Agricultural labor expenses forecast to increase by almost 2 percent in 2023

Vertical bar and line chart showing expenses and percent annual change from 2000 forecast through 2023.

Total cash labor expenses for the U.S. agriculture sector are forecast to be $43.35 billion for 2023, based on the August 2023 forecast by USDA, Economic Research Service. This would be an increase of $0.78 billion, or 1.8 percent, over the 2022 level of $42.57 billion (in inflation-adjusted 2023 dollars). The projected 2023 level would remain below the high set in 2017 in inflation-adjusted labor expenses. Labor expenses are an important component of agricultural production costs. For every $100 spent on production expenses, almost $10 goes toward labor. Total labor expenses include contract and hired labor payments but exclude non-cash employee compensation. This information updates information in the Amber Waves article U.S. Agriculture Labor Expenses Forecast To Increase More Than 4 Percent in 2023, published in July 2023.

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