July 27, 2004
FOR IMMEDIATE RELEASE
CONTACT: Catherine Warmerdam
(916) 651-9111
cwarmerdam@cdfa.ca.gov
New Study Shows Labor Costs Responsible for 30 Percent of California Farm Expenses
SAN LUIS OBISPO – Labor costs account for nearly 30 percent of
total
farm expenses in California, according to a study recently released by
the California Institute for the Study of Specialty Crops at Cal Poly.
Cal Poly Agribusiness Professor Sean Hurley, the study's principal
investigator, found that the state's farmers and ranchers spend nearly
$6 billion annually on direct-hire and contract-labor expenses,
including wages, Social Security contributions, workers' compensation,
insurance and pension plans. Only Florida spends more on hired and
contracted labor as a percentage of total farm production expenses.
"The findings echo what is heard regularly from producers: that
labor is
a major expense," according to CISSC Director and Agribusiness Professor
Jay Noel.
The study also found that, among domestic competitors, California farms
have among the highest workers' compensation costs. California also has
the highest percentage of farms employing migrant workers. Agricultural
workers in California are paid an average of $9.25 an hour, according
to
the study. The federal minimum wage is $5.15.
To read the full study, please visit CISSC's Web site at
www.cissc.calpoly.edu.
The California Institute for the Study of Specialty Crops provides
timely, objective research and analysis of the policy, economic and
regulatory issues that affect specialty crops. The institute is operated
by the College of Agriculture at Cal Poly.
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Editors please note: Funding for CISSC has been made available by
the
California Department of Food and Agriculture and the United States
Department of Agriculture. The content of this news release does not
necessarily reflect the views or policies of the CDFA or USDA.