Farm labor - Nov. 21

From today's USDA farm labor report:



There were 1,117,000 hired workers on the Nation's farms and ranches during the week of October 12-18, 2008, down 3 percent from a year ago. Of these hired workers, 801,000 workers were hired directly by farm operators. Agricultural service employees on farms and ranches made up the remaining 316,000 workers.

Farm operators paid their hired workers an average wage of $10.70 per hour during the October 2008 reference week, up 32 cents from a year earlier. Field workers received an average of $10.05 per hour, up 43 cents from last October, while livestock workers earned $10.19 per hour compared with $10.02 a year earlier. The field and livestock worker combined wage rate, at $10.08 per hour, was up 35 cents from last year. The number of hours worked averaged 41.3 hours for hired workers during the survey week, down 2 percent from a year ago.

The largest decreases in the number of hired workers from last year occurred in California, the Corn Belt I (Illinois, Indiana, and Ohio), Southern Plains (Oklahoma and Texas), Appalachian II (Kentucky, Tennessee, and West Virginia), and Appalachian I (North Carolina and Virginia) regions. In California, lack of available irrigation water caused much acreage to be left allow. Planted acreage of cotton, dry beans, and sugar beets declined sharply from 2007. Therefore, the demand for field workers was considerably lower. Wet conditions in the Corn Belt I, Southern Plains, and the Appalachian I and II regions, compared with the previous year's drier reference week, decreased the need for field workers. Lower cattle inventories in the Appalachian regions led to fewer livestock workers being needed.

The largest increases in the number of hired workers from last year occurred in the Pacific (Oregon and Washington), Corn Belt II (Iowa and Missouri),Northeast I (New England and New York), Delta (Arkansas, Louisiana, and Mississippi), and Mountain II (Colorado, Nevada, and Utah) regions. In the Pacific region, increased acreage of cherries, berries, and grapes heightened the demand for hired workers. Despite wetter conditions in the Corn Belt IIregion, compared with the previous year's reference week, increased acreage of major field crops kept the demand for hired workers above last year. In the Northeast I region, drier conditions compared with the previous year's reference week led to a stronger demand for hired workers. In the Delta region, larger cattle and hog inventories increased the demand for livestock workers. Movement of cattle from summer pastures in the Mountain II region
was increasing. Therefore, more livestock workers were necessary.

The 2008 U.S. all hired worker annual average wage rate was $10.59 per hour, up 4 percent from the 2007 annual average wage rate of $10.23 per hour. The U.S. field worker annual average wage rate was $9.78 per hour, up 38 cents from last year's annual average. The field and livestock worker combined annual average wage rate at the U.S. level was $9.89 per hour, up 4 percent from last year's annual average wage rate of $9.49 per hour.

Food for thought v. Perishable thought

I must say that I have enjoyed a recent "Google Gadget" addition to Fresh Talk called "Food for thought."

I realize some may think I am attempting to mimic the "Perishable thought of the day" (by the way, why not "imperishable thought of the day"?). I've enjoyed what Jim has done with that feature, though I think he overthinks some of the submissions (note his recent over-the- top research into the source of a submitted Lincoln quote)

"Food for thought" is much less ponderous and weighed down by unneeded comment . It is simply there, perhaps penetrating our consciousness, and ultimately asking us to give our internal assent. Consider these for today:


"We can forgive you for killing our sons. But we will never forgive you for making us kill yours."
- Golda Meir, to Anwar Saddat just before the peace talks


"The petty economies of the rich are just as amazing as the silly extravagances of the poor."
- William Feather


TK: In a nod to my decidedly sparse life outside of produce, this is what is on my bookshelf the last couple of weeks:
Nickel and dimed (On not getting by in America) - Barbara Ehrenreich
What's so great about Christianity - Dinesh D'Souza
I am America and so can you - Stephen Colbert

Apple turnover - a visit with Desmond O'Rourke

Visiting with apple country economist Desmond O'Rourke yesterday, I asked him about the mood among apple growers and shippers.

Of course, I remarked about the Nov. 1 inventory report (covered by Andy Nelson in the Nov. 17 issue of The Packer) and Des remarked the late harvest in Washington picked out longer than expected. The packed fresh crop is now estimated at 109 million cartons, up from 98 million cartons a year ago.

O'Rourke said fujis, golden delicious and granny smith inventories were all up about 20% compared with year ago levels and figure to be under the most pressure. Galas have been heavily sold already, and reds appear to be in decent shape.

On the world scence, he said Europe and China are also talking about bigger than expected crops. The Chinese apple crop is now pegged at 28 million metric tons significantly higher than earlier expectations.

Another reality weighing on the apple market is the fact that California's navel orange crop is much larger than a year ago, so apple face more competition in a tougher economic environment.

Des asked if I had paid attention to the "Operation Mainstreet" program, which Wal-Mart announced earlier this month as a scheme to bring savings to its consumers in time for the Christmas season. He speculated that one of ways that Wal-Mart will do this squeeze their suppliers. Most the press I've read about Operation Mainstreet refers to its impact on consumer electronics, but I don't doubt Wal-Mart will ask concessions of produce shippers as well.

"Either they cut their margin, or reduce what they pay suppliers," O'Rourke noted. Come to think of it, Wal-Mart's first play will be suppliers...

Back to apples.

Despite the recent shift in market psychology, Des beleives apples should be in decent shape during a recession. Not too many people will cut out apples from their produce purchases - kiwanos, yes, red delicious, no - unless perhaps they are newly unemployed and cutting out all produce purchases.

Looking ahead, O'Rourke said one unknown is whether the credit crunch could reach apple country. While most farm lenders have said the banking industry's troubles shouldn't impact well run ag businesses, O'Rourke said it is uncertain how local banks will handle credit renewals for grower-shippers considering continuing U.S. economic trouble and the larger apple crop size.

"There have been some big chinks in the market during the last couple of months," he said.