Labour shortages are one of the main issues facing the agricultural sector. If we are going to feed the growing population, one solution is to increase agtech automation and innovation. But there is still a lack of access—and even resistance—to it in some agricultural communities.
This blog looks at some of the factors contributing to the labour shortage in farming and shows how agtech can help. But it’s also important to consider some people’s concerns around automation and the need for a ‘just transition’ in the industry.
What are the labour challenges in farming?
The growing global population means there is an ongoing need to increase agricultural production to meet demand. But the agricultural sector has been grappling with significant labour shortages for many years, posing challenges for crop production, food security and economic sustainability.
According to the American Farm Bureau Federation in 2024, there are around 2.4 million farm jobs needing to be filled in the US. And there is a similar picture elsewhere: in the UK in 2022, the National Farmers’ Union estimated there was a 14% shortage of labour.
The effects of labour shortages are sizeable and far-reaching. A study in California in 2019 showed that 31.3% of marketed yield was left in fields post-harvest, representing a significant amount of waste. This not only impacts farmers’ incomes but also contributes to global food insecurity and potential supply chain disruption. Plus, consumers are faced with higher food prices as supply dwindles while demand goes ever upwards.
This labour shortage – along with other major issues such as the changing climate – is providing an existential threat for the industry. For example, in the US between 2017 and 2022, there was a 7% decline in the number of farms. It is clearly an issue that requires our urgent attention.
Causes of labour shortages
Labour shortages are a result of many factors, which can vary between regions and over time but there are often several key factors:
1. Shifting migration patterns: In recent years, the governments of many countries have shown an aversion – perhaps even hostility – towards immigration. As a result, they have brought in policies to limit the number of immigrants, which unfortunately has had a major knock-on effect for farming because, traditionally, this sector has relied heavily on foreign workers. For example, in 2020 immigrants made up around 70% of the agricultural workforce in the US.
2. Demographic shifts: According to the 2017 US census of agriculture, the average age of the country’s farmers was nearly 60 and only 9% were under 35 years old. This is clearly not a healthy or sustainable position for an essential industry.
3. Economic factors: The relatively low wages and limited benefits often seen in the industry have made it difficult to attract and retain workers. For people looking to become farm owners, high land prices and the high cost of machinery can create a barrier to entry, while the variable nature of commodity crop pricing leads to financial uncertainty.
4. Social factors: The physically demanding nature of farm work in often harsh weather conditions turns many potential workers away. It is also a job that is likely to have a less favourable work–life balance than many other careers. Plus, increased access to education reduces the number of available unskilled labourers.
5. Increasing urbanisation and alternative employment opportunities: The lure of urban areas and the availability of alternative – often better paid – employment opportunities in sectors like manufacturing, construction and service industries have drawn potential workers away from agriculture.
How to solve labour shortages using agtech
Agtech covers a wide range of innovative solutions to increase efficiency, productivity and sustainability. It integrates cutting-edge technologies, such as robotics, AI, Internet of Things (IoT) devices and data analytics, into traditional farming practices. The scope of agtech extends from crop production and livestock management, to supply chain optimisation and environmental stewardship.
Currently deployed technologies include advanced sensors, autonomous machinery, biotechnology applications and sophisticated software platforms. These tools are transforming every aspect of agriculture, from soil preparation and planting, to harvesting and post-harvest processing.
1. Robotic harvesting
Harvesting robots use computer vision, machine-learning algorithms and advanced robotics to identify, select and harvest crops with minimal human intervention. Robots are being developed for various crops, including fruits, vegetables and grains.
Benefits:
- Reduced labour dependency, mitigating the impact of labour shortages
- Increased efficiency and productivity, with some systems operating 24/7
- Improved harvest quality and consistency
- Potential for selective harvesting, optimising crop maturity
Challenges:
- High initial costs, limiting adoption for smaller farms
- Possible limitations in handling delicate produce or navigating complex terrain
- Ongoing maintenance requirements
- Need for specialised technicians and operators
2. Precision agriculture
Here, data-driven insights are used to optimise farming practices. Drones and satellite imagery play a key role, providing high-resolution, real-time data on crop health, soil conditions and environmental factors.
Benefits:
- Optimised resource use, including fertilisers, pesticides and water, which saves money
- Reduced environmental impact through precise application of inputs
- Increased crop yields through targeted interventions
- Early detection of crop diseases and pest infestations
- Enhanced decision-making based on real-time data
Challenges:
- Complex data management and analysis requirements
- Need for technical expertise in interpreting and applying data insights
- Integration of multiple data sources and technologies
3. Automated irrigation systems
Smart irrigation systems combine sensors, weather data and AI algorithms to optimise water use. They can automatically adjust watering schedules and volumes based on real-time soil moisture levels, weather forecasts and crop needs.
Benefits:
- Labour savings through automated operation and monitoring
- Significant water conservation, reducing environmental impact and costs
- Improved crop health and yields through optimised water management
Challenges:
- Integration with existing irrigation infrastructure can be complex
- Potentially high initial investment costs, particularly for large farms
- Reliability of equipment and potential for system failures
4. Farm management software
Farm management software offers a comprehensive platform for planning, tracking and optimising all aspects of farm operations, including labour management, inventory control and financial planning.
Benefits:
- Enhanced labour management and resource allocation
- Streamlined operations and improved organisational efficiency
- Better decision-making through data analytics and reporting
- Improved traceability and compliance with regulatory requirements
Challenges:
- Barriers to adoption around cost and knowledge, especially for farmers who are less comfortable with technology
- Training needs for farm staff to effectively use the software
- Potential over-reliance on technology for critical decision-making
- Ongoing costs of software updates and maintenance
But there is resistance to automation
The automation that agtech brings is part of the answer to agricultural labour shortages, as it allows farmers to increase yield with less effort. But some people (particularly in Europe) are still suspicious. For example, there have been protests against automation, which bear similarities to previous objections against genetically modified organisms (GMOs).
The protests and arguments against automation often follow one or more of the following themes:
- Workers who are currently employed in farming are naturally fearful for their jobs in the long term, because they see themselves as being replaced by technology.
- There is a cultural context of resistance to agricultural innovations, particularly in Europe where there is perhaps a rather romantic notion of traditional farming, along with a general distrust of multinational corporations.
- Economic pressures – from high energy costs, low prices for crops and low-cost imports – are squeezing farmers like never before. Alongside this, modern agtech sometimes requires a substantial financial outlay, which might be beyond many small farmers.
So, there is a need to balance the adoption of these new technologies with addressing legitimate concerns. In other words, it requires a ‘just transition’ where the needs of those who are most affected – such as today’s workers and small-scale farmers – are carefully and adequately considered. There are clear parallels here with the environmental transition towards net zero.
Similarly, there is also need to engage farmers with the process so that they still feel in control. This is sometimes called the ‘IKEA effect’, where people tend to value things more if they contribute to creating them. The inconsiderate introduction of automation risks harming farmers’ and workers’ emotional investment and sense of control over operations. This means that a degree of ‘friction’ (e.g. adding in the need for human intervention) can be beneficial for the adoption of agtech – something that is perhaps counterintuitive as agtech is primarily focused on working faster and smarter.
Nevertheless, similar concerns have been raised during previous phases of innovation, such as around the use of motorised tractors. But the continued – not to mention vital – use of these vehicles today shows that it is possible to move the farming industry forwards.
Collaboration and outsourcing are key
There is also the question of how best to bring about the agtech revolution. The rapid development and implementation of agtech solutions require a collaborative approach between technology innovators and experienced electronics manufacturing services (EMS). Outsourcing production is crucial for bridging the gap between cutting-edge innovation and practical, field-ready solutions.
By combining the agtech sector’s pioneering ideas with the manufacturing expertise, industry knowledge and established distribution networks of EMS producers, it accelerates the adoption of these technologies. This collaboration not only helps in refining prototypes for real-world conditions but also ensures more cost-effective production and easier integration with existing farm equipment.
Ultimately, a partnership between innovators and manufacturers is key to bringing transformative agtech to market faster, making it more affordable for farmers of all scales and driving the sustainable evolution of the agricultural industry.
As the demand for food continues to rise with population growth, addressing labour shortages in agriculture is becoming an increasingly pressing issue for policymakers, farmers and stakeholders across the food supply chain. Agtech looks likely to be part of the solution.
