A view from Jeremy Ostrander, CEO of AgriVision Equipment & PrairieLand Partners - September/October

As I write this column over Labor Day weekend, I reflect on the blessings of our labors. We enjoy this day that was put into law by President Grover Cleveland in 1895, as an annual celebration of the social and economic achievements of American workers. Our country, our states, and our communities are blessed today because of the toils of many of those that came before us. So why are we seeing such a labor shortage in recent years? I hear many grumbling about it, so I thought I would shed some light on this challenge, and what some future solutions will be. I may as well take this one head on and cut to the chase…..this challenge is not going away in the next 10-15 years!

Demographic Drought - 2020 was just an accelerant. The people shortage was already coming before the Covid pandemic. All of the chaos of 2020 simply sped up the effects of a long-term problem that has been ignored by media and government alike. Baby Boomers, defined as people born from 1946 to 1964, were just about to reach their peak retirement rate. So when masks, health risks, and stress increased at work, many of them opted to punch their retirement ticket a little earlier. As the largest generation in American history retires, it is simple math. It is going to cause a shortage of labor. This generation will be missed deeply in the workforce. Record Low Participation – The % of those 16 and older participating in the workforce peaked in early 2000 at 67.3% and has gradually been falling to its current level of 62.1%. Couple this with the record low US fertility rate (births per woman) of 1.782 and we have a longer-term problem. Simple math says that we need to be at or above 2.000 to simply maintain our population, without immigration.

Solutions - If long-term population decline is now here, what do we do? Where there is a problem, there is a solution. I will touch briefly on a few possible solutions. Training & Development – When AgriVision Equipment and PrairieLand Partners embarked on this joint venture at the beginning of the year, one of the key drivers was a combined larger investment in recruiting, training, and developing the future of agriculture, our most valued asset, our people. In October we will be opening a 20,000 sq ft training facility focused on additional technician development. In the next 12 months, we will also be announcing some new partnerships with Colleges and Universities to increase the number of Parts, Service, Sales, and Technology recruits. Farms, businesses, and communities need to prepare for a new and different recruiting equation. Together, we can do this! Automation and Autonomy – In the next 24 months, you will see many solutions from us that reduce the need for labor on your farm. The foundation for this has been laid and the future is exciting.

Immigration – While this is a touchy subject, this country was founded on immigration. Agriculture today is very dependent on immigration. China, Japan, and the European Union have a much bigger problem than the US, as their populations are rapidly declining. Declining populations mean that their industrial strength is weakening, if not already over. If we want to keep our Agricultural and Industrial strength in America, it takes labor. As we elect future government officials, we would be wise to elect people that have an understanding of how to solve the labor problem, which likely includes giving American citizens a reason to work and supplementing the workforce with immigrant labor, without destroying the foundation of America. There is a right way to do this. I hope that this helps you understand the math element behind the challenges we are all seeing whether it be in restaurants, school bus driver shortages, or in your farm or business. As I wrap this up, I want to share a bible verse that gives me encouragement, “I have seen personally what is the only beneficial and appropriate course of action for people: to eat and drink, and find enjoyment in all their hard work on earth during the few days of their life that God has given them.” (Ecclesiastes 5:18) May you and your family have a safe and productive harvest!