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Plan: Puerto Rico PYs 2020-2023
Unified Plan U

Section: Wagner-Peyser Act

Narrative: e. 2.

Published
Located in:

e. 2. An assessment of the agricultural activity in the State means: 1) Identifying the top five labor-intensive crops, the months of heavy activity, and the geographic area of prime activity; 2) Summarize the agricultural employers’ needs in the State (i.e. are they predominantly hiring local or foreign workers, are they expressing that there is a scarcity in the agricultural workforce); and 3) Identifying any economic, natural, or other factors that are affecting agriculture in the State or any projected factors that will affect agriculture in the State

Current Narrative:

In prior reports, it was estimated that Puerto Rico had 584,988 acres of cropland, with a total value of agriculture sales at approximately $548 million. However, those figures may no longer be considered accurate after the multiple natural disasters that devastated the territory between 2017 and January 2020. It is well known that while Puerto Rico was already struggling to cope with an extraordinary economic crisis, the entire territory was hit by two hurricanes in 2017, causing an unprecedented devastation and completely transforming not only the agricultural panorama, but also the overall way of living for the entire population.

On September 24, 2017, Hurricane Maria devastated over 80 percent of all the island's crops and severely damaged the island's dairy industry as well as the banana, plantain and coffee plantations. Prior to the natural disasters of 2017, Puerto Rico imported 85% of all its food and local agriculture supplied 15% of the remaining food items consumed in the territory. After Hurricane Maria, Puerto Rico has a 12% capacity of consumption. However, the food imports have increased to about 90% of all food items consumed by the ever-changing population. The agriculture in Puerto Rico impact is: 0.8% (2017 est.) Puerto Rico food crops impacted by this natural disaster include coffee, bananas, plantains, pineapples, tomatoes, avocados, cacao, spices, corn, mango, beans, peppers, yams and others.

Top five labor intensive crops, among others:

Table 59. USDA Census Agriculture 2012 and Estimate Loss

Products2012 (USDA Stat)%Local Food Production After Hurricane Maria2012 (USDA Stat) After Hurricane MariaEstimated Loss
Milk$189,400,000.0035%3.00%$37,880,000.00($151,520,000.00)
Plantain$80,500,000.0015%3.00%$16,100,000.00($64,400,000.00)
Vegetables and Melons$47,100,000.009%3.00%$9,420,000.00($37,680,000.00)
Poultry and Eggs$40,400,000.007%3.00%$8,080,000.00($32,320,000.00)
Nursey and Greenhouse$37,500,000.007%3.00%$7,500,000.00($30,000,000.00)
Other Agriculture Business$152,700,000.0028%3.00%$30,540,000.00($122,160,000.00)
 

Total:
$547,600,000.00  $109,520,000.00($438,080,000.00)

Source: USDA Census Agriculture 2012 and Estimated Loss of 80% after Hurricane Maria.

The coffee industry remains among the top ten agricultural commodities in order of economic importance in Puerto Rico. Before the hurricanes hit, there were about 10,000 coffee growers, of whom the vast majority were small and medium producers. Coffee growers were distributed in 22 municipalities in the central west region. The main municipalities engaged in the production of coffee were: Adjuntas, Jayuya, Lares, San Sebastian, Añasco, Guayanilla, Mayagüez, Orocovis, Ponce, San Germán, Ciales, Las Marías, Maricao, Utuado, Juana Diaz, Moca, Peñuelas, Villalba, Sabana Grande and Yauco. Hurricane Maria destroyed 85 percent of coffee farm harvests when it ravaged the island in September 2017, according to the Secretary of the Puerto Rico Department of Agriculture (PRDOA), Carlos Flores Ortega. Right before the storm, farmers were expecting the best harvest in 10 years, said Flores Ortega.” – NBC News.

According to the 2012 USDA Agricultural Census, which is the only currently available data at this time, (statistics for Puerto Rico 2017 Census are due to be released in June 2020), the agriculture industry in Puerto Rico is responsible for approximately 30,122 jobs on a permanent or temporary basis.

Recent studies have suggested there is a lack of young farmers and that 65% of the island's agriculture workforce is over 55 years of age.  As this trend continues its natural progression, the aging of our active agricultural employers, paired with a noticeable decrease in new farmers will have a significant negative impact on the island's agriculture in the coming decades.

Table 60. USDA Census Agriculture 2012

 Age Progression of Agricultural Employers in Puerto Rico

CategoryProducers%
35 to 64 Years7,91760%
65 years or Older4,73536%
Under 35 Years5074%
Total:13,159100%

Source: USDA Census Agriculture 2012.

At the time the last AOP was submitted, the Government of Puerto Rico was in the process of establishing very ambitious projects aimed to usher a new era of investment in the agricultural industry. Multiple initiatives were launched to revamp farm activity such as reestablishing traditional crops such as sugar cane and rice and increasing the acreages dedicated to the production of coffee. The PRDOA offered an array of incentives to agricultural employer to acquire farm supplies and equipment, provided subsidies and offered tax breaks resulting in more than 2,000 new farms been established. However, with the approval of PROMESA in 2016 new fiscal constraints are in effect and many incentive programs are under review by the Supervisory Board named under PROMESA.

According to PRDOLHR’s statistics, as of 2016, the total number of workers (not seasonally adjusted) was 21,000, revealing an increase in total workers with respect to prior years. However, that trend ceased suddenly as a result of the economic crisis experienced in Puerto Rico and aggravated by the natural disasters that followed. The same statistical report for agricultural employment (not seasonally adjusted) for the month of December 2019 shows a total of 18,000 workers, which reflects a decline of 4,000 agricultural workers.

Puerto Rico's agricultural employers’ needs are many because of the unpredictability of the weather, which makes it difficult to be fully prepared with enough workers available on the anticipated harvest dates. The most active period for agricultural employers in the coffee production sector is during the months of September and December. However, remarkable climate changes are altering these traditional dates and some growers need harvesters in January and February as well.  In addition, agricultural employers share the concern of not having year-round workers, the lack of transportation alternatives, and housing scarcity.

Agriculture constitutes about $808 million or about 0.8% of the island's gross domestic product (GDP). While most of the land is fertile, Puerto Rico imports 85% of the food it consumes. Only a mere 6% is arable; a fact that poses a direct threat to Puerto Rico's food security. This situation is due to a shift in priorities focusing on industrialization of the most productive areas mainly for the production of seeds, deficiencies in the management of available land, lack of programs to support the development of alternative agricultural methods, and a rapidly declining agricultural workforce. Puerto Rico's geographical location within the Caribbean exacerbates these issues, making the existing crops vulnerable to the devastating effects of Atlantic hurricanes. The USDA Statistics estimate $547,000,600 in Agricultural production for Puerto Rico. This represents a 32.23% margin of error as shown below:

USDA:$547,600,000
Economy of Puerto Rico:$808,000,000
Difference:$260,400,000
Margin of Error:32.23%

 

Table 61.Margin of Error Economy of Puerto Rico and USDA

Economy of Puerto RicoCurrent $%Estimated% + Margin of Error
Agriculture$808,000,0000.8%$905,800,0001.2%
Industry$50,601,000,00050.1%  
Services$49,591,000,00049.1%  
Total:$101,000,000,000    

The Southern part of the Island’s agricultural activities were the most impacted by the earthquake of January 7, 2020 and its thousands of aftershocks. These rare events created a unique situation for the agricultural community, as many growers faced the possibility of losing their crops because, although the crops themselves may not have been directly affected, many of the workers lost their homes and were forced to relocate too far from their work area. Many others remain in shelters but have no transportation to report to work.

The already difficult situation of a severe lack of workers turned into a real crisis forcing many agricultural employers, including coffee, banana and tomato growers, to go to social media to implore people for help in order to save their crops. The PRDOA coordinated the use of government vehicles to transport volunteer workers from the local shelters resulting in hundreds of people reporting to work in an act of solidarity.

On January 15, 2020, the PRDOA initiated a campaign with several municipalities in the southern area to recruit, interview and transport individuals with no experience to work for several agricultural employers. As stated to local media outlets by the Secretary of the PRDOA, participants were assured that their wages would not be counted against their eligibility for social service benefits, would receive credits towards an agricultural bonus and would be fully covered by Workers Compensation and Unemployment while receiving $7.24 an hour pay. 150 individuals reported to work saving some of the crops.  Nevertheless, large amounts of this year’s crops have been lost, causing millions of dollars in losses.

Another element to consider in the present volatile employment environment of the MSFWs in Puerto Rico is Public Law #87, approved on June 22, 1962 (Public Law #87). It allows employers to conduct active recruitment in Puerto Rico for work to be performed in the US mainland. These job offers are typically not for agricultural employment although every so often there are farming jobs and offers for landscaping, processing plants and food packagers. The job offers promoted under this law could be temporary or permanent in nature. The increase in this type of employment offers have significantly impacted the MSFWs in Puerto Rico because they are gravitating towards these jobs with better chance of permanency, much better salaries and the possibility of permanent relocation rather than pursuing the regular Interstate Job offers that are posted from other states under the ARS.

In 2019 and 2020 an influx of new and young farmers has been noticed. These farmers are mainly focused on small scale specialty farming, hydroponic farming and organic agriculture. There is a need for educational opportunities and incentives for these beginner farmers, for farmers looking to shift to new crops or alternative farming methods, and for MSFWs interested in becoming entrepreneurs. Directing more efforts and resources to these needs will promote the development of new agricultural employers and increase the employability of the MSFWs of Puerto Rico. In addition to these challenges, the agricultural community does not have up to date agricultural data. The lack of agriculture statistics is forcing farmers, private entities and government agencies to plan without adequate information on the current status of the agricultural industry.

The PRDOLHR, with the assistance of the SMA, will explore the possibilities of joining efforts with partners and organizations such as PathStone, the Puerto Rico Department of Education (PRDOE), the University of Puerto Rico Agricultural Extension, Puerto Rico Farm Bureau, the PRDOA and others, to create a series of orientation sessions to be offered in every region to promote existing and upcoming educational opportunities and incentives aimed to alleviate the above listed issues.