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By Don Jenkins, Capital Press

Washington farmers had the second-highest labor costs in the U.S. last year, behind only California and well ahead of any other state, according to the USDA Economic Research Service.

Washington agricultural employers spent $3.7 billion on labor, absorbing 8.2% of all U.S. farm labor costs. Labor made up 29% of all farm production expenses in Washington.

The USDA this month released state-level figures for 2025 farm income and expenses. California’s labor bill was $11.8 billion, but the state also ranked first in net farm income, $25.6 billion. Washington’s $1.7 billion net farm income ranked 28th, an improvement over 41st place in 2024.

Florida ranked third in labor costs at $2.74 billion and 15th in net farm income. Oregon was sixth in labor costs and 24th in net farm income, $2.4 billion. Idaho was 10th in labor costs and 16th in net farm income, $3.6 billion.

Washington’s agricultural overtime law, high number of foreign farmworkers and labor-intensive crops pushed up labor costs. Washington has ranked second in labor costs in nine of the past 10 years. Labor costs peaked at $4.6 billion in 2023.

Washington State Attorney General Nick Brown said in a report issued to mark Labor Day that the Legislature should give farmworkers collective-bargaining rights to negotiate for higher wages and better working conditions.

Washington farmworkers can form unions and strike, but they can’t force farmers to recognize unions or negotiate. The state House and Senate didn’t advance collective-bargaining bills this year, but the issue likely will come up again during the 2027 legislative session.

“I believe there is going to be something proposed, and we’ll have to work on it,” said Enrique Gastelum, CEO of the Worker and Farmer Labor Association, which recruits farmworkers.

Washington’s net farm income jumped to $1.7 billion from only $345.4 million in 2024. Nevertheless, cash receipts from crops, animals and animal products actually declined by 4.8%.

The state’s agricultural balance sheet benefited from a 225% increase in government payments.

Washington farmers also cut production expenses by 9%. Washington dropped to 12th in expenses from eighth in 2024.

Although farmers spent more on fertilizer, pesticides, fuel and electricity, purchases of livestock and poultry went down by almost 30%.

In a broader measure of agricultural finances, gross receipts of all types, including recording sales of inventory, exceeded production expenses by $1.2 billion, the 33rd highest in the country. In 2024, net operator returns were negative and Washington ranked last in that category.