Labor costs for Washington farms rose 47% in 2023, the second-largest increase among large agricultural states and more than twice the national average, according to a USDA report on production expenses.

Washington farms on average spent $144,323 on labor, up from $97,727 in 2022. The USDA’s National Agricultural Statistics Service, which compiled the report, did not cite any reasons for the increase.

The USDA asked farmers to report wages, benefits and other expenses such as housing workers. Washington and other states with a large number of foreign farmworkers had the biggest increases in labor costs.

Florida, the state with the most H-2A workers in 2023, saw a 58% increase in labor costs. Labor costs rose 41% in California and 47% in Georgia, the states with the second- and third-most H-2A workers, respectively. Washington had the fourth-most.

The Department of Labor sets minimum wages for H-2A workers. Farmers who don’t have H-2A workers must pay the wage to draw U.S. workers, Washington State Tree Fruit Association President Jon DeVaney said.

“We’ve been seeing H-2A as driving wage increases faster than inflation,” he said.

USDA annually reports production expenditures nationally and for 15 large agricultural states, including Washington and California. Oregon and Idaho are not among the states.

Washington ranked third in spending per farm, trailing California and Nebraska. Iowa and Kansas round out the top five. Nebraska, Iowa and Kansas producers spent a lot on livestock and feed and relatively little on labor.

In spending on labor, Washington, California and Florida stood out among the 15 states. Labor made up 32% of production costs in Florida and Washington, and 30% in California. Wisconsin was next at 8%.

Nationwide, labor made up 10% of expenditures, the fourth-largest expense for U.S. farms.

Crop sizes influence labor costs from year to year, but the trend has been toward higher labor costs and lower revenue, DeVaney said.

Washington has always been a high-cost state for production, but growers have kept up by innovating and producing better products, he said. Lately, costs have been outpacing innovations, he said.

“Their labor costs are rising faster than their returns,” he said.

Washington labor costs declined 11% in 2020, but increased by 52% in 2021. Between 2021 and 2023, labor costs jumped 124%.

Another USDA report suggests overall labor costs are rising faster than gross wages. Wages for field workers in Washington and Oregon increased by 10% in 2023. The USDA combines the states for its wage report.

“I’d be doing a celebratory dance if workers were making 50% more, but that’s not the case,” said Washington agriculture consultant Erik Nicholson, a former United Farm Workers national vice president.

“I don’t know of any worker who’s seeing a corresponding increase in revenue,” he said.

Washington’s rise in labor costs coincided with phasing-in overtime for all farmworkers. Few farmworkers are getting more than 40 hours a week, said Nicholson, who founded Pandion Strategies after leaving the UFW.

“I can count on one hand, and I don’t need all my fingers, all the growers paying overtime,” he said.

The USDA’s Economic Research Service forecasts labor costs will rise 7.4% nationally this year, but that farm income will fall by 25%. Income fell by 16% in 2022.

Nicholson said the poor farm economy is hurting workers. “It’s really hard right now for workers. I’ve not seen a situation like this in 34 years of doing this,” he said.