearly $6 billion and 40,000 jobs throughout the state.
For Michigan farmers who grow fruits and vegetables, labor costs can make up as much as 55% of their total expenses. In comparison, labor costs in the automotive industry are only about 7%.
One of the major challenges is the Adverse Effect Wage Rate (AEWR), a policy from the U.S. Department of Labor. This policy forces Michigan growers who use H-2A temporary, seasonal guestworkers to pay wages that are 80% higher than the state's minimum wage, and these wages have gone up 28% since 2020.
If these high costs continue, Michigan's $6 billion specialty crop industry—which supports 40,000 jobs and pays $350 million in wages each year—could be in serious danger.
The "Protect Our Produce" coalition was created by a number of key agricultural organizations, including Michigan Asparagus, Michigan Farm Bureau, Potato Growers of Michigan, Michigan State Horticultural Society, Michigan Vegetable Council, Michigan Blueberry Commission, Michigan Tree Fruit Commission, and Michigan Agribusiness Association.
"Our growers are facing a tough choice," said Jamie Clover Adams, Executive Director of Michigan Asparagus. "As labor costs keep going up, and the money they make stays the same or even goes down because of cheaper imports, they are forced to reduce their production of fruits and vegetables just to stay afloat. Once we lose this production, we won't get it back."
The coalition recently met with Congressman Moolenaar to discuss how to raise awareness of this issue in Washington, D.C.
"This isn't just a Michigan problem," the coalition explained. "Growers across the country who rely on temporary, seasonal guestworkers are struggling to survive with these outdated wage policies. We're grateful to Congressman Moolenaar for his support as someone who has always championed fair labor policies that help farms and rural communities in Michigan."
To learn more about the coalition and the challenges Michigan’s fruit and vegetable growers face, visit protectourproduce.com.
About Protect Our Produce
Protect Our Produce was established in 2024 to create awareness about the negative impact the Adverse Effect Wage Rate (AEWR) provision is having on Michigan fruit and vegetable growers and Michigan’s fruit and vegetable economy. The annual, mandated rise in AEWR levels has made family farms unprofitable and many are choosing to opt out of production of hand-picked produce such as asparagus, blueberries, broccoli, squashes and other key fruits and vegetables grown in Michigan. Coalition members include Michigan Asparagus, Michigan Farm Bureau, Potato Growers of Michigan, Michigan State Horticultural Society, Michigan Vegetable Council, Michigan Blueberry Commission, Michigan Tree Fruit Commission, and Michigan Agribusiness Association.
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