Labor and Trade Woes Squeeze U.S. Specialty Crop Producers Amid Uncertainty
Specialty crop producers face rising costs and stalled growth as labor shortages and Trump-era tariff uncertainty compound financial pressure. Lawmakers are being pushed to act.
Labor constraints, rising input costs, and tariff volatility are threatening the viability of U.S. specialty crop producers, according to testimony heard Tuesday before the House Agriculture Committee. Producers called for urgent reforms to the H-2A guestworker program and voiced concerns over non-tariff trade barriers and rising equipment costs linked to tariff policies.
"Our business hasn't been materially affected by tariffs yet, but the uncertainty around them has already increased our costing," said Michael Frantz, president of Frantz Wholesale Nursery in Hickman, California. Representing AmericanHort, Frantz explained that the unpredictability of trade policy has forced him to raise prices-despite his operation relying heavily on European-sourced equipment and burlap now affected by tariffs.
He urged the administration to exempt specialty machinery from trade duties, but faced political pushback. Rep. Mary Miller (R-Ill.) defended the tariffs as tools to boost domestic manufacturing, saying, "We want to be producing our own equipment here."
Testifying on behalf of the International Fresh Produce Association, Dana Brennan of Grimmway Farms highlighted how non-tariff barriers-such as excessive residue limits and packaging standards-hinder U.S. produce exports, despite fresh produce being one of North America's most traded goods.
Improving working conditions for essential migrant farm workers
"Congress needs to step up and step in," Brennan said. "Bipartisan labor reform is overdue." She emphasized that immigration policy remains top of mind for specialty growers, who are "at the forefront" of the labor crisis.
Frantz echoed that sentiment, noting that a "lack of sufficient labor" is hampering product quality and preventing business expansion.
Committee Democrats criticized the Trump administration's immigration and trade stances. Rep. Angie Craig (D-Minn.), ranking member, said: "Labor costs are high. Production costs are driven up by tariffs or inputs that simply can't be sourced domestically. Trade wars are causing market turmoil."
Rep. John Mannion (D-N.Y.) added, "When trade relationships are fickle and labor rules change week to week, we are not serving our farmers well."
Republicans, meanwhile, targeted the adverse effect wage rate (AEWR) used in the H-2A program, calling it "artificially high." Rep. David Rouzer (R-N.C.) said the current wage structure drives up imports and forces small farms to close: "They can't make the numbers work, so they hang it up."
The USDA's decision to end the Farm Labor Survey, which determines AEWR rates, has added to the regulatory limbo as the Trump administration rewrites labor rules. Producers now face a murky outlook on wage compliance, complicating hiring plans ahead of key harvest periods.
As input costs climb, and as commodity prices remain volatile, the specialty crop sector-ranging from tree fruit to fresh vegetables-continues to shoulder a disproportionate burden of policy indecision.
Trade access, regulatory predictability, and workforce stability remain top demands from growers as Congress weighs its next steps. The hearing laid bare the urgent need for targeted policy updates that recognize the unique operational and labor demands of the specialty crop industry.
Without reforms, producers warned, the U.S. risks ceding ground in global markets and missing growth opportunities across rural America.
"Something's got to give, frankly," Brennan said. "And soon."