Dr. Maurice Eastridge, Extension Dairy Specialist, Department of Animal Sciences, The Ohio State University
The USDA National Agricultural Statistics (NASS) publishes the Farm Labor report twice annually (May and November). Some of the data from the November 2015 report is provided in Table 1. The wages reported in the table do not include any benefits. The national average for hours worked per week was about 42 in October 2015. The average hourly wages was higher for field versus livestock labor. Over the period of one year from October 2014 to October 2015, the average hourly wage for a field worker increased 6.9% in the cornbelt and 5.1% nationally. For the same time period, the hourly wage for a livestock worker increased 4.4% in the cornbelt and 6.5% nationally. For about every $100,000 increase in gross sales on a farm in the US for 2015, the hourly wage increased by about $0.12/hr. For about every $100,000 increase in gross sales on a farm in the Cornbelt for the same time period, the hourly wage increased by about $0.22/hr. So for both populations, hourly wage increased with gross sales on a farm, reflective of both farm productivity and farm size. We need to be aware of competitive opportunities for employees on dairy farms, even within agriculture. In addition, the total wages and benefits provided for livestock employees need to be compared to other agricultural and non-agricultural employment opportunities. Although milk and beef prices are not very favorable at this time, we need to make sure competitive wages are paid to be able to hire and retain dependable skilled labor on dairy farms. Feed and labor are the two largest costs of producing milk, thus labor management is key to a farm’s success.
Table 1. Farm labor in the cornbelt and US during 2014 and 2015.1
Item |
Cornbelt I (IN, IL, OH) |
US |
|
|
|
October 2015 |
|
|
Hours worked/wk |
39.4 |
41.7 |
Field labor, $/hr |
12.63 |
12.11 |
Livestock labor, $/hr |
11.68 |
12.02 |
October 2014 |
|
|
Hours worked/wk |
37.8 |
41.3 |
Field labor, $/hr |
11.82 |
11.52 |
Livestock labor, $/hr |
11.19 |
11.29 |
Hourly wages (4/hr) by gross sales in 2015 ($1,000) |
Corn belt I & II (IA, MO) |
|
< 50 |
11.92 |
11.60 |
50 to 99 |
11.37 |
11.54 |
100 to 249 |
12.31 |
11.90 |
250 to 499 |
12.62 |
12.28 |
500 to 999 |
13.22 |
12.42 |
1000+ |
13.46 |
13.24 |
|
|
|
1Data taken from USDA, National Agricultural Statistics Service
(http://www.nass.usda.gov/Surveys/Guide_to_NASS_Surveys/Farm_Labor/index.php)