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What would you pay for peace of mind that someone knowledgeable is making sure that things run smoothly on your farm?
A right-hand farm employee is often worth the investment. Determining an hourly wage or annual salary for a farmhand can be complex, though, as there are several factors to consider, including your own budget.
The 2024 U.S. Farm Employee Salaries Infographic from FBN® Finance includes a heat map of the average pay estimate per state for farm employees, hourly wage range estimates for the Midwest, and factors that contribute to determining employee salaries. Download it for free here.
In this post, we’ll cover:
Along the way, we’ll also explain how you can cover labor costs even when cash flow is tight.
As is the case for most jobs across industries, there is no set salary for agricultural workers that all farms follow. Thanks to more pay transparency laws that have been put in place in some states as well as websites that aggregate data, there is greater knowledge surrounding agricultural salaries. This helps employers and employees make informed decisions about what’s considered acceptable payment.
In 2024, pay rates for farm employees range from $7.72 an hour as the low hourly estimate in Florida to $32.05 an hour as the high estimate in North Dakota, according to research conducted through Indeed, ZipRecruiter, and NormSM.
Another way to look at salary data is by the overall average across the United States. The average pay for a farm hand in the United States is currently $17.25 an hour, according to Indeed. This is up from 2023's average of $16.69 an hour. The annual salary for farm hands in 2024 range from $45,862 to $81,812, according to Indeed. The average salary is $61,254, up from last year's $59,254.
The nationwide farm hand salary is $19 an hour, according to to ZipRecruiter. The job site lists the nationwide annual salary as $38,581.
While pay discrepancy may seem surprising given the push for transparency, there are a number of reasons why one farmhand may get paid $38,581 a year while another gets paid $81,812. Agricultural employers consider several factors when determining the salary they will pay employees.
Here are four considerations to keep in mind when determining salary.
Geography plays a role in compensation. This is because the cost of living can vary greatly across the United States.
The state with the lowest cost of living index in the nation, according to the World Population Review, is Mississippi, where it is 83.3. Here, the average rent for an apartment with two bedrooms is $991, and the median price for a single-family home comes to $140,818. Because the cost of living is lower here, salaries are lower here too. In Mississippi, a family of four has a median income of $70,656.
Meanwhile, the state with the highest cost of living index is Hawaii, where it’s 193.3. Here, the average rent for an apartment with two bedrooms is $2,399, and the median price for a single-family home comes to $730,511. In Hawaii, a family of four has a median income of $118,223.
Hourly rates and annual salaries for farm employees factor in the cost of living where the farm is located. Using our above examples, a farm hand in Mississippi earns an average salary of $44,279, while a farm hand in Hawaii earns an average salary of $75,283, according to Indeed.
Farm workers are expected to be able to perform a wide variety of tasks. Common responsibilities include planting, fertilizing, and scouting crops; harvesting crops and examining their quality; cleaning stables, pens, and coops; detecting health issues in livestock; and driving tractors and other farm equipment.
The number of years one has worked in agriculture and the level of experience they have are important to assess. For example, a newer farm worker may have general experience feeding and tending to cattle, while a farm employee with more years of work may have greater understanding of how to deal with such issues as respiratory disease in newborn calves.
A newer farm worker should not be financially docked for knowledge and skills that take time to acquire. They may be passionate and a fast learner. However, it’s worth rewarding accomplished professionals who not only don’t require extensive training and oversight but who also have first-hand experience that they can draw from to solve problems.
The average education level for an agricultural worker in the United States is ninth grade, according to the National Center for Farmworker Health, Inc. Only 14% have had higher education.
College is not required to be successful as a farm employee. As with many trade careers, the specialized training that farm employees need is often gained through hands-on experience or apprenticeships.
While there is a certain level of general knowledge and skills that farm employees should have, those who acquire specialized knowledge bring more authority to the position and can help ag operations reach their full potential.
Examples of specialized knowledge that a farm employee may possess include regenerative agriculture or organic farm best practices. These types of highly specialized skills won’t apply to all farms but can be incredibly useful on the right farm, so employers on specialized farms may wish to provide greater compensation to those workers with hard-to-find skill sets.
Today’s farms are becoming more technologically advanced. In 2020, the agricultural technology (Agtech) market value worldwide was $9.1 billion. By 2025, it’s expected to have more than doubled to $22.57 billion. However, in 2020, only 31% of agricultural workers performed technical tasks.
As Agtech grows, there will be a greater need for workers who are skilled, for example, in flying drones to gather imagery to check on the health of plants, using sensors to monitor soil conditions, and operating autonomous tractors.
Farm employees with technological skills command higher pay because they can perform tasks that other workers cannot do. For example, they may be able to make purchasing recommendations and decisions related to finding the right farm equipment.
Farm employees are vital to the success of a farm. Even as ag operations invest in robots to automate repetitive tasks on farms, skilled farm workers are needed to interpret data, oversee machinery, and add a personal touch to farm management.
It is therefore worth paying a farm employee not just a livable wage but one that takes into account the value they’re adding to the farm. In an era in which many workers change jobs frequently, having a competitive salary will help ensure worker loyalty.
There is no one-size fits all approach to paying farmhands. Considerations such as the farm’s geographic location and the farm employee’s level of experience, specialized knowledge, and technical skills can factor into determining a fair salary.
As well, benefits such as health coverage, disability insurance, paid time off, education and training, and profit sharing can be considered part of the overall payment package.
There are many costs associated with operating a farm, and cash flow can vary throughout the different seasons. Farmers look to ag financing solutions to not just cover their current expenses but also scale operations. That’s why more than 2,400 farmers have turned to FBN Finance.
FBN Finance offers a farm operating line of credit, typically ranging from $100,000 to $1,000,000, to help cover ag-related operating expenses. While some use this to fund ag input purchases for key products like seed and herbicides, purchase equipment, and pay rent, it can also be used to cover labor costs.
Rather than having to drive to the bank, you can apply easily online. It costs nothing to apply, and it’s a secure application process.
It’s also convenient and fast. This means less time spent talking to banks so that you can focus on what you do best on the farm. If you would like to speak to our team, though, our ag finance professionals are on call to walk you through each stage of the financing process. We’re here to support you on your journey to investing in your workers and scaling your business.
You can find more information about the FBN Finance farm operating line here, including answers to frequently asked questions.
Ready to get started right now? Apply here.
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Written by Stephanie Nikolopoulos, assisted by Norm℠.
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