Washington State Tree Fruit Industry Faces Collapse Amidst Labor Crisis
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A deepening labor shortage and soaring costs are driving Washington state’s tree fruit growers out of business, threatening the future of a vital agricultural sector. Data from the United States Department of Agriculture Census of Agriculture reveals a significant decline in farms, with 3,700 operations lost between 2017 and 2022, and a 15% reduction in the number of farms actively producing tree fruit.
The Mounting Pressure on Farm Viability
The situation has reportedly worsened since 2022, according to grower representatives. The primary culprits are labor shortages and the escalating costs associated with the federal H-2A seasonal worker programme. Washington’s agricultural economy heavily relies on labor-intensive crops like apples, pears, and cherries, making it particularly vulnerable to these pressures.
Since 2013, the cost of labor to grow and harvest a single hectare of Washington apples has risen dramatically, while returns have stagnated. Farm income per hectare has seen only marginal increases over the same period. In 2013, labor expenses accounted for 37% of a grower’s revenue from fruit sales. However, by the 2023 season, those costs had ballooned to 108% of returns – meaning growers were spending more on labor than they earned from their fruit before factoring in other essential inputs like fuel and fertilizer.
Reliance on the H-2A Program Soars
To cope with the dwindling domestic workforce, growers have increasingly turned to the H-2A program. The number of H-2A workers employed in Washington more than doubled between 2017 and 2025, jumping from approximately 18,800 to over 38,700. While agricultural employment in the state fluctuates seasonally – ranging from around 65,000 workers in winter to nearly 145,000 during peak harvest – the reliance on temporary foreign labor is becoming increasingly pronounced.
The decline in traditional domestic labor sources is attributed to worker retirements and a decreasing number of U.S. citizens entering agricultural employment. The H-2A program mandates that growers first attempt to recruit domestic workers and pay the Adverse Effect Wage Rate (AEWR). In 2025, the AEWR was set at $19.82 per hour, a 19% premium over Washington’s minimum wage. Growers are also obligated to provide housing and transportation to H-2A workers, and extend the same benefits to any eligible domestic employees.
Costs Skyrocket, Domestic Participation Remains Low
Beyond wages, non-payroll labor costs for Washington apple growers have surged. In 2024, these costs averaged $1,312 per hectare, a nearly 500% increase since 2013. Despite the program’s requirements, domestic worker participation remains extremely limited. In fiscal year 2025, only 32 domestic workers applied for approximately 38,700 available H-2A positions.
In October, the U.S. Department of Labor introduced an Interim Final Rule aimed at adjusting the AEWR calculation. The revised methodology replaces a USDA survey with data from the Bureau of Labor Statistics and introduces wage differentiation based on skill level. It also factors in housing costs paid by domestic workers, using fair market rents. While growers acknowledge the rule addresses a portion of the cost imbalance, they emphasize that comprehensive legislative reforms are still needed.
Future of Washington Fruit Growing at Risk
Industry representatives warn that without further changes, the tree fruit sector could face continued closures, leading to increased dependence on imports from regions with lower labor standards. “The current situation is unsustainable,” stated a senior official. “We are rapidly approaching a point where it is simply no longer economically viable to grow fruit in Washington state.”
. The long-term consequences of this trend could extend beyond the agricultural sector, impacting the state’s economy and food security.
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