ACA will raise cost of farm labor--and therefore food
The New York Times reported today about the consequences of the Affordable Care Act (ACA) for the cost of farm labor and, in turn, the cost of food. Sarah Varney's story is set in California, where farm laborers are typically employed year round rather than seasonally, as the case in many other places. (Another post about year-round ag workers is here ). This means farm labor contractors cannot easily put the "workers on a 28-hour workweek like Starbucks, Denny's and Walmart are considering" doing to avoid the ACA mandate. It also means that the contractors, who operate on very small margins--around 2%--will have to raise the prices they charge farms, which will in turn push up food prices. Varney writes: Insurance brokers and health providers familiar with California's $43.5 billion agricultural industry estimate that meeting the law's minimum health plan requirement will cost about $1 per hour employee worked in the field. ...