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Immigration Reform a Thorn in Agricultural Industry's Side

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H2 guest workers help keep American farms up and running.

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Arizona's new SB 1070 law, which makes it a state crime to be in the country without authorization, has underscored just how important H2 guest worker visas are to the agriculture industry.

A few years ago, the American Farm Bureau Federation reported that the lack of a viable guest worker program could cut annual farm revenues by approximately $9 billion.

Bob Stallman, president of the federation, wrote, "Of all major sectors of the US economy, agriculture is the most dependent on a migrant labor force."

He added, "Agriculture would face dire consequences if we were to lose our guest labor workforce. Would you prefer to eat food produced on American soil by migrant workers, or would you rather eat food produced on foreign soil by the same workers?"

Farmers are dependent on the migrant workforce. "We need them to milk cows or we'd barely be in business," Cochrane, Wisconsin dairy farmer Loren Wolfe told the Wisconsin Center for Investigative Journalism.

Guest workers who enter the United States on H2 visas are allowed to remain in the country for up to 10 months and pick the tomatoes that are made into the Heinz (HNZ) ketchup we buy at Walmart (WMT), process the milk used in McDonald's (MCD) shakes, pick the lettuce with which Burger King (BKC) tops its Whoppers, and sort the strawberries the J.M. Smucker Co. (SJM) turns into jam.

The Arizona law won't impact workers who are in the US legally under an H2 visa, but the farm industry is concerned that the increased scrutiny on immigration will impede their efforts to get the H2 program expanded. And the law could make it even more difficult to find labor.

"The H2 program achieves the goal of providing a sufficient workforce for growers," Mike Gempler, executive director of the Washington Growers League, tells Minyanville. "It helps the industry as a whole, stabilizing the workforce, and removes the risk of having your workforce disrupted at a critical period in the growing season. You may have only a few days to work with, and a farmer can't risk having half his workforce being taken away by Immigration just like that."

The bureaucracy standing between growers and much-needed labor can be daunting. To help navigate the red tape, companies have sprouted up to act as employment agents that have satellite offices in Mexico, where they help people obtain H2 visas, then help match employers with legal, H2-holding workers who are bused up to the States for a maximum period of ten months.

Bob Wingfield, who is president of one such agency, Dallas-based Amigos Labor Solutions, tells Minyanville that Americans don't want the jobs these guest workers have. "It's a fallacy that guest workers are sucking the system dry," he says.

Far from sucking the system dry, there actually aren't enough of them. In 2006, hundreds of millions of dollars worth of crops in Texas, Michigan, and California rotted in the fields because there were simply too few hands available.

Even contracted prison labor doesn't make up for the shortfall. Arizona watermelon farmer Jack Dixon told the Christian Science Monitor he lost 400 acres of fruit -- $640,000 worth -- because he couldn't get enough foreign guest workers approved for visas in time and only 3,300 prisoners (out of 37,000) under the supervision of the Arizona Department of Corrections are cleared to work outside.

Guest workers also contribute to the overall economy in farming communities, but those benefits are just one piece of the overall picture.

"Americans want a solution to our immigration dilemma, as do law enforcement officials across this nation. But the solution isn't turning every local police department into an arm of Immigration and Customs Enforcement," read an opinion piece in the Los Angeles Times last year.

The author?

Not Rachel Maddow.

Not the head of the Socialist Party of America.

It was William J. Bratton, former Los Angeles Chief of Police.

Put that in your pipe and smoke it -- right after you get done smoking the rich, flavorful Virginia tobacco that happened to be picked by a Mexican guest worker here on an H2 visa.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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