More than Plowing the Fields- Farming Jobs in Southeast Minnesota

by Brent Pearson - brent.pearson@state.mn.us
November 2010

For two consecutive quarters (fourth quarter 2009 and first quarter 2010) employment in crop production in southeast Minnesota has been higher than comparable quarters for the past 10 years. Consequently, a fourth quarter spike in 2009 raised the annual average quarterly employment in crop production higher than at any other point in the past 10 years.[1] Part of this increase is from the availability of more comprehensive data, but increases in farm-production jobs in key counties have also led the charge.

Animal-production jobs are also up, rising 34.3 percent in southeast Minnesota during the past decade. With farm production temporarily on the rise, supporting industries play a key role in distributing, transporting and producing farm-based goods.[2] Essentially, there is more diversity in farm-based jobs across the region than ever before.

Defining a Labor Market Sector

According to the U.S. Bureau of Labor Statistics (BLS), the North American Industry Classification System (NAICS) qualifies crop and animal production under the “Agriculture, Forestry, Fishing and Hunting” sector. While growing crops and raising animals are typically considered key aspects of crop farms, dairy farms and ranches, the industry also includes greenhouses, nurseries, orchards and hatcheries.

But the farming industry is more diverse than that. Farms can be owned and farmed by an individual, partnership or corporation. Some farms are rented. Many employ the services of croppers, managers, equipment operators, greenhouse and nursery laborers, and tractor-trailer drivers. With so many different types of employment in agriculture, farm jobs are as diverse as the industry itself.

Supporting the Agriculture Industry

The economy of agriculture in southeast Minnesota is as diverse as it is broad. Agricultural-based workers have a unique and varied set of skills that tie them to the land but do not necessarily bind them there. A quick glance at the Occupational Employment Statistics — produced by the Minnesota Department of Employment and Economic Development (DEED) and viewable at www.PositivelyMinnesota.com/oes — offers insight into the state of farm-based occupations. Long past the notion that farm-based work involves only tilling soil, southeast Minnesota is ripe with farm jobs waiting to be harvested. Those careers — including agricultural inspectors, graders and sorters of agricultural products in food processing plants, agricultural equipment operators, and first-line supervisors of farms and food processing facilities — require diverse skill sets, break down industry barriers and branch into other occupations.

As long as there are farmers tilling the land, food processors producing consumable food products, and consumers in need of food products, there will be a need for transport of those goods. While the notions that supply creates demand and production creates consumption are the pillars of any strong economy, emerging technologies may be changing how Minnesotans reinforce those pillars. Food transportation heavily defines the trucking industry, while animal production fuels meat processing and food manufacturing plants. Placing those goods directly in the hands of consumers is often done through warehouses, distribution centers and retailers. Consequently, southeast Minnesota has a strong presence in trucking and food manufacturing employment.

Transporting Goods

Goods are transported by two types of trucking classifications under the BLS Standard Occupational Code (SOC):

• Truck Drivers, Heavy and Tractor Trailer
• Driver/Sales Workers

Heavy and tractor-trailer truck drivers drive a tractor-trailer combination or a truck with a capacity of at least 26,000 Gross Vehicle Weight to transport and deliver goods, livestock, or materials in liquid, loose or packaged form. They outnumber driver/sales workers by nearly 73 percent across the region.[3]

Trucks do not transport only farm-based products, but where there is a heavy agricultural base and ample food-processing and livestock facilities, there will be high employment numbers in the trucking industry. In fact, southeast Minnesota (Economic Development Region 10) ranks second in number of people employed in the industry (see Table 1 and Map 1). There is certainly a correlation between sheer volume of employees and population as each of the four highest ranked Economic Development Regions (EDRs) in Minnesota is within, or borders, the seven-county Twin Cities metro region (EDR 11). This indicates that a vital pipeline between goods and services in southeast Minnesota and the Twin Cities has been established. Additionally, southeast Minnesota ranks fourth in median wage for heavy trucking and tractor-trailer drivers. These numbers seem to indicate a strong link between location, population and delivery of farm-based products.

Consuming Goods

Consumable farm goods are available in retail grocery stores and restaurants. While many retailers import farm-based products from wholesalers across the nation and the globe, availability at a regional level is vital to reducing costs to consumers and growing the local economy. In southeast Minnesota 13,135 people are employed in food services and drinking establishments. Additionally, 4,503 were employed in 99 grocery stores across southeast Minnesota in the first quarter of 2010.[4] These numbers indicate a relatively strong demand for farm-based consumables across the region.

Manufacturing Farm-Based Goods

Food manufacturing in southeast Minnesota netted 9,586 jobs in 98 facilities during the first quarter of 2010. For comparison, only the seven counties in the Twin Cities metro area had higher food manufacturing employment numbers (9,919 in 262 facilities). The disparity between the comparisons is that an average food manufacturing establishment in southeast Minnesota employed nearly 98 workers! The majority of those workers were employed by animal slaughtering and processing facilities (4,573), grain and oilseed milling facilities (1,470) and manufacturers of fruit and vegetable products (1,307) (see Table 2).

The Future of Agriculture in Southeast Minnesota

Let’s suppose, for a moment, that at any point along the logistics of supply-chain economics of farm-based products, advances in technology revolutionize or even eliminate key links. Futurist David Zach posed this concept to statewide economic developers at the DEED Development Conference in September. While the idea of looking ahead is not foreign to most economic developers, let’s consider his concept for a moment. If, for example, hydroponic bays installed in kitchens of homes eliminate the need for commercial transportation and sale of vegetables, what happens to our regional agricultural economy? Is it diverse enough to survive these changes, or will the industry become redefined? Or, do advances in farm-based technology necessitate invention? Emerging technologies and high current demand for trucking and combined food-preparation and -service work may define the agriculture industry in 2011 and beyond. While forecasts such as these must be taken with a grain or two of salt, labor market analysts, career counselors and job service professionals must pay close attention to trends in order to begin thinking about how the labor market will be defined in 2011 and beyond.

Minnesota employment projections for 2016 indicate a loss of 5.7 percent in agriculture, forestry, fishing and hunting jobs. While this is still 2.6 percent below national projected losses, the trend toward agriculture in the labor market is not up. The spike in employment above 10-year trends for two quarters is encouraging but long-term projections are not encouraging[5] (see Table 3).

Short-term numbers indicate a rebound in farm-based employment. With a strong trucking, retail grocery and food manufacturing presence, southeast Minnesota’s regional economy and labor market would be well served if this were to become a trend. In spite of long-term projected losses, changes in thinking and perhaps technological innovation can help redefine the industry and reshape the employment landscape for farm-based products.

[1]Minnesota Department of Employment and Economic Development Quarterly Census of Employment and Wages (QCEW)
[2] Ibid.
[3] Ibid.
[4] Ibid.
[5] DEED Employment Projections 2006-2016

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