ATHENS, Ga. (RFD-TV)— U.S. fruit and vegetable growers are facing intensifying pressure from both imports and rising costs, according to University of Georgia economists.
The U.S. Department of Agriculture (USDA) projects 2025 cash receipts for all crops at $236.6 billion, down 2.5 percent from last year, with vegetable revenues expected to decline even as consumer demand remains strong. Imports continue to surge, reaching $49.8 billion in 2024—about one-quarter of all agricultural imports—compared to just $15.9 billion in exports.
Mexico dominates U.S. vegetable imports, while Canada, Peru, and Chile are key fruit suppliers, often shipping into U.S. harvest windows and depressing domestic prices.
At the same time, growers face soaring costs. The USDA estimates that farm production expenses will reach $467 billion in 2025, up 2.6 percent from the previous year and more than 36 percent higher than in 2018.
Fruits and vegetables are labor-intensive, and reliance on the H-2A guest worker program means higher wages, fees, and compliance burdens. In 2024, 44% of growers cited H-2A costs as their top concern, while 54 percent reported labor shortages.
Tony’s Farm-Level Takeaway: U.S. produce growers face a structural disadvantage—cheaper imports driving down prices while rising labor costs squeeze margins. Without new policies or technology, profitability remains uncertain.
With core input inflation still hovering high, growers and retailers should plan pricing and promotions with tighter margins in mind — target early sales, leverage bundle deals, and secure logistics ahead of peak Halloween demand.
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