Speaking of Farm Labor Costs

You've heard the lament, we need illegal aliens to pick the crops.  Without them our food cost would skyrocket. NOT SO!   Farmers can't find anyone to work for the sub-minimal wage - so try doubling the pay, it'll only raise the cost of lettuce by 8% and possibly save us more other in costs associated with illegal aliens.

Here's a 2009 Study on the issue from U of CA Davis on the subject of Food and labor Costs:

"Farmers get a small share of the retail food dollar, an average 19 percent for all commodities. In 2006, farmers received an average 30 percent of the retail price of fresh fruits and 25 percent of the retail price of fresh vegetables, so consumer expenditures of $429 on fresh produce meant $118 to the farmer (0.3 x 220 = $66 + 0.25 x 209 = $52). Farm labor costs are typically less than a third of farm revenue for fresh fruits and vegetables, meaning that farm worker wages and benefits for fresh fruits and vegetables cost the average consumer unit $38 a year. (www.ers.usda.gov/Briefing/FoodMarketingSystem/pricespreads.htm)

Even though strawberries are picked directly into the containers in which they are sold, and iceberg lettuce gets its film wrapper in the field, farmers and farm workers get a small share of the retail spending on fresh produce. Consumers who pay $1 for a pound of apples are giving 30 cents to the farmer and 10 cents to the farm worker; those spending $2 for a head of lettuce are giving 50 cents to the farmer and 16 cents to the farm worker."

 

And here's their 2002 study  (and demonstrating the inflation in food cost in seven years)

 

"The 109 million consumer units spending an average of $322 and purchase a total of $35 billion a year in fresh fruits and vegetables. Even though strawberries are picked directly into the containers in which they are sold, and iceberg lettuce gets its film wrapper in the field, farmers received an average 16 percent of the retail price of fresh fruits in 2000, and 19 percent of the retail price of fresh vegetables, so $322 from the consumer means $56 to the farmer (0.16 x 163 = $26 + 0.19 x 159 = $30). Farmers do not pay all of this $56 to farm workers- farm labor costs are typically less than a third of farmer revenue, meaning that farm worker wages and benefits are less than $18 per household a year, or less than one half of one percent of average annual spending. 

 

"This means that consumers who pay $1 for a pound of apples, or $1 for a head of lettuce, are giving 16 to 19 cents to the farmer, and 5 to 6 cents to the farm worker."

 

For a more detailed cost analysis, go to the exciting report "SAMPLE COST TO ESTABLISH AND PRODUCE ICEBERG LETTUCE" dated but informative