Featured Issue

Colorado's Agricultural Workforce Dynamics

By: Dawn Thilmany

  1. In 1997, the last Ag Census showed that Colorado farms hired over 46,000 workers (www.nass.usda.gov/co/), one of the few states to show increased hiring during the late 1990's.
  2. Colorado's green industry hired 52,000 workers in 2001, a marked increase over the past decade. (Ongoing CSU study)
  3. There is also increased employment in several allied food industries including ag services, dairy processing, sugar processing, and bakery products.
  4. 36 of Colorado's 63 counties had growth in Hispanic population that exceeded the US average growth rate of 58% during the 1990's. Nine of these counties (Lincoln, Yuma, Kit Carson, Washington, Cheyenne, Morgan, Weld and Logan) are also economies that are agribusiness dependent

Recently arrived immigrants and more established Hispanic households continue to be one of the most interesting threads woven into the discussions of the future of rural areas and the long-term viability of current worker needs and immigrant employment policies. The recent release of Census data for Colorado counties, as well as worker information from several industries that are common employers for recent immigrants, paint an interesting picture of the changing face of rural Colorado and the agricultural and green industry workforces.

Colorado Agricultural Workforce

There were 1.19 million hired workers on the nation's farms and ranches during the week of October 6-12, 2002, down 5 percent from a year ago (www.ers.usda.gov/Briefing/FarmLabor/). There were 935 thousand workers hired directly by farm operators nationwide, and over 16,000 workers in the Mountain II region that includes Colorado (including 10,000 that were employed 150 days or more) after peaking at 19,000 workers in July 2002. Agricultural service employees on farms and ranches made up the remaining 250 thousand workers nationwide. Mountain II region workers averaged only 35.7 hours per week, down significantly from 41.6 hours per week in July 2002. The Mountain region's worker numbers were down 5,000 from 21,000 in the previous October (where the average worker was paid for 43.5 hours per week).

US farm operators paid their hired workers an average wage rate of $8.93 per hour during the October 2002 survey week, up 34 cents from a year earlier. In Colorado's region, the average wage rate was $8.79, up from $8.08 paid in October 2001. The highest wage increases were paid by small producers (under $100,000 in sales) who reported paying an increased of almost $1 per hour in hourly wages. Hired farm worker wage rates were above a year ago in 12 of the 18 regions.

Colorado Farm Workers

During the last year when Ag Census data was collected, 1997, 9,394 farms hired 46,072 farmworkers and paid $263,603,000 in payroll (www.nass.usda.gov/co/). The average paid by a farm for each worker was $5721, but that does not control for workers who were employed by more than one farm or off-farm employers. This average also varies greatly based on the nature of the work. For farms where workers are only employed for 150 days or more (less than 20% of farms), average earnings were $13,209 whereas those farms that hired only seasonal workers (less than 150 days) paid workers an average of $1,501. Although previous estimates expected to see increased numbers of Colorado farmworkers in the 2002 Ag Census, the number of workers may decrease from the peak 2001 levels due to decreased production.

The Green Industry

The green industry is another industry that uses a large share of newly arrived immigrant and more established Hispanic workers. That industry encompasses ornamental plant production, sales, installation, landscape care and golf courses, and several other small economic sectors. A recent study of the industry by Colorado State University found that an average of 52,000 workers were employed by about 2000 firms in this industry, with a payroll of about $1.2 billion dollars, or a little over $23,000 per worker. Although the current drought has had an effect on growth, this industry still represents a large and vital part of the economy, and is an increasingly important competitor for workers among immigrants who once only viewed traditional agricultural operations as an initial employer in the U.S.

Agribusiness Employment

Beyond agricultural production, there are several related industries that are also important agricultural employers, and play a role in rural Hispanic employment opportunities. Figure 1 shows US and Colorado, Metro and Nonmetro agribusiness employment growth between 1990 and 1997 (www.ers.usda.gov/Data/FarmandRelatedEmployment/Industries.htm). The sectors with the greatest workforce size are included in the figure, while several processing and input supply sectors were left out of the comparison, but are included in the Total Employment figures. Total agricultural employment in Colorado was almost 370,000 workers in 1997, an increase of over 20% from 1990. In contrast, US agricultural employment growth was only 6% over the same period. The greatest growth in Colorado (and the US) was employment in ag services, with the greatest growth in nonmetro areas. In Colorado, there was also substantial growth in dairy product processing, sugar processing, indirect agribusiness and bakery products, while grain mill products experienced a large decrease in employment.

 

Hispanic Population Growth in Colorado

The significance and growth in Hispanic population varies greatly across counties, and there appears to be some relationship with agribusiness dependence and the growth of the Hispanic population. Figure 2 shows the presence of Hispanics in all counties that had a higher growth rate than the US average growth of 58% over the past decade (36 of the 63 counties), as well as the Colorado and US growth rates. Nine of these counties (Lincoln, Yuma, Kit Carson, Washington, Cheyenne, Morgan, Weld and Logan) are also economies that are agribusiness dependent (Hine, Garner and Hoag). Several of the other high growth counties are either in urban areas or tourist destinations with fast-growing service sectors.

 

Conclusions

Agricultural employment is down in 2002, most likely due to decreased production and revenues under severe drought conditions. Yet, this downturn runs counter to the general trend during the late 1990's that showed an increase in workers, wages and employers, even as the US showed lower farmworker numbers. This, together with the growth in green industry and allied agribusiness workforces suggests that agriculture will continue to be a major employer in this state and region. It is also interesting to note that wages are relatively high and increasing in Colorado, which would suggest either a higher quality (educated, more experience) workforce, or a tighter worker supply (which runs counter to the broader labor market).

Many believe the Hispanic population is closely tied to agricultural and related employment opportunities, and population change in Colorado and its counties would support that theory. Several of the most agribusiness dependent counties also saw marked increases in the Hispanic population during the 1990's. What still remains to be seen is whether Hispanics that gain experience and establish themselves in the workforce will remain in agriculture and rural counties, or migrate to less seasonal, better paying jobs in different areas of the state.

References

Hine, S.E., E. Garner, and D. Hoag. "Colorado's Agribusiness System: Its Contribution to the State Economy in 1997." Department of Agriculture and Resource Economics, Colorado State University. July 2000.

U.S. Department of Agriculture, National Agricultural Statistics Service. 1997 Census of Agriculture. Washington, D.C. March 1999.

U.S. Department of Agriculture and Colorado Department of Agriculture. Colorado Agricultural Statistics Service. "Colorado Agricultural Statistics." 1998

Updated Monday, August 29, 2011