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# GRAPHIC: Agricultural labor costs are projected to rise by nearly 2% in 2023
- URL: https://www.investigatemidwest.org/graphic-agricultural-labor-costs-are-projected-to-rise-by-nearly-2-in-2023/
- Published: 2023-09-28T13:59:17.000Z
- Updated: 2026-09-23T18:11:17.000Z
- Description: Labor expenses are essential in agricultural production costs, especially for the crop production sector.
- Author: Mónica Cordero, Investigate Midwest
- Tags: Data Harvest, TP::Explainer, USDA, #wp, #wp-post, #Import 2026-06-18 04:56

In August, the USDA's Economic Research Service released forecasts indicating that overall cash labor expenditures within the U.S. agricultural sector are projected to reach $43.35 billion by the end of 2023.

This figure represents a 1.84% (equivalent to $780 million) increase from the previous year when adjusted for inflation to 2023 dollars.

Labor expenses are an essential factor in agricultural production costs. According to USDA, from every $100 spent on production expenses, nearly $10 goes to labor, which excludes non-cash employee compensation.

The USDA report points out that the animal production sector uses less hired labor in comparison to other subsectors of agriculture. While hired labor comprises two-thirds of total labor expenses for crop production, it constitutes only one-third for the animal production sector.

Crops such as fruits, vegetables and melons are more labor-intensive.