Labor Pains: Valuing Seasonal versus Year-Round Labor on Organic Farms
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Although organic farm activities seem to demand year-round employees, seasonal
workers dominate the organic labor market. We use the elasticity of complementarity to
assess input substitutability and predict adjustments. Farm size and farm workers are
complementary inputs. Incentives that encourage farmers to expand employment of year-round
and seasonal workers raise the marginal product and rates of return to organic
acreage in relative wage payments. A commitment to local sales reduces organic farm
incomes. A shift to local sales leads to decreased use of seasonal workers but at higher
wages, with smaller adjustments in the wages of year-round workers.