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American agriculture is warning Americans that the $12 trillion US economy could be forced to go on a big diet if further steps are taken against illegal immigrants. Immigrants are an important source of labour in a variety of industries including agriculture where Mexican immigrants make up a significant proportion of the labour force.
"To find and deport workers who are in the country right now would throw a wrench into the economy of the United States that would leave the public in disbelief," said Dave Ray, a spokesman for the American Meat Institute.
"What makes food so cheap in the United States is because we do things efficiently and if you wiped out that efficiency by creating unnecessary labour shortages, it essentially will foist a high food price on consumers," said Ray.
Chris Hurt an agricultural economist at Purdue University said the mobility of labour from Mexico has enabled the industry to stay in the US. He believes many companies would have relocated to other countries like Mexico.
World Perspectives, an agricultural consulting firm, estimates that 40% of all immigrants in the US work in agriculture. Of that, 25-75% of US farm workers are illegal immigrants.
A study by the American Farm Bureau Federation said a crackdown on illegal workers would cause production losses in the agriculture sector of $9 billion in the first three years, and a further $12 billion loss over four or more years.
Most immediate effects would be seen in the fruit and vegetable industries, but effects would be felt everywhere in the crop and animal feeding sectors. The most affected area would be the American Midwest.
"A few years ago the Immigration and Naturalization Service did a raid in Nebraska and it messed up the cattle market. It drove live cattle prices lower because there weren't enough employees in packing plants to run the cattle through," said World Perspective analyst Dave Juday.
