Labor Department Warns Immigration Crackdown Could Spark Food Shortages, Soaring Prices As Farm Workers Vanish

The Labor Department has quietly acknowledged that the Donald Trump administration’s aggressive immigration policies could disrupt U.S. agriculture, driving food shortages and higher prices for consumers.

Labor Department Flags Immigration Crackdown Risks To US Agriculture

In a filing published Oct. 2 in the Federal Register, the Labor Department warned that the near halt of undocumented worker inflows, combined with stricter enforcement, "presents a sufficient risk of supply shock-induced food shortages to justify immediate implementation" of a new H-2A visa rule. 

The program allows temporary foreign workers for agriculture, and the department emphasized that American workers are unlikely to replace them.

Shortage Of American Farm Workers Could Threaten Food Supply

"In addition, the Department does not believe American workers currently unemployed or marginally employed will make themselves readily available in sufficient numbers to replace large numbers of aliens no longer entering the country," the filing stated. 

Foreign-born workers account for roughly 38% of jobs in farming, fishing, and forestry, and the Labor Department estimates that 42% of crop workers are now unable or unwilling to work due to the crackdown. 

The agency noted that agricultural labor is physically demanding, involves long hours, and exposes workers to extreme weather, contributing to a persistent shortage of willing U.S. workers.

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Trump’s Immigration, Trade Policies Drive Inflation

Earlier this month, the Trump administration faced legal and economic pushback over its immigration and trade policies.

A proposed $100,000 fee on new H-1B visas prompted a lawsuit from unions, universities, and employers, who argued it undermined a program vital to the U.S. tech and research sectors.

In August, Sen. Elizabeth Warren (D-Mass.) criticized Trump's tariffs, noting that wholesale vegetable prices had jumped 40% in July, the largest one-month summer increase in nearly a century.

In the same month, Moody's chief economist Mark Zandi warned that Trump's immigration policies, including daily deportations, could push inflation from 2.5% to nearly 4% by early next year.

He cited rising producer prices and a shrinking foreign-born workforce as driving costs across agriculture, construction, retail, and elder care.

The White House denied that deportations caused inflation, emphasizing gains for native-born workers, but economists expressed concern that labor shortages could continue to raise costs and destabilize markets.

Now Read:

• ‘Collapse In Immigration’ Poses A Bigger Economic Threat Than Trump’s Tariffs

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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