The Challenges
Labor, government regulations, and weather are universal concerns in the Midwest and pretty much anywhere agriculture is a major industry. “One of the biggest concerns is available workers to harvest labor-intensive crops like apples,” Maglio says. “Immigration still perplexes legislators, and the effect is uncertainty within the growing community. A former tomato grower in Ohio has not planted in two years due to labor shortages.”
A Missouri shipper reported that in the case of some apple growers he deals with, conditions can be perfect for the crop, but if they can’t get enough people to harvest, they can’t pick and “have nothing.”
Even in California and Washington, which can offer workers longer harvesting seasons, it can be tough to have enough workers. For Midwestern growers, it is even more difficult to find seasonal workers who move from state to state.
While growers are fighting for labor, suppliers can be waging battles of their own. Sanson Company’s Zingale observes that the ‘sphere of competition’ is widening for the region’s receivers. “We’re competing with out-of-state distribution centers.”
Shipping Woes
A labor shortage of a different type affects shipping and logistics, where the lack of qualified drivers continues to affect rates. Total Quality Logistics’ Byrne says driver shortages are certainly a challenge for his business: “The shortage is real and impacts the entire industry. That, along with other government regulations, has certainly impacted capacity and rates.”
Another impact on shipping costs is driving age. “Raising the age of (truck) drivers to 21 has drastically reduced the pool of your drivers,” DeMatteis explains, adding, “Many potential drivers in the 18 to 21 age range opt for other careers instead.”
Clancy Sullivan, president of PAT Brokerage Company, Inc. in Des Moines, IA laments many of the changes and tighter restrictions ushered in by the Federal Motor Carrier Safety Administra-tion’s CSA (Compliance, Safety, Account-ability) program, rolling out over the last several years.
This includes the controversial hours of service rule change that went into effect in July 2013. “New trucking regulations,” says Sullivan, “cut into truckers’ productivity. It’s harder to get loads to their destinations in a timely manner.”
Whims of Mother Nature
Unpredictable weather also created both short- and long-term repercussions. The late freeze in Missouri destroyed 20 percent of the state’s peach crop, just as Ohio’s planting this year was pushed back by late cold and snow past mid-April.
