This week, President Donald Trump signed a series of executive orders targeting immigration policies. These measures are expected to significantly affect both documented and undocumented migrants in the United States. One sector particularly vulnerable to these changes is agriculture, which heavily depends on immigrant labor. To understand the potential impact on farmers, we spoke with Patrick Smith, CEO of Loftus Ranches, an apple and hops farm in Yakima, Washington. Smith shared insights into how these policy shifts could influence his operations and the broader agricultural community.

The Strain on Agricultural Labor Costs

Agriculture, especially fruit farming, relies heavily on seasonal workers, many of whom come through the H-2A visa program. For farms like Loftus Ranches, this program ensures access to the workforce necessary for harvesting crops. However, the rising costs associated with employing these workers are putting significant pressure on already tight profit margins. The Northwest Horticultural Council recently found that apple growers in Washington spent nearly all their revenue on labor alone, leaving little for other essential expenses.

In the past decade, labor costs have skyrocketed from 37% of per-bin revenue to an astounding 99%. This dramatic increase means that farmers are left with minimal funds to cover operational necessities such as fertilizers, taxes, water, and fuel. Patrick Smith highlighted the financial strain, emphasizing that operating with such slim margins is unsustainable. Farmers, being price takers, cannot control the market price of their produce, making it challenging to absorb escalating labor costs without passing them on to consumers.

Potential Policy Changes and Food Security

While the Trump administration’s stance on immigration remains uncertain, initial crackdowns suggest possible restrictions on legal immigration programs. Although H-2A workers are legally sponsored, broader policy changes could still pose risks. Secure farm labor is not only crucial for employers but also plays a vital role in national food security. American agriculture is a net exporter, and any constraints on legal immigration could have far-reaching implications beyond the farm level.

Patrick Smith stressed the importance of smart immigration policies that balance the needs of farmers and national interests. He pointed out that food security is intertwined with national security and trade negotiations. Limiting the availability of farm labor could disrupt supply chains and affect global trade dynamics. As the fourth generation to manage Loftus Ranches, Smith hopes to see policies that support sustainable farming practices and ensure the future of agriculture for the next generation.