Quote:First of all, I'll admit my ignorance when it comes to how farms work and how labor is paid.

 

However, the part in bold is the very essence of capitalism.  If the pay needs to be higher in order to get reliable workers, then that's the issue that should be worked out between the farmer and the labor.

 

Now regarding your "simple" answer, here is a follow up question.  What happens if the price of hay goes up in order to compensate for the rise in labor cost?

That's how it works... If farmer Joe pays $8.50 an hour, and Farmer Ben pays $8.75, Farmer Mark pays $8.75 but Farmer Frank pays $12.50, who will generally always have enough employees? It's no different than any other type of employment or industry

 

Keep in mind some farmers have larger operations which allow for higher wages...Some farmers are specialized in one area, green beans, corn, beets, alphalfa etc so their income is limited to  the season they grow and harvest...Some farmers are more diversified and also milk cows for year round income, some raise beef, chickens, hogs for added income...

 

Now if the price of hay was increased then consumers would be forced to pay for that increase or do without...It could also be just the opposite if you use the example above...Farmer Frank has the highest payroll, so he's probably running pretty lean, Farmer Joe has the least overhead (according to payroll) so he may be able to absorb the increase and keep his hay price the same and sell more because he's selling it cheaper...

 

There are several answeres to your question

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