Professional Documents
Culture Documents
Production and Marketing Reports
Production and Marketing Reports
Production and Marketing Reports
W
ith the tightening in the and greenhouse industry is facing a These tend to be relatively low-paying
regulations regarding mi- critical shortage of labor (Posadas jobs, with median wages in 2010
grant workers, the nursery et al., 2004). Migrant labor issues are amounting to $8.98 per hour or
388 • June 2012 22(3)
$18,690 per year (O*Net Online, labor markets faced by the nursery and horticulture production firms’ TR, an-
2012), making it difficult for man- greenhouse industry, this article evalu- nual employment, workers’ earnings,
agers to compete for and retain ated the economic impacts associated safety, skill levels, and retention rates.
workers in currently tight domestic with mechanization and automation by The general hypothesis of the empirical
labor markets. Many commercial op- using socioeconomic databases col- models is that if the estimated coeffi-
erations have employed immigrant lected in previous surveys. The specific cient, slope, or first derivative of the
labor, which is mostly less skilled, to objective of this article was to measure estimated empirical equation with re-
meet their rising labor requirements. the economic impacts of mechaniza- spect to the average level of mechani-
The nursery migrant workforce are tion or automation on the horticulture zation is not statistically different from
employed, on average 6 months, and firms’ total revenues (TR), annual zero, then mechanization has a neutral
most stayed for 10 months (Mathers employment, and workers’ earnings, effect on the designated economic
et al., 2010). In the long run, there is skills, training, safety, and retention variable. The economic impacts of
a need to increase the skill level of rates. the other variables included in each of
these migrant workers to improve This article is a spatially, tempo- the models were also measured by the
wage rates, recruitment, and reten- rally, and analytically expanded ver- same procedure.
tion of workers. sion of an earlier article which covered The average LOAM (AVELOAM)
Mechanization of an operation 87 growers located in the three north- of all the identified major tasks per-
can provide mechanical power, speed, ern Gulf of Mexico states (Posadas formed by workers in each nursery or
repetition, safety, and a greater po- et al., 2008). With the data collected greenhouse was used in the empirical
tential for consistency and quality by face-to-face interviews of nurseries models instead of the specific LOAM
control. Mechanization is normally and greenhouses, multiple linear re- of each individual task identified in
defined as the replacement of a human gression analysis was applied to esti- the survey. The use of the specific
task with a machine (Giacomelli, mate empirical models to measure the LOAM in each individual task per-
2002). Automation includes these socioeconomic impact of automation formed by workers in each nursery or
attributes, but with greater flexibility or mechanization on annual gross sales; greenhouse resulted to errors in es-
and, potentially, some automated de- annual employment; and workers’ timation because there was insuffi-
cision making (Giacomelli, 2002). But earnings, safety, and retention. In this cient number of observations. The
true automation encompasses more article, there are more southern states formula used in estimating the aver-
than mechanization. Automation in- included in the study (eight vs. three age level of mechanization of all the
volves the entire process, including states), covered a longer period (2003 identified major tasks performed by
bringing material to and from the to 2007 vs. 2003 to 2009), and in- workers in each nursery or green-
mechanized equipment. It normally cluded more producers (87 vs. 215 house is as follows:
involves integrating several opera- growers). Because of the longer pe- P19
tions and ensuring that the different riod covered in the study, this article n=1 LOAM
AVELOAM = ;
pieces of equipment communicate used deflated values of annual gross N
with one another to ensure smooth sales and total workers’ earnings and
operation. Many times, true automa- hourly wage rates and also added the where LOAM = level of mechanization
tion requires reevaluating and chang- interview date as an explanatory vari- or automation in each specific task
ing current processes rather than able. Additional variant models were performed by workers in each nursery
simply mechanizing them (Porter, estimated where the number of full- or greenhouse and N = number of
2002). The possible benefits associated time equivalent (FTE) workers was tasks performed by workers in each
with automation were summarized segregated into permanent workers nursery or greenhouse. The specific
by Ling (1994) as follows: reduce (PW) and part-time workers (PTW). tasks performed by workers in nurser-
manual labor requirement, improve The segregation allowed for the com- ies and greenhouses that were included
production quality, eliminate haz- parison of the VMP of the PW and in the survey are listed in Table 1.
ardous working conditions, reduce PTW. The TR of nurseries and green-
production costs, increase market houses were derived from the mid-
value, and improve professional es- point of the annual gross sales category
teem. Simonton (1992) concluded
Empirical models reported by each participating nursery
that the benefits and incentives to To evaluate the economic impacts or greenhouse operation. The TR
automate are significant and in- of mechanization or automation, em- were deflated by the consumer price
clude improving the safety of the pirical models were estimated for the index (CPI, 2009 = 100) to convert
work force and the environment,
along with ensuring sufficient pro-
ductivity to compete in today’s global Units
market. To convert U.S. to SI, To convert SI to U.S.,
Given the above-mentioned ex- multiply by U.S. unit SI unit multiply by
pected benefits and the tightening 0.01 % gg–1 100
10 % gkg–1 0.1
10 % gL–1 0.1
Coastal Research and Extension Center, Mississippi 10 % mgg–1 0.1
State University, 1815 Popps Ferry Road, Biloxi, MS 10 % mLL–1 0.1
39532 1 % mL/100 mL 1
1
Corresponding author. Email: benp@ext.msstate.edu. 0.4047 acre(s) ha 2.4711
Table 1. Proportion of the major tasks performed with some form of automation annual man-hours employed (TMH)
or mechanization by workers employed in nurseries and greenhouses by type of multiplied by the reported hourly
operation. The respondents were asked to describe, in percentage of terms, the wage rate. The TWE was deflated by
level of automation or mechanization in each of the major tasks performed in the CPI with the year 2009 as base
their respective nursery or greenhouse operations.
year. The marginal workers’ earnings
Proportion of Proportion of impact (MWEI) was expected to be
tasks in tasks in positive, indicating that the VMP of
Workers’ tasks nurseries (%) greenhouses (%) labor was enhanced as a result of
Media preparation 28.44 25.82 mechanization or automation. The
Filling containers with substrate 28.54 34.28 MWEI hypothesis was tested using
Cutting and seed collection N/Az 0.28 the following empirical model:
Cutting and seed preparation N/A 2.66
Placing plant liners, sticking cuttings and 8.76 12.66 TWE = B0 + B1 AVELOAM + B2 FTE
planting seed + B3 ACRE + B4 YEARS
Environmental control N/A 47.16 + B5 NURSERY
Moving containers from potting to transport 14.92 N/A + B6 GREENHOUSE
vehicle for movement within the nursery
+ B7 PERCENT + B8 DATE + E:
Transporting containers to field in nurseries 31.91 N/A
Removing containers from transport vehicle 2.78 N/A
This empirical TWE model is sim-
and placing in the field
ilar to Posadas et al. (2008) except with
Spacing of plants and containers 4.02 N/A
the use of deflated values of workers’
Harvesting and grading production N/A 0.00
earnings, addition of the interview date
Picking plants up and loading onto transport 10.61 N/A
as explanatory variable, and estimation
vehicle at time of sale
of a variant model where the number of
Removal of plants from transport vehicle and 7.75 N/A
FTE workers was broken down into
placing in holding area awaiting shipment
PW and PTW. The separation of the
Picking up plants from holding area/transport 11.23 N/A
number of FTE workers allowed for
trailers and loading onto delivery vehicles
the comparison of the marginal earn-
Jamming plants for winter protection 0.00 N/A
ings of the PW and PTW.
Plant pruning 13.10 N/A
Annual employment was mea-
Fertilizer application 16.12 39.45
sured in terms of the number of FTE
Pesticide application 24.70 30.63
workers, which was equal to the sum
Irrigation application and management 51.81 56.82
of the number of PW and one-half the
All workers’ tasks included in the survey 17.51 25.48
number of PTW. The total man-
The socioeconomic survey was conducted among randomly selected wholesale nurseries and greenhouses located
in eight, selected southern U.S. states from Dec. 2003 to Nov. 2009. hours employed were computed from
z
Not applicable because this question was not asked to this group. the number of FTE workers multi-
plied by the number of working hours
values to a recent base year. The CPI equivalent workers (number), ACRE = each month. The TEI was expected to
measures the changes in the prices area in production (acres), YEARS = be negative, indicating a labor-saving
paid for a representative basket of period since establishment (years), characteristic of automation or mech-
goods and services (Bureau of Labor NURSERY = nursery-only operations, anization. The TEI hypothesis was
Statistics, 2012a). The marginal reve- GREENHOUSE = greenhouse-only evaluated using the following empir-
nue impact (MRI) of mechanization operations, PERCENT = area used in ical model:
or automation was expected to be production (percent), DATE = date of
positive, indicating that horticulture interview, and E = error term. This FTE; PW; PTW or TMH
production firms that experienced empirical TR model is similar to = B0 + B1 AVELOAM
higher levels of production or sales Posadas et al. (2008) except for the + B2 DEFWAGER + B3 ACRE
would also demonstrate advanced use of deflated values, the addition of + B4 YEARS + B5 NURSERY
LOAMs. To test the MRI hypothesis, the interview date, and the estimation
+ B6 GREENHOUSE
the TR empirical model was estimated of an additional variant model where
using the following formulation: the number of FTE workers was seg- + B7 PERCENT + B8 DATE + E;
regated into PW and PTW. The seg-
regation of FTE workers allowed for where DEFWAGER = deflated hourly
TR = B0 + B1 AVELOAM + B2 FTE
the comparison of the VMP of the PW wage rate (dollars). The empirical FTE
+ B3 ACRE + B4 YEARS and PTW. The regression results with workers, PW, PTW, or TMH model is
+ B5 NURSERY the separation of FTE workers into comparable to Posadas et al. (2008)
+ B6 GREENHOUSE PW and PTW in all the empirical with the addition of the interview date
+ B7 PERCENT + B8 DATE + E; models were not presented in table as explanatory variable, a model varia-
form but were cited in the text as part tion where the dependent variable FTE
of the overall discussion. workers was broken down into PW and
where B0 = constant term, Bi = re- The total earnings of workers PTW, and use of deflated wage rate.
gression coefficients, FTE = full-time (TWE) were derived from the total The division of FTE workers allowed
390 • June 2012 22(3)
for the comparison of the impacts of mechanization. The TTI hypothesis nursery or greenhouse for the past 2
mechanization on the employment of was tested using the following empir- years before the interviews. Gabbard
PW and PTW. ical model: and Perloff (1997) reported that
Workers’ skills (WS) were mea- farmworkers are more likely to
sured in terms of the percentage of TT = B0 + B1 AVELOAM + B2 FTE return to employers who offer ben-
new workers hired having basic hor- + B3 ACRE + B4 YEARS efits, pay by the hour, provide good
ticultural skills. The WS impact (WSI) + B5 NURSERY working conditions, and hire directly.
was expected to be negative, indicat- The WRI was expected to be positive
+ B6 GREENHOUSE
ing reduced requirements for manual because automation or mechaniza-
workers arising from automation or + B7 PERCENT + B8 DATE tion would improve professional es-
mechanization. The WSI hypothesis + B9 WS + B110 RETURN teem and work satisfaction as a result
was evaluated using the following + B11 MEDIUM + B12 LARGE of better and safer working condi-
empirical model: tions. The WRI hypothesis was
+ B13 SUPER + E:
tested using the following empirical
model:
WS = B0 + B1 AVELOAM + B2 FTE The empirical TT model is equiv-
+ B3 ACRE + B4 YEARS
alent to Posadas et al. (2008) with the
addition of the interview date, the RETURN = B0 + B1 AVELOAM
+ B5 NURSERY three farm sizes as explanatory vari- + B2 FTE + B3 ACRE
+ B6 GREENHOUSE ables, and a variation where the in- + B4 YEARS
+ B7 PERCENT + B8 DATE dependent variable FTE workers was
+ B5 NURSERY
+ B9 RETURN + B10 MEDIUM separated into PW and PTW.
Workers’ safety was measured in +B6 GREENHOUSE
+ B11 LARGE + B12 SUPER + E;
terms of the number of man-hours lost + B7 PERCENT + B8 DATE
(MHL) due to work-related injuries
+ B9 REST + B10 HOUSING
and number of work-related injuries
where RETURN = workers who were + B11 INSURANCE
reported (WRIR) the year before the
employed in the same nursery the pre-
interviews were conducted. The work- + B12 RETIREMENT
vious year (percent), MEDIUM = op-
ers’ safety impact (WYI) was expected
erations with annual sales between + B13 MEDIUM
to be positive because automation or
$250,000 and $499,999, LARGE = + B14 LARGE
mechanization would eliminate haz-
operations with annual sales be-
ardous working conditions. The WYI + B15 SUPER + E;
tween $500,000 and $999,999, and
hypothesis was tested using the follow-
SUPER = operations with annual sales
ing empirical models:
of $1,000,000 and above. The size of where REST = workers with access
the nursery and greenhouse opera- MHL or WRI to rest and lounging areas (percent),
tions was measured by the reported = B0 + B1 AVELOAM HOUSING = workers provided
annual gross sales. The dummy vari- with housing benefits (percent),
ables representing the various sizes of + B2 FTE + B3 ACRE + B4 YEARS INSURANCE = workers provided
the nursery and greenhouse operations + B5 NURSERY with medical and dental insurance
were based on the annual gross sales + B6 GREENHOUSE (percent), and RETIREMENT =
reported by the wholesale growers. workers provided with retirement
These annual gross sales categories + B7 PERCENT + B8 DATE
benefits (percent). The empirical
were based on the suggestions made + B9 WS + B10 TRAIN1 WRI model is analogous to Posadas
by Hoppe et al. (2007) which included + B11 TRAIN2 et al. (2008) with the addition of the
the following: less than $250,000, interview date and the three farm
+ B12 MEDIUM + B13 LARGE
$250,000 to $499,999, $500,000 to sizes as explanatory variables, and a
$999,999, and more than $1,000,000. + B14 SUPER + E; model variation where the indepen-
The empirical WS model is analogous dent variable FTE workers was di-
to Posadas et al. (2008) with the where TRAIN1 = workers trained vided into PW and PTW.
addition of the interview date, the on chemical and pesticide application The empirical models were es-
three farm sizes as explanatory vari- (percent) and TRAIN2 = workers timated by using the multiple linear
ables, and a variation where the in- trained on basic horticultural skills (per- regression method. All the regres-
dependent variable FTE workers was cent). The empirical MHL and WRIR sion analyses were performed by
broken down into PW and PTW. models are comparable to Posadas et al. using EViews 6 (Quantitative Micro
Training time (TT) was deter- (2008) with the addition of the in- Software, Irvine, CA). The descrip-
mined by the length of the basic train- terview date and the three farm sizes tive statistics about mechanization,
ing period for the newly hired workers. as explanatory variables, and a model socioeconomic characteristics, and
The workers’ TT impact (TTI) was variation where the independent vari- percentage distribution of nurseries
indeterminate depending on the need able FTE workers was segmented into and greenhouses by annual gross
for increased training in the han- PW and PTW. sales and types of operations were
dling of specialized equipment and Workers’ retention rates were computed by using SPSS (version
the lower requirement for manual expressed as a percentage of the work- 19.0 for Windows; IBM Corporation,
workers as a result of automation or ers who were employed in the same Armonk, NY).
• June 2012 22(3) 391
PRODUCTION AND MARKETING REPORTS
Data collection and analysis using only the nurseries in counties completed with wholesale nurseries
The face-to-face socioeconomic from Alachua County and north. The (N = 88), greenhouses (N = 52) and
survey of wholesale nurseries and green- wholesale growers in each state in- mixed nursery/greenhouse operations
houses in eight southern states— cluded in the survey were identified (N = 75) in Mississippi (32), Louisiana
Mississippi, Alabama, Louisiana, Flor- and numbered from 1 to N. Using (29), Alabama (26), Florida (27),
ida, Tennessee, South Carolina, North Excel (Office 2003; Microsoft Corpo- Tennessee (17), South Carolina (30),
Carolina, and Georgia—was conduct- ration, Redmond, WA), 50 random North Carolina (30), and Georgia (24).
ed between Dec. 2003 and Nov. 2009 integers were individually generated The socioeconomic panel data
(Fig. 1). This length of time was re- from 1 to N, where N = the number consisted of variables dealing with
quired due to the distance traveled to of wholesale growers in each state. labor, technical, and economic infor-
complete the surveys, and the availabil- Individual letters of introduction mation about the nurseries and green-
ity of the growers to meet one-on-one were sent to the 50 selected nurseries houses in the eight southern states.
with the survey administrator. Official and greenhouses in each state in The workers’ demographic character-
lists of certified nurseries were retrieved advance. Follow-up telephone calls istics included among others race, age,
from Mississippi Department of Agri- were made to each of the nurseries gender, and formal education com-
culture and Commerce (2003), Ala- and greenhouses selected to deter- pleted. The operational characteris-
bama Department of Agriculture and mine their willingness to participate tics included but not limited to labor
Industries (2004), Louisiana Depart- and their availability for the inter- use, growing area, number of green-
ment of Agriculture and Forestry views. All personal interviews were houses, nursery operations, and an-
(2003), South Carolina Department conducted by the research associate nual gross sales. Previous reports
of Agriculture (2006), Florida Depart- hired for this purpose by the Missis- using the above-mentioned databases
ment of Agriculture and Consumer sippi State University Coastal Re- covered the socioeconomic charac-
Services (2005), North Carolina De- search and Extension Center. The teristics of workers and working con-
partment of Agriculture and Consumer respondents to the survey were the ditions (Posadas et al., 2005b, 2010b),
Services (2008), Georgia Department owners or operators of the selected operational characteristics (Posadas
of Agriculture (2007), and Tennessee nurseries and greenhouses. These se- et al., 2010a), socioeconomic de-
Nursery and Landscape Association lected growers were contacted via terminants of technology adoption
(2006). mail and were asked to return a pre- (Posadas et al., 2005a), and current
Only wholesale growers operat- paid postcard indicating their willing- mechanization systems (Coker et al.,
ing throughout the seven states, and ness to participate in the survey. 2010). Additional reports will be
northern Florida, were included in Those nurseries indicating a willing- forthcoming covering all the partici-
the selection of survey participants. ness to participate were then contacted pating nurseries and greenhouses in
In northern Florida, nurseries were by phone, and interviews scheduled. the eight southern states included in
randomly selected from the listing A total of 215 personal interviews were the survey.
Fig. 1. Map showing all of the randomly selected wholesale nurseries and greenhouses in eight selected southern U.S. states that
participated in the socioeconomic survey from Dec. 2003 to Nov. 2009 by type of operation.
Table 2. Total number of operations, average level of mechanization, and percentage of distribution by annual gross sales of
nurseries and greenhouses by type of operation.
All nursery and Nursery-only Greenhouse-only Mixed nursery and
Characteristic greenhouse operations operations operations greenhouse operations
Total number of operations (number) 215 87 53 75
Average level of mechanization (%)z,y 20.34 17.58 a 24.94 b 20.29 ab
Total deflated gross annual sales ($)y,x,w 605,334.33 518,166.26 a 293,633.37 a 931,253.13 b
Nurseries and greenhouses 55.5 25.6 16.1 13.7
with annual sales below $250,000 (%)
Operations with annual sales 19.4 10.0 4.3 5.2
between $250,000 and $499,999 (%)
Operations with annual sales 10.4 0.5 4.3 5.7
between $500,000 and $999,999 (%)
Operations with annual 14.7 5.2 0.0 9.5
sales $1 million and above (%)
These economic averages and percentages were computed from the results of the socioeconomic survey, that was conducted among randomly selected wholesale nurseries and
greenhouses located in eight, selected southern U.S. states from Dec. 2003 to Nov. 2009.
z
Significantly different by type of operation at P £ 0.05 using analysis of variance (ANOVA).
y
Values in the same row with different letters are significantly different by type of operation at £ 0.05 using Duncan’s multiple range test.
x
Significantly different by type of operation at P £ 0.01 using ANOVA.
w
Annual gross sales were deflated by the consumer price index at 2009 prices.
generated annual gross sales between not considerably different from the Marginal workers’ earnings
$500,000 and $999,999. About 14.7% average 13.0 acres reported in the impact
of these horticulture firms achieved three northern Gulf of Mexico states
annual gross sales of $1,000,000 and (Posadas et al., 2010a). Attempts to The TWE averaged $175,272.57
above, as shown in Table 2. The annual estimate the TR model in quadratic per operation with significant varia-
gross sales of the participating whole- form did not improve the predictive tions by type of operations, as shown
sale growers averaged $563,981 per and explanatory properties of the re- in Table 3. Workers in wholesale op-
operation. Significantly different annual gression results. erations with annual sales $1,000,000
gross sales were reported by type of The MRI of the average level and above received significantly higher
operation with the mixed operations of mechanization, as expected, was total annual earnings. The total
averaging higher gross annual sales positive, indicating that mechaniza- workers’ earnings comprised on aver-
than the nursery-only and greenhouse- tion or automation had consider- age, 29.1% of the annual gross sales
only operations. able enhancing effects on annual gross reported by nurseries and greenhouses.
The estimated TR model ex- sales. However, the positive MRI did There were no significant variations in
plained 89% of the variations of not specify the net effects on net the ratios of the total annual workers’
the deflated TR of the participating revenues above total costs of pro- earnings to total annual gross sales by
nurseries and greenhouses, as shown in duction. The TR model results fur- type of operation.
Table 5. The two explanatory variables ther suggested that an additional About 94% of the differences in
which exerted significant impacts on FTE worker was associated with an the deflated total workers’ earnings
deflated TR were the average level of increase in annual gross sales by were explained by the variations in the
mechanization ($3824.63) and num- $88,904.79. When the number of independent variables included in the
ber of FTE workers ($88,904.79). FTE workers was separated into its total workers’ earnings model. Three
However, Posadas et al. (2008) re- two components, the VMPs of the independent variables explained signif-
ported three explanatory variables PW and PTW were estimated. The icantly the differences in total workers’
that had significant effects on annual VMP of an additional PW employed earnings, as Table 5 shows. The in-
gross sales: the average level of mech- in nurseries and greenhouse was about dependent variables were the average
anization ($4899.62), number of FTE the same ($87,910.77) as an addi- level of mechanization ($1830.64),
workers ($69,251.62), and acres in tional FTE worker. When nurseries number of FTE workers ($21,980.17),
production ($958.95). The average and greenhouses employed PTW in and area in production ($742.08). The
area in production in the eight south- their operations, the VMP of an extra same three variables were reported by
ern states, which was 14.94 acres, was PTW averaged $47,711.78. Posadas et al. (2008) which exerted
Table 3. Selected economic and technical characteristics of nurseries and greenhouses by type of operation.
All nursery and Nursery-only Greenhouse-only Mixed nursery and
Characteristic greenhouse operations operations operations greenhouse operations
Full-time equivalent (FTE) 6.52 5.15 a 3.83 a 10.01 b
workers (number)z,y
Average FTE workers 1.21 1.32 1.45 0.91
(workers/acre)x
Total annual man-hours 16,830.25 13,571.20 a 9,589.90 a 25,415.48 b
employed (hours)z,y
Average annual man-hours 5,965.23 5,291.08 a 8,700.17 b 4,895.38 a
employed (hours/acre)y,x,w
Wage rate ($/hour)y,w,v 8.12 8.51 b 8.04 ab 7.74 a
Total deflated annual 175,272.57 150,640.48 ab 102,249.86 a 243,440.91 b
workers earnings ($)y,w,v
Ratio of total deflated annual workers 29.06 28.62 32.96 27.21
earnings to deflated
annual gross sales (%)v
Average deflated total annual 19,736.57 20,162.67 19,361.88 19,736.57
workers earnings ($/worker)v
Area in production (acres)y,x,w 14.94 18.93 b 1.97 a 18.72 b
Area used in production (%)z,y 60.68 67.36 b 45.30 a 62.87 b
Average area in production 2.82 3.55 b 1.55 a 2.84 b
(acres/operation.)y,x,w
Period since establishment (years)y,w 24.42 23.84 ab 20.33 a 28.04 b
These economic and technical averages and percentages were computed from the results of the socioeconomic survey, that was conducted among randomly selected wholesale
nurseries and greenhouses located in eight, selected southern U.S. states from Dec. 2003 to Nov. 2009.
z
Significantly different by type of operation at P £ 0.01 using analysis of variance (ANOVA).
y
Values in the same row with different letters are significantly different by type of operation at £ 0.05 using Duncan’s multiple range test.
x
1 worker/acre = 2.4711 workers/ha, 1 h/acre = 2.4711 hha–1, 1 acre = 0.4047 ha.
w
Significantly different by type of operation at P £ 0.05 using ANOVA.
v
Economic values were deflated by the consumer price index at 2009 prices.
1,835,665
1,247.43
3,977.82
4,595.55
121.17
104.64
38.44
55.29
N/A
houses, namely area in production
2.50
Table 5. Factors influencing the annual gross sales, workers total earnings, number of full-time equivalent (FTE) workers, and total man-hours employed in nurseries and
—
—
—
—
SE
(356.52), nursery-only operation
employed (hours)
Total man-hours
(–15,574.71), and greenhouse-only
The multiple linear regressions used data collected from the socioeconomic survey of randomly selected wholesale nurseries and greenhouses located in eight selected southern U.S. states from Dec. 2003 to Nov. 2009.
operation (–11,517.46). The esti-
mated regression coefficient of the
–15,574.71**
average level of mechanization was
–11,517.46*
Coefficient
2,279,864
20,322.67
356.52**
2,136.88
19.63**
not statistically significant (Table 5).
81.55
98.90
16.18
N/A
3.10
0.49
2.27
172
Similar regression outcomes were
generated among the growers in the
three northern Gulf of Mexico states for
this empirical model, as follows: acres
in production (343.73), nursery-only
operations (–16,682.48), and green-
737.15
N/A
0.04
0.50
0.01
0.04
1.59
1.85
0.02
0.00
house-only operations (–11,663.73).
—
—
—
—
SE
FTE workers (no.)
The employment impact of the
level of mechanization was neutral,
which is contrary to the expected
labor-saving characteristic of automa-
Coefficient
15.16**
–707.67
0.12**
–6.09*
–4.56*
tion or mechanization. Both the num-
–0.00
N/Az
0.85
0.04
0.01
0.00
0.41
8.26
1.84
177
ber of FTE workers and the number of
man-hours employed were not signif-
icantly affected by the average level of
mechanization. When the number of
FTE workers was segregated into PW
6,393,971
14,286.73
16,272.17
and PTW, the same results were ob-
374.71
666.04
157.67
364.37
191.49
N/A
earnings (2009 dollars)
8.73
Deflated total workers’
—
—
—
—
SE
21,438.78
70,569.10
742.08**
5,420.87
294.49*
–313.39
7.15
0.94
1.84
172
with any improvements in mechaniza-
tion or automation. The International
Labor Organization (2012) reported
that the increase in mechanization and
automation often speeds up the pace
28,187,941
79,983.82
68,265.15
9,208.17
1,344.89
930.42
613.41
38.47
revenues (2009 dollars)
N/A
—
—
—
—
SE
337,802.10
–75,406.65
Coefficient
81,529.27
3,824.63*
188.24**
–28.65
–46.10
N/A
0.89
2.00
202
only operations.
Greenhouse-only operation
Area in production (acres)y
greenhouses (number)
Durbin–Watson statistic
Nursery-only operation
FTE workers (number)
mechanization (%)
Interview date
greenhouses.
F statistic
Table 6. Factors affecting the hiring of new workers with basic horticultural skills, length of basic training period for new
workers employed, man-hours lost (MHL) due to work-related injuries, and number of work-related injuries reported
(WRIR) by the nurseries and greenhouses.
New workers hired with Length of basic MHL because of
basic horticultural training period work-related
skills (%) for new workers (d) injuries (hours) WRIR (no.)
Independent variable Coefficient SE Coefficient SE Coefficient SE Coefficient SE
Constant term –6,097.23 3,770.37 870.18 1,051.24 –1,088.92 3,438.08 –517.37* 168.27
Average level of –0.49* 0.22 –0.04 0.07 –0.31 0.24 0.03** 0.01
mechanization (%)
Full-time equivalent –0.17 0.30 –0.12 0.08 6.69** 0.46 0.09** 0.02
workers (number)
Area in production (acres)z –0.12 0.07 0.06** 0.01 0.27* 0.08 –0.00 0.00
Period since establishment (years) –0.33 0.30 0.00 0.05 –0.28 0.21 –0.01 0.01
Nursery-only operation 27.84* 9.25 –6.80* 2.83 5.04 8.62 –0.01 0.42
Greenhouse-only operation 24.48* 9.77 –8.54* 3.85 7.84 9.18 –0.04 0.44
Area used in production (%) –0.28* 0.12 –0.16** 0.06 –0.00 0.10 0.00 0.00
Interview date 0.01 0.10 –0.00 0.00 0.00 0.00 0.00** 0.00
Workers who were employed 0.03 0.29 0.07 0.05 –0.34 0.19 –0.01 0.00
in the same nursery or
greenhouse the
previous year (%)
New workers with basic N/Ay — –0.13* 0.04 –0.06 0.07 0.00 0.00
horticultural skills (%)
Workers trained on chemical N/A — N/A — 0.26* 0.09 –0.01* 0.00
and pesticide application (%)
Workers trained on basic N/A — N/A — –0.11 0.09 0.01** 0.00
horticultural skills
Operations with annual sales –0.60 9.19 –1.05 2.51 –15.05 9.06 0.17 0.44
between $250,000
and $499,999
Operations with annual sales –14.12 13.10 6.34 7.41 –35.64** 12.12 –0.16 0.59
between $500,000
and $999,999
Operations with annual sales 9.54 13.89 –2.08 4.87 –83.21** 15.09 –0.10 0.73
$1 million and above
Included nurseries and 170 — 161 — 169 — 169 —
greenhouses (number)
R-squared 0.32 — 0.27 — 0.75 — 0.33 —
Standard error of regression 38.98 — 15.13 — 37.61 — 1.84 —
F statistic 6.17** — 4.26** — 31.34** — 5.18** —
Durbin–Watson statistic 1.85 — 1.85 — 2.00 — 2.03 —
The multiple linear regressions used data collected from the socioeconomic survey of randomly selected wholesale nurseries and greenhouses located in eight selected southern
U.S. states from Dec. 2003 to Nov. 2009.
z
1 acre = 0.4047 ha.
y
Not applicable in this model.
*,**Statistically significant at P £ 0.05 or 0.01, respectively, using T value or F test.
skills who were hired by the participat- injuries per operation with no signif- were primarily back strains, cut fin-
ing nurseries and greenhouses. icant differences observed among gers, shoulder and ankle strains, and
types of operations (Table 4). The eye injury.
Workers’ training time impact number of MHL due to work-related Each FTE worker added to the
The length of the basic training injuries averaged 15.52 h per opera- labor force led to an additional 0.09
period for newly hired workers aver- tion across the three types of opera- work-related injury and 6.69 h lost as
aged 5.65 d with significant variations tions. About 26.4% of the workers in a result of these injuries. The percent-
among various types of operations, as all three types of operations were age of workers trained on chemical
Table 4 shows. About 27% of the trained in chemical and pesticide ap- and pesticide application had direct
differences in the number of training plication. About 31.2% of workers effects on MHL. An increase in the
days were explained by the estimated were trained on basic horticultural area of production by an acre led to
equation shown in Table 6. Five skills with more workers’ training con- a rise in the MHL by 0.27 h due to
explanatory variables have significant ducted by the mixed-type operations. injuries. Over the 6 years when the
effects on the decisions involving the The regression results of the personal interviews were conducted
length of the training period. The WYI models indicate that 75% and with the nurseries and greenhouses,
significant variables were area in pro- 33% of the variations in MHL and the a gradual increasing trend in the
duction (0.06), nursery-only operations number of injuries were explained by number of work-related injuries was
(–6.80), greenhouse-only operations the independent variables included in observed. The increase in the percent-
(–8.54), area used in production the models, respectively (Table 6). age of workers trained on basic hor-
(–0.16), and new workers with basic The significant variables affecting the ticultural skills caused the number of
horticultural skills (–0.13). These re- number of MHL due to work-related work-related injuries to gradually es-
sults included more variables than the injuries were the number of FTE calate. The increase in the percentage
growers in the three northern Gulf of workers (6.69), area in production of workers trained on chemical and
Mexico states which included only (0.27), workers trained on chemical pesticide application drove the num-
the new workers with basic horticul- and pesticide application (0.26), op- ber of work-related injuries to fall but
tural skills (–0.27). erations with annual sales between may have caused the MHL to rise.
The workers’ TTI of the level of $500,000 and $999,999 (–35.64), The wholesale operations with annual
mechanization was neutral, implying and operations with annual sales be- sales above $500,000 reported lower
that its impacts depend on the need tween $1,000,000 and above (–83.21). number of MHL due to injuries.
for increased training in the handling For the number of work-related in- When the number of FTE workers
of specialized equipment and the juries, the significant determinants were was separated into its two compo-
lower requirement for manual workers the average level of mechanization nents, the regression results showed
as a result of automation or mechani- (0.03), the number of FTE workers that the work-related injuries were
zation. The acres in production had (0.09), date of interview (0.00), accounted for by the 0.09 injuries
positive impact on training period workers trained on chemical and pes- reported for every additional PW
since additional acreage placed under ticide application (–0.01), and workers employed.
production required more man-hours, trained on basic horticultural skills
as illustrated in the employment im- (0.01). In comparison, only the num- Workers’ retention impact
pact model. The nursery-only and ber of FTE workers significantly af- Nursery and greenhouse growers
greenhouse-only operations tended fected the number of MHL (9.62) and can retain their current workers by
to spend fewer training days for newly number of injuries (0.32) reported by maintaining good working condi-
hired workers since these operations the growers in the three northern Gulf tions, providing workers’ benefits,
were more inclined to hire new of Mexico states. and improving productivity through
workers with basic horticultural skills The WYI was expected to be the adoption of mechanized produc-
than mixed nursery and greenhouse positive because automation or mech- tion systems. The lack of field sanita-
operations. Since those operations anization would eliminate hazardous tion on agricultural job sites increased
using more of the existing acreage to working conditions. However, the the probability of workers reporting
horticulture production tended to number of WRIR by participating gastrointestinal disorders (Frisvold
employ fewer new workers with basic growers increased as a result of the et al., 1987). The percentages of
horticultural skills, they devoted lesser improvements in the average level of workers with access to sanitation facil-
number of days training them. In mechanization. The International La- ities and drinking water and to rest and
addition, when the number of FTE bor Organization (2012) reported recreational areas averaged 97.0% and
workers was separated into its two that many workers suffer from injuries 96.1%, respectively (Table 4). On the
components, the number of PTWs re- and diseases that result from manual other hand, low percentages of the
gistered a significant negative effect work and the increased mechaniza- workers were provided with housing
(–0.61) on workers’ TT. tion of work. One of the results of benefits (14.0%), medical and dental
manual work, as well as the increase in insurance (8.9%), and retirement ben-
Workers’ safety impact mechanization, is that more and more efits (7.6%).
Workers’ safety was measured in workers are suffering from back aches; Exceedingly high workers’ reten-
terms of MHL due to work-related neck aches; sore wrists, arms and legs; tion rates were observed among the
injuries and number of WRIR. The and eyestrain. The most commonly participating wholesale operations av-
number of WRIR the year before reported injuries among the partici- eraging 88.9%, with no significant
they were interviewed averaged 0.74 pating nurseries and greenhouses variations among various types of
398 • June 2012 22(3)
operations, as shown in Table 4. How- rest and lounging areas (0.78), workers greenhouse-only operations accom-
ever, the regression results of the re- provided with housing benefits (0.17), plished 25.4% of their tasks with
tention model showed that only 12% and workers provided with retirement some form of mechanization or auto-
of the variations in retention rates was benefits (–0.23). mation. The top five major duties
explained by the independent variables done by greenhouse workers with
and that the F test indicated that the Conclusions considerable levels of mechanization
estimated equation was not statistically About one-fifth of the major included irrigation application and
significant (Table 7). The WRI of the tasks performed by workers in nurs- management (56.8%), environmental
level of mechanization was expected to eries and greenhouses in the eight control (47.2%), fertilizer application
be positive, but it turned out to be southern states that participated in (39.4%), filling containers with sub-
neutral. It seemed that no significant the face-to-face interviews were per- strate (34.3%), and pesticide applica-
variations in retention rates were ob- formed with some form of mechani- tion (30.6%).
served among the participating opera- zation or automation. About 17.5% of There was wide disparity in the
tions since almost all of their workers the major tasks in nursery-only opera- annual gross sales reported by the
were with them during the past 2 years tions were performed by workers with horticulture firms in the eight southern
before conducting the interviews. The some form of mechanization or auto- states. Majority of the growers (55.5%)
same neutral impacts were observed mation. The top five major tasks per- were operations, which generated an-
when the number of FTE workers was formed by nursery workers with nual gross sales below $250,000. Less
segmented into its two permanent and significant levels of mechanization than one-fifth of the horticulture oper-
part-time components. In contrast, included irrigation application and ations grossed between $250,000 and
the retention of workers in the three management (51.8%), transporting $499,999 per year. One out of 10 of
northern Gulf of Mexico states containers to field in nursery (31.9%), the nurseries and greenhouses earned
(Posadas et al., 2008) was significantly filling containers with substrate (28.5%), between $500,000 and $999,999.
affected by greenhouse-only opera- media preparation (28.4%), and pesti- About 14.7% of the horticulture firms
tions (14.94), workers with access to cide application (24.7%). Workers in sold horticulture products and services
valued at $1,000,000 or more per year.
Nurseries and greenhouses in the
Table 7. Factors affecting the retention rate of workers who were employed in the eight southern states that reported
same nursery or greenhouse the previous year. higher levels of annual gross sales
Workers’ retention rates (%) demonstrated higher levels of mech-
Independent variable Coefficient SE
anization or automation, implying
economies of scale associated with
Constant term 117.73 1,418.15 technology adoption by these whole-
Average level of mechanization (%) 0.14 0.11 sale horticulture production firms.
Full-time equivalent workers (number) 0.20 0.12 The two explanatory variables that
Area in production (acres)z –0.03 0.01 exerted significant impacts on de-
Period since establishment (years) 0.09 0.08 flated TR were the average level of
Nursery-only operation 2.05 3.15 mechanization ($3824.63) and num-
Greenhouse-only operation 2.30 3.78 ber of FTE workers ($88,904.79).
Area used in production (%) –0.11 0.06 However, in the three northern Gulf
Workers with access to rest 0.33 0.21 of Mexico states, three explanatory
and lounging areas (%) variables were reported to have sig-
Workers provided with housing benefits (%) 0.07 0.03 nificant effects on annual gross sales,
Workers provided with medical 0.23* 0.08 namely the average level of mechani-
and dental insurance (%) zation ($4899.62), number of FTE
Workers provided with –0.17* 0.06 workers ($69,251.62), and acres in
retirement benefits (%) production (958.95).
Workers with access to sanitation –0.48* 0.23 The increase in total workers’
facilities and drinking water (%) earnings associated with improved
Interview date –0.00 0.00 mechanization indicated that nurseries
Operations with annual sales –3.50 4.36 and greenhouses were able to pay their
between $250,000 and $499,999 workers higher wages and salaries. The
Operations with annual sales –12.14 4.71 overall ratio between the total annual
between $500,000 and $999,999 workers’ earnings and the total annual
Operations with annual sales $1 million and above –13.38 4.97 gross sales was 29%. When the num-
Included nurseries and greenhouses (number) 194 — ber of FTE workers was separated into
R-squared 0.12 — its two components, regression results
Standard error of regression 20.40 — showed that the marginal earning of
F statistic 1.55 — an additional PW was $20,791.65 and
Durbin–Watson statistic 1.81 — that of a PTW was $15,138.89. It
The multiple linear regression used data collected from the socioeconomic survey of randomly selected wholesale should be noted that the values of the
nurseries and greenhouses located in eight selected southern U.S. states from Dec. 2003 to Nov. 2009.
z
1 acre = 0.4047 ha. annual marginal productivity of the
*Statistically significant at P £ 0.05 using T value. PW and PTW were estimated to be
• June 2012 22(3) 399
PRODUCTION AND MARKETING REPORTS
$87,971 and $47,712, respectively. (27.84), greenhouse-only operation skills (0.01). In comparison, only the
Three independent variables explained (24.48), and area used in production number of FTE workers significantly
significantly the differences in total (–0.28) exerted significant influence affected the number of MHL (9.62)
workers’ earnings including the aver- over the hiring of workers with basic and number of injuries (0.32) report-
age level of mechanization ($1830.64), horticultural skills. On the other ed by the growers in the three north-
number of FTE workers ($21,980.17), hand, only three significant variables ern Gulf of Mexico states.
and area in production ($742.08). The were reported among the growers in The WRI of mechanization or
same three independent variables the three northern Gulf of Mexico automation was neutral since most of
exerted significant influences on the total states, namely average level of mech- the workers were with the participat-
workers’ earnings in the three northern anization (–1.68), nursery-only oper- ing nurseries and greenhouses during
Gulf of Mexico states, namely average ations (53.09), and greenhouse-only the past 2 years before conducting the
level of mechanization ($1608.88), operations (74.80). interviews. This result was in contrast
number of FTE workers ($18,650.94), Horticulture operations hiring with the findings among the workers in
and area in production ($811.95). fewer new workers with basic horti- the nurseries and greenhouses located
The number of workers or man- cultural skills spent fewer training in the three northern Gulf of Mexico
hours hired by the horticultural days providing them with basic hor- states where workers’ retention was
firms in the eight southern states aver- ticultural skills. The length of training significantly affected by greenhouse-
aged 1.21 FTE workers per acre or period for basic horticultural skills was only operations (14.94), workers with
5965.23 h per acre with significant not influenced by the level of mecha- access to rest and lounging areas
differences by type of operation. The nization, but was significantly extended (0.78), workers provided with housing
increased levels of mechanization when nurseries or greenhouses hired benefits (0.17), and workers provided
produced neutral effects on employ- more new workers without basic horti- with retirement benefits (–0.23).
ment and raised the VMP of labor, cultural skills. Five explanatory variables
implying that technology adoption by have significant effects on the decisions Literature cited
wholesale nurseries and greenhouses involving the length of the training
Alabama Department of Agriculture and
did not displace any worker but in- period. The significant variables were Industries. 2004. Certified nurseries. Ala-
stead improved total workers’ earn- area in production (0.06), nursery-only bama Dept. Agr. Ind., Bur. Plant Ind.,
ings. When the number of FTE operation (–6.80), greenhouse-only Montgomery, AL.
workers was segregated into its com- operation (–8.54), area used in pro-
ponents, both the numbers of PW duction (–0.16), and new workers with Bellenger, M., D. Fields, K. Tilt, and D.
and PTW were not significantly influ- basic horticultural skills (–0.13). These Hite. 2008. Producer preferences for mi-
grant labor and the wage, hours, and gross
enced by the average level of mechani- results included more variables than sales effects in Alabama’s horticulture in-
zation. The best possible explanation the growers in the three northern Gulf dustry. HortTechnology 18:301–307.
of these results is that the participating of Mexico states which included only
nurseries and greenhouses were able to the new workers with basic horticul- Bureau of Labor Statistics. 2012a. Con-
use existing labor inputs more efficiently tural skills (–0.27). sumer price index. 14 Feb. 2012.
with any improvements in mechaniza- The WYI was expected to be <http://www.bls.gov/cpi/home.htm>.
tion or automation. Three independent positive because automation or mech- Bureau of Labor Statistics. 2012b. Occu-
variables exerted significant influences anization would eliminate hazardous pational outlook handbook, 2010–11
in the hiring decisions made by par- working conditions, as reported among edition: Agricultural workers. 8 Feb.
ticipating nurseries and greenhouses, the growers in the three northern Gulf 2012. <http://www.bls.gov/oco/
namely area in production (0.12), of Mexico states. However, the num- ocos349.htm>.
nursery-only operation (–6.09), and ber of WRIR by participating growers Coker, R.Y., B.C. Posadas, S.A. Langlois,
greenhouse-only operation (–4.56). increased as a result of the improve- P.R. Knight, and C.H. Coker. 2010.
Comparable regression results were ments in the average level of mecha- Current mechanization systems among
arrived at among the growers in the nization. The significant variables nurseries and mixed operations. Missis-
three northern Gulf of Mexico states. affecting the number of MHL due sippi. Agr. For. Expt. Sta. Bul. 1189.
About 58.4% of the new workers to work-related injuries were the Florida Department of Agriculture and
hired by nurseries and greenhouses in number of FTE workers (6.69), area Consumer Services. 2005. Certified nurs-
the eight southern states had basic in production (0.27), workers trained ery and stock dealer list. Florida Dept.
horticultural skills with the mixed- on chemical and pesticide application Agr. Consumer Serv., Bur. Plant Ind.,
type operations hiring more less- (0.26), operations with annual sales Tallahassee, FL.
skilled workers. Significant advances between $500,000 and $999,999 Frisvold, G., R. Mines, and J.M. Perloff.
in mechanization have considerable (–35.64), and operations with an- 1987. The effects of job sites sanitation
implications on the skill levels of nual sales of $1,000,000 and above and living conditions on the health and
newly hired workers. Growers that (–83.21). For the number of work- welfare of agricultural workers.
reported higher levels of mechaniza- related injuries, the significant de- CUDARE Working Paper 431. Dept.
tion hired fewer new workers with terminants were the average level of Agr. Res. Econ., Univ. of California,
basic horticultural skills, especially mechanization (0.03), the number of Berkeley, CA.
among mixed nurseries and green- FTE workers (0.09), date of interview Gabbard, S.M. and J.M. Perloff. 1997.
houses. Regression results showed (0.00), workers trained on chemical The effects of pay and work conditions on
that the average level of mechaniza- and pesticide application (–0.01), and farmworker retention. Ind. Relat. 36:
tion (–0.49), nursery-only operation workers trained on basic horticultural 474–488.