Labor Shortages Are Driving Up Food Prices, New Research Finds
December 30, 2025 
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New research led by Michigan State University Assistant Professor Zachariah Rutledge highlights how labor shortages are increasingly shaping food prices in the U.S., offering quantitative insight into a challenge long felt by growers across the agricultural sector. The findings, as reported in a recent article in Scripps News, show that labor constraints are not only disrupting farm operations but also directly contributing to higher costs for consumers.
Rutledge’s analysis, conducted in collaboration with the farmer advocacy group Grow It Here, estimates that a 10% decline in domestic farm employment results in nearly a 3% increase in food prices — equivalent to approximately $3.4 billion annually.
U.S. Farms Operating Below Workforce Capacity
According to the study, U.S. farms are currently operating at roughly 79% of desired staffing levels, reflecting a steady erosion of labor availability over the past decade. Surveys cited in the Scripps News’ article show that the share of farms experiencing labor shortages has risen from 14% in 2014 to more than 50% in recent years, with the trend expected to continue.
The Scripps article also documents how labor shortages are resulting in unharvested crops, lost revenue, and downstream supply chain disruptions. Farmers described produce being left in fields due to insufficient labor despite strong market demand, a dynamic that ultimately pushes food prices higher for consumers.
Immigration Policy Deepens Workforce Uncertainty
Immigration policy plays a central role in these labor constraints. Roughly 70% of U.S. farmworkers are immigrants (per the U.S. Department of Labor’s National Agricultural Workers Survey), many of whom lack permanent legal status. Heightened enforcement and uncertainty have further reduced workforce participation, even among legally authorized workers, according to growers interviewed by Scripps News.
The reporting also situates these challenges alongside the Trump administration’s recent announcement of a $12 billion farm aid package intended to offset rising production costs linked to tariffs and market disruption. While farmers broadly welcomed the assistance, those interviewed emphasized that financial relief alone does not resolve the structural labor shortages driving long-term instability across the food system.