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Fact check: What are the economic consequences of crop yield losses due to labor shortages in 2025?

Checked on September 13, 2025

1. Summary of the results

The economic consequences of crop yield losses due to labor shortages in 2025 are significant and far-reaching, affecting various sectors of the agricultural industry [1]. Labor shortages, partly due to ICE raids, have led to unharvested crops, food supply delays, and rising grocery prices [1]. The impact of a shrinking labor force on the US economy, including rural areas, is also a concern, with increased adoption of technology, such as AI and robotics, potentially necessary to address labor shortages in agriculture [2]. Some sectors, like animal protein and dairy, remain strong despite labor challenges [3]. In California's farming sector, labor shortages may lead farmers to alter production and labor management practices, such as raising wages or adopting labor-saving technologies [4]. The US agriculture and food manufacturing industry faces labor challenges, including labor shortages, rising wages, and an aging workforce, highlighting the need for automation, digital transformation, and workforce development [5]. The reliance of US agriculture on foreign-born workers, particularly in specialty crop production, is also a concern, with potential solutions including automation or the H-2A temporary agricultural workers program [6]. Labor shortages have resulted in increased farm labor costs, with a 30% increase in wage expenses for small farms and over 10% for large farms, contributing to record levels of labor costs forecast at over $53 billion in 2025 [7]. The impact of labor shortages on individual farmers can be devastating, with one farmer in Oregon losing half his workforce due to immigration enforcement, resulting in a loss of $250,000-$300,000 in revenue [8].

2. Missing context/alternative viewpoints

Some key facts and context are missing from the original statement, including the specific sectors of the agricultural industry that are most affected by labor shortages [3], the potential solutions to address labor shortages, such as automation, digital transformation, and workforce development [5], and the reliance of US agriculture on foreign-born workers, particularly in specialty crop production [6]. Alternative viewpoints, such as the impact of labor shortages on rural areas and the need for increased adoption of technology to address labor shortages, are also important to consider [2]. Additionally, the stories of individual farmers affected by labor shortages, such as the farmer in Oregon who lost half his workforce due to immigration enforcement, provide valuable context and highlight the human impact of labor shortages [8]. The economic benefits of addressing labor shortages, such as increased productivity and competitiveness, are also important to consider [5].

3. Potential misinformation/bias in the original statement

The original statement may be biased towards highlighting the negative consequences of labor shortages, without fully considering the potential solutions and economic benefits of addressing labor shortages [5]. The statement may also overlook the complexity of the issue, including the reliance of US agriculture on foreign-born workers and the need for increased adoption of technology to address labor shortages [6]. Additionally, the statement may not fully capture the human impact of labor shortages, including the stories of individual farmers affected by labor shortages [8]. The agricultural industry and farmers may benefit from a more nuanced and comprehensive understanding of the issue, including the potential solutions and economic benefits of addressing labor shortages [1]. The technology industry may also benefit from increased adoption of technology to address labor shortages, highlighting the need for a multi-faceted approach to addressing the issue [5].

Want to dive deeper?
How do labor shortages affect crop yields in the United States in 2025?
What are the estimated economic losses in the agricultural sector due to labor shortages in 2025?
Can automation mitigate the economic consequences of labor shortages in farming by 2025?