Work Force Panel Zeroes In On Ag Labor Shortage

The Ag Business Council’s July 21 webinar was a panel discussion focused on workforce development. Farm labor shortage is top-of-mind for just about everyone involved in the agriculture industry in the Kansas City region.  As the Council notes, agriculture is vital to the local Kansas City economy, with a $24.5 billion impact on the region and the 98.7 million jobs it supports.  “The entire value chain – from farm to fork – is experiencing one of the most significant talent shortages in recent history,” said Atwater in her opening remarks of the virtual symposium.

One way agriculture is facing the challenge is through different solutions for longstanding problems. Panel participants offered several perspectives on the situation. Kansas Secretary of Agriculture Mike Beam said that “rural folks have to get past inputs and drought [problems]” and key on labor. Shonda Atwater from the Kansas Department of Commerce  – and moderator of the Council event – was somewhat upbeat, pointing out that production has increased in 2022, “which is testament to the resourcefulness of ag people.”

Chris Kuehl, director of Armada Corporate Intelligence, delved into economic and financial fundamentals to conclude that “agriculture is more important than ever.” He said Fed funds rates are still expected to remain “accommodative,” unlike the 1980s. The dollar continues to gain strength which signals robust importing activity – “but it could make the U.S less competitive.”  Dr. Kuehl maintains that a significant reason for farm labor shortages is because in the last five years 26 million farming-Boomers have retired. That’s an almost unsurmountable loss.  That perspective also contrasts with oft-cited reasons – such as low wages, untenable visa regulations, lack of rural housing, schools and daycare services – that discourage workers from seeking farm jobs.  

Several panelists focused their remarks more on how ag careers have to be promoted in high school and college. Two educators on the panel described new programs under development at the State Technical College of Missouri and at Agriculture Future of America. Dr. Shawn Strong described how STC enhances students’ learning potential by providing them with specialized courses in traditional and emerging technical areas that foster a life of learning. The school’s mission is to prepare students for satisfying, profitable careers working for an employer or as a self-employed individual or an entrepreneur. Dr. Mark Stewart, AFA’s CEO, explained his organization is gearing programs and curricula in agriculture to make it as “exciting as NASA.” But he said students still need an understanding of the basics. “Tech experts can be astute regarding their advanced technology, but they might not know how to operate a clutch pedal on a spreader” Dr. Stewart says his team looks at ways to balance high tech instruction with mechanical proficiency. Can a young savant immersed in high technology be equally excited about taking apart a Briggs and Stratton engine, he asked.

Matt Wolters, CEO of Atwood, Kansas-based SurePoint Ag Systems, takes on farm labor shortages by the horns.  As a rural inhabitant all his life, Wolters considers himself and his neighbors rugged individualists who solve problems on their own. If lack of adequate housing in rural areas is an impediment to hiring, then his solution is to build spec houses on individual or jointly-owned property. Waiting for local, state and federal authorities to introduce policies and programs is not part of SurePoint’s strategy. The company recently entered a joint venture with Deere & Company.

Leigh Ann Taylor Knight, president, DeBruce Foundation wrapped up the discussion with a peek into the future. People are going to be living longer lives, yet most kids DeBruce research has found are only considering two or three job-types over a longer career span.  She suggested society and economies should look at education systems from a business perspective.

Two months prior to the Council’s webinar, the Federal Reserve Bank of Kansas City held its annual Agricultural Symposium entitled Help Wanted in Agriculture.  The two-day symposium at the KC Fed’s headquarters examined the role of labor in determining the long-term outlook for agriculture and related businesses, how policies will shape that outlook and what the potential is for structural change. “By many metrics, the labor market appears to be unusually tight,” said Esther George, president and CEO of the Federal Reserve Bank of Kansas City. “The number of posted job vacancies is the highest on record. Hiring and retaining workers is an acute challenge.”