Immigration Reform: What Does It Mean for Agriculture?
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POLICY ISSUES
PI5 - September 2009
A publication of the
Insights on food, farm, and resource issues
Agricultural & Applied AAEA
Agricultural & Applied
Economics Association Economics Association
Immigration Reform: What Does It Mean
for Agriculture?
Philip Martin
JEL Classifications: J43, J48
About 5% of U.S. residents and 7% of California resi- Immigration
dents are foreigners believed to be illegally in the United In 1970, the 10 million immigrants in the United States
States (Passel and Cohn, 2009). Over half of the hired were less than 5% of U.S. residents; by 2010, the 40 mil-
workers employed on U.S. and California crop farms lion immigrants are likely to be 13% of U.S. residents. The
have been unauthorized for the past decade, a period dur- largest single source of immigrants is Mexico—a third of
ing which unauthorized workers spread from crop farms foreign-born U.S. residents were born in Mexico. Most
to dairies and other livestock operations throughout the Mexican-born U.S. residents arrived since 1990, and a few
United States (NAWS). numbers highlight the dramatic growth. In 1970, when
In most industrial countries, 5 to 15% of residents were Mexico’s population was about 50 million, there were
born abroad; the United States is near the high end of this less than 750,000 Mexican-born U.S. residents. By 2010,
range, with 39 million foreign-born residents in 2008, when Mexico expects 110 million residents, there are likely
almost 13% of the 305 million U.S. residents (OECD, to be 13 million Mexican-born U.S. residents, meaning
2009). However, the United States is unique in having over that more than 10% of those born in Mexico will have
30% of its foreign-born residents unauthorized. The esti- moved to the United States.
mated 12.5 million unauthorized foreigners in 2008 were There are three major subgroups among the foreign
equivalent to the population of the fifth most populous born. About 14 million are naturalized U.S. citizens, in-
state, Pennsylvania. cluding California Governor Arnold Schwarzenegger.
President Obama met with 30 Congressional leaders on Another 14 million foreign-born U.S. residents are legal
June 25, 2009 to begin “an honest discussion about the immigrants who have not yet become naturalized U.S. citi-
issues” involved in comprehensive immigration reform, zens and temporary visitors such as foreign students and
which has three major elements: legalization for some of guest workers, many of whom stay in the United States sev-
unauthorized foreigners in the United States; a secure ID eral years and some of whom become immigrants. Finally,
to make future employment of unauthorized workers more there are 12 million unauthorized foreigners, including
risky for their employers; and a framework to deal with “fu- seven million or 60% Mexicans. Unauthorized foreigners,
ture flows” of migrant workers. In Mexico in August 2009, almost all of whom were born in Mexico, are over half of
Obama said he remained committed to comprehensive the hired workers on U.S. crop farms.
immigration reform, but that it would have to wait until Between 2003 and 2007, when the U.S. unemploy-
2010 so that Congress can deal with health care, energy ment rate was mostly below 5% , the number of unau-
and reform of financial regulation. thorized foreigners in the United States increased by about
This article explores the implications of comprehensive 500,000 a year, including 300,000 Mexicans (Passel and
immigration reform for farm employers, farm workers, and Cohn, 2009). During this period of low U.S. unemploy-
rural communities. After a brief review of immigration pat- ment rates, Mexican and other unauthorized foreigners
terns, we turn to the role of foreign-born workers in U.S. spread from California and other traditional migrant desti-
agriculture, outline the major reform proposals, and assess nations throughout the United States. In 1990, California
their likely impacts. had 42% of the estimated 3.5 million unauthorized for-
©2009 POLICY ISSUES. All rights reserved. Articles may be reproduced or electronically distributed as long as attribution to Policy Issues and the Agricultural &
Applied Economics Association is maintained.
PI5 - September 2009 POLICY ISSUES 1eigners in the United States, and the living costs. By 2008, over half of the foreigners loom larger in two farm-
six states with the most unauthorized foreign-born residents in states such related occupations, farm worker
foreigners had 80% of the total. By as Colorado, Indiana, and North and meat packer, where about half
2008, California’s share had fallen to Carolina were unauthorized. and a quarter of production workers,
22% of 12 million unauthorized for- There are about eight million un- respectively, are believed to be unau-
eigners, and the same six states had authorized foreigners in the U.S. la- thorized.
only 60% of the total. bor force, meaning that 5% of U.S.
Many of the “new growth states” workers are unauthorized (Passel and Farm Labor
for unauthorized foreigners are in the Cohn, 2009). Most are employed in There are two major types of labor
Midwest and Southeast. Unauthor- service jobs ranging from food prepa- employed on farms: farmers and fam-
ized workers, but relatively few legal ration to janitorial services, but these ily members whose earnings from
immigrants, were attracted to these occupations have so many employees farm work reflect the difference be-
states by jobs in farming, meatpack- that the unauthorized are less than tween farm revenue and expenses, and
ing, and construction and often lower 15% of all employees. Unauthorized hired workers who are paid on hourly,
piece rate or other bases. Both types
of farm labor have declined over the
past half century due to labor-saving
Figure 1. Unauthorized Share of Foreign-born Residents by State, 2008
changes in farm production, but the
decline in family labor has been most
pronounced. In 1950, there were
an average three farmers and family
members for each hired worker; to-
day, there are two farmers and family
members for each hired worker.
Most U.S. farms do not hire any
labor—less than a quarter of the 2.2
million farms enumerated in the 2007
Census of Agriculture reported ex-
penditures for hired workers. Hired
labor expenditures are concentrated
in three major ways: by commodity,
geography, and size of farm. Farms
producing fruits and nuts, vegetables
and melons, and horticultural spe-
cialties such as greenhouse and nurs-
ery crops (FVH crops) accounted for
over half of the $26.4 billion in total
farm labor expenditures in 2007, in-
Figure 2. Farmers, Family Members and Hired Workers Employed on Farms, cluding almost $22 billion for work-
1950–2006 ers hired directly and $4.5 billion for
contract labor expenditures.
Most hired farm workers were
born abroad, and almost all new farm
workers were born outside the US.
The supply of U.S. farm workers de-
pends on U.S. farm wages remaining
significantly above wages in workers’
countries of origin, primarily Mexico.
However, most foreign-born workers
do not stay in the seasonal farm work
force, so that the U.S. farm labor mar-
ket resembles a revolving door, ab-
sorbing newcomers from abroad and
Source: Kandel, 2008, p13
retaining them for less than a decade.
2 POLICY ISSUES PI5 - September 2009The National Agricultural Worker workers is not new. The commercial Then President Bush issued a
Survey (NAWS) finds a sixth of farm farms that evolved in the western statement expressing strong support
workers are newcomers, or in the United States in the late 19th cen- for the House enforcement- and-at-
United States less than a year, equiva- tury depended on newcomers with trition approach: “America is a nation
lent to 100% turnover every six years. few alternatives to fill seasonal farm built on the rule of law, and this bill
In most industries, turnover is costly jobs. In California, Chinese migrants will help us protect our borders and
for employers, who must invest in the were followed by Japanese and Fili- crack down on illegal entry into the
recruitment, screening and training of pino newcomers, Dust Bowl refugees United States (Bush and Congress:
replacement workers. However, agri- in the 1930s, and Mexicans since the Action?, 2006 ). Migrant advocates
culture minimizes the costs normally Bracero Program began in 1942. The decried the House bill, and their
associated with high labor turnover in children of these workers educated in protests culminated in mass rallies
several ways, including hiring crews the United States rarely follow their May 1, 2006. Unauthorized migrants
of workers via bilingual intermediar- parents into the fields, helping to were encouraged to demonstrate their
ies and developing wage systems that explain the keen interest of farm em- economic importance by refusing to
keep labor costs stable even if worker ployers in immigration policy. work, and some meatpacking plants
productivity varies. For example, crew closed for the day. Perhaps not co-
pushers or slow-moving conveyor belts Immigration Reform incidentally, beef, chicken and pork
in the field can set a productivity stan- The United States has been debating prices were at three-year lows, and
dard for workers paid hourly wages, what to do about the growing number provided another reason for closing
and workers who do not earn enough of unauthorized foreigners for almost the plants May 1, 2006.
at the employer-set piece rate are nor- two decades, a period in which the The Senate under Democratic
mally not retained. There are no lon- number of unauthorized foreigners leadership took a “comprehensive
gitudinal data that track farm workers almost quadrupled and illegal mi- approach” to immigration reform
over time, nor studies to prioritize the grants spread throughout the country. in May 2006, approving the Com-
steps that employers could take to in- There are two contending approaches: prehensive Immigration Reform Act
duce seasonal farm workers to remain enforcement-and-attrition, and com- (CIRA) on a 62-36 vote. The CIRA
in the farm work force longer. prehensive immigration reform. included many of the same enforce-
The NAWS paints a picture of a The House under Republican lead- ment provisions that were in the
Spanish-speaking farm work force ership in December 2005 approved House bill, such as a requirement that
with little education employed about the Border Protection, Antiterrorism, employers use an internet-based sys-
two-thirds of the year on FVH farms. and Illegal Immigration Control Act tem to check the legal status of newly
These hired workers earned an av- on a 239-182 vote. It called for man- hired and current employees and
erage $8 an hour in 2006, half the datory screening of newly hired as well more fencing on the Mexico-U.S.
$16 average hourly earnings of U.S. as existing employees to ensure that all border. However, CIRA also offered
production workers. Earning half as workers are legally authorized, more a path to legal immigrant status for
much for two-thirds as many weeks fencing along the Mexico-U.S. bor- unauthorized foreigners in the Unit-
of work means that farm workers had der, and legal and policy changes to ed States at least two years and a new
annual earnings that averaged only a make life more difficult for unauthor- guest worker program with a “market
third of the $34,000 of nonfarm pro- ized foreigners, such as making “illegal mechanism” to adjust the number of
duction workers. Most crop workers presence” in the United States a felony visas available. If employers requested
rented housing away from the farm and encouraging state and local police all available visas before the end of
where they worked and reported re- to be trained to check the immigra- the year, the number of visas available
ceiving no employment-related ben- tion status of persons they encoun- would rise for the following year. The
efits from farm employers such as ter. The House bill, considered an House did not consider the Senate
health insurance of pensions. enforcement-and-attrition approach bill.
The combination of relatively to illegal migration, did not include a In May-June 2007, the Senate
low wages and seasonal work reduc- guest worker or legalization program, again considered comprehensive im-
es the appeal of farm work to most under the theory that enforcement migration reform with the active
U.S. workers. This means that those should be proven effective before ad- encouragement of President Bush.
attracted to the farm work force are ditional migrant workers arrive legally However, the Senate’s 2007 bill was
workers whose alternative U.S. job and before the government perhaps “tougher” on illegal migration by,
options are limited by lack of English, legalizes some of the unauthorized for example, not allowing the entry
education, and other factors. The re- foreigners in the United States. of additional guest workers until the
liance on newcomers to be seasonal president certified that stepped-up
PI5 - September 2009 POLICY ISSUES 3enforcement had reduced unauthor- of AgJOBS, including legalization for doing at least 150 days of farm work
ized migration. One provision would unauthorized farm workers and em- in any three years, plus 100 days in a
have required unauthorized foreign- ployer-friendly changes to the H-2A fourth year (for workers who do not
ers seeking legalization to leave the guest worker program, were negoti- do 150 days in each of the first three
United States and re-enter legally, a ated by farm employers and farm years).
“touchback” requirement that mi- worker advocates in December 2000, Legalization, the major goal of
grant advocates said would deter mi- just before President Bush took office. farm worker advocates, is offset in Ag-
grants fearful of not being allowed AgJOBS echoes the agricultural JOBS by changes to the H-2A guest
back into the United States. The bill provisions of IRCA in 1986, which worker program, the major goal of
stalled when majority Democrats legalized then illegal farm workers farm employers. The H-2A program
could not secure the 60 votes needed and gave farmers easy access to guest allows farm employers to request cer-
to stop debate. workers in the event of farm labor tification from the U.S. Department
shortages. However, only the agricul- of Labor to have foreign workers ad-
Agricultural Provisions tural legalization provisions of IRCA mitted “temporarily to the United
U.S. farm employers may obtain legal took effect; a flood of unauthorized States to perform agricultural labor…
guest workers under the H-2A pro- foreigners in the late 1980s made it of a temporary or seasonal nature.”
gram by obtaining certification from unnecessary to implement the new DOL certified 94,000 farm jobs to be
the U.S. Department of Labor (DOL) guest worker provisions (Martin, filled with foreign workers in FY08,
that two conditions are satisfied: (1) 1994). up from 77,000 in FY07.
there are not sufficient workers who The current version of AgJOBS, AgJOBS would make three ma-
are able, willing, and qualified, and introduced in May 2009 by Senator jor employer-friendly changes to the
who will be available at the time and Dianne Feinstein (D-CA), would al- H-2A program. First, attestation
place needed, to perform the labor or low up to 1.35 million unauthorized would replace certification, effectively
services involved in the employer pe- farm workers who did at least 150 shifting control of the border gate
tition and, (2) that the employment days of farm work in the 24-month from the U.S. Department of Labor
of the alien in such labor or services period ending December 31, 2008 to employers. After making asser-
will not adversely affect the wages and to apply for Blue Card probationary tions (assurances) to DOL that they
working conditions of workers in the status. Unauthorized farm workers have vacant jobs, are paying at least
United States similarly employed. would present evidence of their quali- the minimum or prevailing wage, and
DOL certifies over 95% of em- fying farm work and pay application will comply with other H-2A require-
ployer requests to hire H-2A work- fees and $100 fines to obtain Blue ments, employer job offers would
ers, granting permission to fill 94,000 Card visas with personal biometric be reviewed for “completeness and
farm jobs with H-2A workers in data, which would allow them to live obvious inaccuracies” and normally
FY08, up from less than 50,000 a and work legally in the United States approved within seven days. Foreign
year in the late 1990s. Nonetheless, for five years. The unauthorized fam- H-2A workers would arrive and go
the H-2A program is often described ily members of Blue Card holders to work, and DOL enforcement of
by employers as broken and bureau- in the United States could obtain a employer assurances would respond
cratic, and by worker advocates as “derivative” probationary legal status to complaints of violations of H-2A
unable to achieve the goal of protect- that would allow them remain in the regulations.
ing U.S. workers. Employers often United States and obtain work per- Second, rather than provide the
cite as problems the requirement that mits. free housing to H-2A and out-of-area
they must apply for foreign workers Blue Card holders could earn an U.S. workers as is currently required,
at least 45 days before they expect immigrant status for themselves and AgJOBS would allow farm employers
to employ them, must try to recruit their family members before their to pay a housing allowance of $1 to
U.S. workers, and must provide both Blue Cards expired by continuing to $2 an hour, depending on local costs
foreign- and out-of-area U.S. workers do farm work. There are three con- to rent two-bedroom units that are
with free and approved housing. tinued-farm-work options: (1) per- assumed to house four workers. State
Both Senate bills included a spe- forming at least 150 days (a day is at governors would have to certify that
cial legalization and guest worker least 5.75 hours) of farm work a year there is sufficient rental housing for
program for agriculture, the Agricul- during each of the first three years af- the guest workers in the area where
tural Job Opportunity Benefits and ter enactment; (2) doing at least 100 they will be employed in order for
Security Act or AgJOBS (Rural Mi- days of farm work a year during the H-2A employers to pay a housing
gration News). The major provisions first five years after registration; or (3) allowance rather than provide free
housing.
4 POLICY ISSUES PI5 - September 2009Third, the Adverse Effect Wage Implications for Agriculture The status quo means uncertainty
Rate, the minimum wage that must for farm employers, farm workers,
The hired farm workers who do most
be paid to legal guest workers, would and the communities they share. De-
of the work on large fruit, vegetable,
be frozen at 2008 levels and studied. spite risk-absorbing labor intermedi-
and specialty crop farms are mostly
The AEWR is currently the annual aries that shield many farm employers
unauthorized foreigners, raising risks
average earnings of field and livestock from the risk of fines in the event of
in a subsector of agriculture that al-
workers reported by employers to the enforcement, employers may have to
ready faces higher-than-average pro-
National Agricultural Statistics Ser- raise wages if enforcement removes
duction and marketing risks. The sea-
vice four times a year and reported unauthorized workers, as in meat-
sonal farm labor market has evolved
in Farm Labor (http://usda.mannlib. packing. Farm workers unsure of their
to match immigrant workers with
cornell.edu/MannUsda/viewDocu- future in the United States minimize
short-term jobs on farms, often by re-
mentInfo.do?documentID=1063) investments in human capital, mean-
lying on bilingual intermediaries such
If Congress failed to enact a new ing that several hundred thousand
as crew leaders and labor contractors
AEWR within three years, the AEWR newcomers who have not finished
who speak both English and Span-
would be adjusted on the basis of the high school move into rural and agri-
ish to organize crews of workers and
three-year change in the Consumer cultural areas each year. Finally, rural
move them from farm to farm. If cur-
Price Index, eventually rising with the communities that may not have ex-
rent trends continue, the farm work-
CPI up to 4% a year. perienced large-scale immigration for
ers of tomorrow are growing up today
If AgJOBS is enacted, the H-2A a century are grappling with integrat-
somewhere outside the United States.
program would change to allow dair- ing some of the neediest newcomers
Over 30% of all foreign-born
ies to hire legal guest workers. Cur- arriving in the United States at a time
U.S. residents are unauthorized, and
rently, only employers offering season- of recession and budget uncertainties.
the United States has been debating
al farm jobs may hire H-2A workers, These risks and challenges should
what to do about them for over a
although sheep and goat herders have make immigration reform relatively
decade. President Obama and most
been allowed to work in the United straightforward. However, the fed-
Democrats support comprehensive
States continuously with H-2A visas eral government has little credibility
immigration reform, which entails
for up to three years as an exception. on immigration reform, especially
both new enforcement mechanisms
Under AgJOBS, dairy workers would because the 1986 reform increased
such as a secure worker identification
be added to this exception. Some rather than reduced unauthorized
card to make it harder for unauthor-
H-2A program requirements would migration and spread unauthorized
ized foreigners to fill U.S. jobs and le-
not change, including a requirement workers throughout agriculture and
galization for many of the unauthor-
that employers reimburse H-2A the United States. AgJOBS, endorsed
ized foreigners in the US. AgJOBS, a
workers for their transportation and by most farm employer and worker
special legalization and revised guest
subsistence costs if they complete groups, has been unable to overcome
worker program for farm workers and
their work contracts, that employers opposition from those who favor en-
farm employers, is a component of
continue to hire U.S. workers who forcement-and-attrition rather than
comprehensive immigration reform.
request jobs until half of the work pe- legalization.
Immigration, along with health
riod is completed, and that employers There is general agreement that
care, energy, and financial regulation,
guarantee work to H-2A workers for the current immigration system is
is one of the complex and controver-
at least three-quarters of the contract “broken” and that reform is urgent-
sial issues that President Obama has
period they specify. ly needed. However, the status quo
promised to tackle. As with health
AgJOBS could presage a ma- persists because it is the second-best
care, the United States is among
jor change in the farm labor supply. solution for advocates who cannot
the highest spenders among OECD
Legalized farm workers may seek to achieve their first-best option. Ad-
countries on immigration control
fulfill their farm work requirement vocates may prefer legalization, but
and has some of the worst outcomes,
quickly, temporarily increasing the the status quo allows unauthorized
with the highest share of unauthor-
labor supply. As unauthorized farm foreigners to establish “equities” and
ized among foreign-born residents.
workers legalize and leave farm work, “roots” in the United States, includ-
As with energy, the long-term im-
replacement H-2A workers may cost ing via U.S.-born children, that they
plications of immigration reform are
farmers an additional $1 to $2 an hope will lead to eventual legaliza-
hard to predict. Finally, as with finan-
hour because of the housing allow- tion. Advocates who oppose legaliza-
cial regulation, economic interests are
ance. tion prefer the status quo in the hope
jockeying to protect their interests.
that current enforcement efforts will
eventually lead to “self deportation.”
PI5 - September 2009 POLICY ISSUES 5In the meantime, those at the core For More Information Martin, P. (1994). Good intentions
of illegal migration, unauthorized mi- gone awry: IRCA and U.S. agri-
Bush and Congress: Action? (2006,
grants themselves and their employ- culture. The Annals of the Acade-
January). Migration News, 12
ers, may prefer the status quo to some my of Political and Social Science.
(1). Available online: http://mi-
elements of reform. Most migrants (534): 44-57.
gration.ucdavis.edu/mn/more.
are able to get the higher wage jobs NAWS. National Agricultural Work-
php?id=3155_0_2_0
they seek, and most U.S. employers ers Survey. U.S. Department of
H-2A. Foreign Labor Certification.
find workers to fill their vacant jobs. Labor. Available online: www.
Available online: www.foreign-
Unless immigration reform “legalizes doleta.gov/agworker/naws.cfm
laborcert.doleta.gov/h-2a.cfm
the status quo,” both employers and OECD. (2009). International Migra-
Kandel, W. (2008). Profile of Hired
migrants have little incentive to offer tion Outlook 2009. Paris. OECD
Farmworkers, A 2008 Update.
support. Passel, J. and D’V. Cohn. (2009). A
Economic Research Report No.
These considerations mean that Portrait of Unauthorized Immi-
60, Economic Research Service,
immigration reform is likely to re- grants in the United States. Pew
U.S. Department of Agriculture.
main a distant dream, especially Hispanic Center. Available on-
Available online: www.ers.usda.
during the recession. Meanwhile, line: http://pewhispanic.org/re-
gov/Publications/ERR60/
newcomers will continue to arrive ports/report.php?ReportID=107
Martin, P. (2009). Importing Pov-
in rural and agricultural areas, filling Rural Migration News. Quarterly.
erty? Immigration and the
seasonal farm jobs and giving im- Migration Dialogue. Available
Changing Face of Rural Ameri-
migrants their first experience in the online: http://migration.ucdavis.
ca. Yale University Press. Avail-
U.S. labor market. The farm labor edu/rmn/
able online: http://yalepress.
market is likely to remain a revolving
yale.edu/yupbooks/book. Philip Martin (plmartin@ucdavis.edu)
door, admitting newcomers and later
asp?isbn=9780300139174 is Professor, Department of Agricultural
sending them on to nonfarm labor
markets. The status quo represents and Resource Economics, University of
a large-scale experiment for rural California, Davis.
America, testing whether the famed
engine of economic mobility will be
able to fill farm jobs and assure that
ex-farm workers and their children
find the economic opportunity that
drew them to the United States.
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