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Monday at 5:30PM: How Washington farmers are grappling with growing costs

Central Washington farming

As the growing season begins in Central Washington, farmers are hoping for relief from the financial stress that has made the Evergreen State’s agricultural industry the least profitable in the entire nation.

In 2023, profits were $1.2 billion. In 2024, they were $293 million in debt in 2024.

“Overall, our prices that we’re getting paid are the same as it was 30 years ago, but our costs, our prices getting paid here, and our costs are clear up here. So anybody can do that math,” said Blaine Smith, the owner of Bountiful Orchards in Chelan County.

Smith told KIRO 7 News that wage increases have put pressure on profits. He said that the pandemic and the recent immigration crackdown have made it difficult to find workers. It means relying on the H2A guest worker program, which also requires farmers to provide housing and transportation costs.

In 2022, Washington also modified the state’s overtime wage laws to include farm and crop workers. While the change was phased in, it upended a system where workers were paid per piece picked, where workers would work long days and close to double the 40-hour a week minimum.

“If [farm owners] can afford it, then we’ll be happy to work overtime. Now that they are not making any profit, all the guys are working just 40 hours a week, and that’s it,” said Gilberto Cacho, an orchard worker.

“If they want to make more hours, now they’ve got to go get a second or third job somewhere else,” Smith echoed.

A Washington State University study found that an average box of Honeycrisp apples costs growers $54 for a box to produce, though the market only pays $40 for it. So, who is getting the profit? And what are the drastic measures farmers are taking in order to stay afloat? Tune into KIRO 7 News at 5:30 on Monday.

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