John Carney — What's Really Behind the Decline in Mexican Farm Workers?

"US farmers will need to offer higher wages to induce new workers to migrate northward to US farm jobs," write Taylor and Charlton.

But the farm lobby has another idea. Instead of paying the workers larger shares of farm revenues, they want to pay them with citizenship....

From the point of view of farm owners, the nice thing about granting legal residency to farm workers is that they get to increase the value of a laborer's compensation without increasing what the farm owner has to pay. The farm profits stay private but the labor costs are socialized.

Expanding the guest worker visa program is great for farmers because it effectively blocks out non-farm competition for these workers. In fact, one of the farm lobby groups is proposing requiring multiyear contracts in exchange for legal residency. They don't have to worry about workers being lured away by factories or retail outlets or construction jobs because the terms of their visa lock them in to farm work.

In short, the farm lobby's response to increased competition for Mexican labor is to pay workers with U.S. citizenship and prevent other businesses from competing for these workers. Which makes perfect sense. Why improve working conditions or pay workers competitive wages when you can just get the government to bail out your noncompetitive compensation?

CNBC NetNet
What's Really Behind the Decline in Mexican Farm Workers?
John Carney | Senior Editor