1. Labor shortages and input costs
Cobank 23. "Rural Economy Likely to Face Challenges in 2023: Here's Why". Lancaster Farming. 1-26-2023. https://www.lancasterfarming.com/farming-news/ag-business/rural-economy-likely-to-face-challenges-in-2023-heres-why/article_f6e04374-1f5b-5bcb-9f06-b5e37cd214e4.html
Specialty Crops: Drought, Labor Shortages, Strong Dollar Among Headwinds
Specialty crop growers and processors face a multitude of headwinds in 2023. Costs of water, labor, fertilizer and other inputs are rising while a strong U.S. dollar and weakening global economy drag on the U.S.’s ability to sell products abroad.
California in particular faces worsening conditions with the highest diesel prices and farm wages in the U.S. amid a worsening drought.
The drought has lifted the price of water to record highs as La Niña conditions persist into a third straight year. Tight labor availability will require growers to lean harder on H-2A workers or adopt more automation in the field.
Despite the headwinds, growers and processors will benefit from falling costs of shipping containers and fewer delays at ocean ports.