New research from the National Farmers’ Federation has found that Aussie farms are losing as much as $2 million each year due to crippling workforce shortages.

It’s an issue the National Farmers’ Federation (NFF) has been advocating on for some time, but with only incremental success.

Australia’s farmers – particularly those in the horticulture industry – are being forced to leave their produce to rot on the vine or tree because they can’t get workers to harvest it.

New research has uncovered the growing extent of the problem, and the cost it imposes on farm businesses.

“The 2019
Farm Workforce Survey shines a light on the factors that influence Australia’s
labour supply challenges, as well as the consequences,” NFF President Fiona
Simson said.

“Agriculture’s labour woes are felt most acutely by the horticulture sector, where farmers need high volumes of low-skilled workers for concentrated periods of time. These roles have been going unfilled.

“More than
half of the survey respondents who were affected by labour shortages indicated
direct and indirect costs to their business as a result.”

According to
the survey results, single-farm losses due to labour shortages were as high as
$2 million.

“$2 million
is a staggering cost for any business to bear. We can’t continue to ignore this
problem in the face of these findings,” Ms Simson emphasised.

Employment status

Typically, international workers take up farm work via a Working
Holidaymaker Visa (often used by backpackers) or the Seasonal Worker Programme,
which provides employment opportunities to citizens of Pacific countries and
Timor Leste.

While both programmes are successful to an extent, they cannot
adequately meet agriculture’s labour needs, with only 12 per cent of the survey respondents using the Seasonal
Worker Programme.

“Most
farmers choose the allegedly easier, cheaper and less fraught employment option
of hiring workers directly and one fifth said they prefer to use labour-hire
contractors,” Ms Simson said.

63 per cent
of respondents opted to instead employ non-residents on their farms. Many said
it was necessary because permanent residents were either not available in
sufficient numbers, or found farm work too difficult or not to their liking.

In fact, farmers found that non-residents were largely perceived as more reliable than permanent residents. This is mainly because farm work is labour intensive, not available all year around and therefore not suited to some Australian job seekers.

“Australian
farmers are known to be fair employers and the stats show it, with almost all
of the survey respondents paying their employees more than what’s required by
the applicable Award.

“Annual
employment costs for most farmers range between $100,000 and $500,000 and in
some cases almost $2 million,” Ms Simson said.

The proposed
solution to Australia’s workforce woes

The NFF continues to call for an agriculture-specific visa to match
international workers with the jobs fruit and vegetable growers need filled.

“The programme would diversify the countries from which workers can be
sourced, and allow visa holders to move between different farm businesses –
depending where and when the work is available,” Ms Simson said.

“It’s intended to complement the Working
Holidaymaker Visa, the Seasonal Worker Programme and the many initiatives
designed to see more Australians take up farm jobs.”

CLICK HERE for more information about the Ag Visa.

The NFF Workforce Survey is conducted
annually, and intended to help form a clearer picture how Australian farmers
are affected by workforce issues, particularly those connected to labour supply
on farms. The information provided by respondents will facilitate a more
detailed analysis of policies and programs intended to ease the pressure of
labour shortages, providing a reference point for the NFF’s advocacy work on
behalf of farmers seeking to keep their businesses viable.

Source: The National Farmers’ Federation (NFF)