North Carolina’s agricultural sector faces a critical labor shortage driven by demographic shifts, declining interest in farm work among domestic workers, and regulatory challenges associated with hiring foreign labor. The sustainability of North Carolina’s agriculture depends on innovative and market-oriented solutions that reduce dependency on government intervention while ensuring a stable workforce.

Key Findings of Report:

  1. Labor Market Mismatch: The decline in domestic agricultural workers is partly due to urban migration, changing career preferences, and a cultural stigma surrounding farm labor. Efforts to revitalize interest in agriculture among younger generations require integrating agricultural education into K–12 programs, particularly through school choice initiatives and expanding FFA and 4-H participation in private and charter schools.
  2. Regulatory Challenges: The Adverse Effect Wage Rate (AEWR) and the H-2A visa program impose high costs and administrative burdens on farmers. Reforming these programs by decentralizing wage determination, streamlining application processes, and reducing employer obligations for housing and transportation can make hiring foreign workers more cost-effective and efficient.
  3. Technological Advancements: Automation and precision agriculture offer solutions to labor shortages, but adoption remains constrained by high costs, technological limitations, and the need for specialized training. While soybeans and pork production benefit from mechanization, crops like sweet potatoes still rely heavily on manual labor. Expanding access to ag-tech education and creating regulatory sandboxes for agricultural innovation can accelerate the adoption of labor-saving technologies.

Policy Recommendations:

  1. Reform AEWR and the H-2A: Adjust wage determinations to reflect local conditions, simplify the H-2A application process, give farmers greater flexibility to provide or help their laborers find housing options, and encourage private recruitment alternatives to make hiring more efficient and responsive to the market.
  2. Expand Agricultural Education in K–12 Schools: Enhance agricultural curricula in private and public schools, leverage school choice programs to encourage private schools to offer hands-on agricultural education, integrate agriculture into STEM programs, and increase FFA and 4-H access.
  3. Encourage Technological Innovation: Reduce regulatory barriers for ag-tech investment, expand the state’s regulatory sandbox to include agriculture, and promote workforce training in trade schools and community colleges.
  4. Reduce State-Level Regulatory Burdens: Reduce or eliminate occupational licensing for farm work, ease zoning laws for on-farm housing, and shorten the current regulatory review process to eliminate outdated rules.

This report shows that by embracing market-driven approaches that prioritize flexibility, competition, and innovation, North Carolina can address labor shortages effectively without expanding government intervention. A combination of education, immigration reform, technological investment, and deregulation will be essential in securing the future of North Carolina’s agricultural workforce.