Comments on: Competition and rising costs force Southwestern farmers to consider alternatives http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/ for students and teachers of Economics Thu, 09 Feb 2012 09:13:55 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: hslater http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-1/#comment-21303 hslater Sat, 04 Feb 2012 11:45:56 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-21303 Hi Katie, You came up with lots of ideas that I never considered, but I was wondering if you thought about the option of farmers switching to a different market and beginning to produce a different product. Witht the land they would have had it must be possible for them to change to a different product, for example to begin keeping livestock. Hannah Hi Katie,

You came up with lots of ideas that I never considered, but I was wondering if you thought about the option of farmers switching to a different market and beginning to produce a different product. Witht the land they would have had it must be possible for them to change to a different product, for example to begin keeping livestock.

Hannah

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]]> By: hslater http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-21302 hslater Sat, 04 Feb 2012 11:38:23 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-21302 1. The increase in the strictness of border controls has decreased the levels of immigration and therefore, this has significantly decreased the amount of cheap labour available to farmers. 2. Farmers may decide to move out of the market and start producing something that needs less labour or they may decide to shut down completely. Their fixed costs of production will have increased and this may mean that they have to cut down on other costs. 3. Technology may be able to increase efficiency and therefore, the farmers may be able to get more out of each crop yield. They may also be able to use technology to replace some of the workers and this would mean that they wouldn't lose too much from this output. 4. The other alternatives that they have are to either switch to producing something elsse that needs less labour or to move to a place where cheap labour is more readily available for them. 1. The increase in the strictness of border controls has decreased the levels of immigration and therefore, this has significantly decreased the amount of cheap labour available to farmers.
2. Farmers may decide to move out of the market and start producing something that needs less labour or they may decide to shut down completely. Their fixed costs of production will have increased and this may mean that they have to cut down on other costs.
3. Technology may be able to increase efficiency and therefore, the farmers may be able to get more out of each crop yield. They may also be able to use technology to replace some of the workers and this would mean that they wouldn't lose too much from this output.
4. The other alternatives that they have are to either switch to producing something elsse that needs less labour or to move to a place where cheap labour is more readily available for them.

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]]> By: svanwinkel2 http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-21283 svanwinkel2 Fri, 03 Feb 2012 08:33:16 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-21283 Hi Jamie. You didn't really answer the questions, but indirectly you answered some of them a little. I agree on the options for reducing costs though. Hi Jamie.
You didn't really answer the questions, but indirectly you answered some of them a little. I agree on the options for reducing costs though.

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]]> By: svanwinkel2 http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-21282 svanwinkel2 Fri, 03 Feb 2012 08:27:41 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-21282 3.How might technology help save these growers from having to shut down their operations? Since technology nowadays is a lot cheaper than a few decades ago, it is cheaper to buy a machine once than hire many employees. This will be a relatively large cost for once but then the labour will be cheaper and faster, maybe even increasing the production. 4.What other alternatives do they have to shutting down in the long run? As I wrote above, using machines would be an option, which absolutely isn't rare on a farm nowadays. Though there might be farmers that don't have the money for such a machine. Another option, discussed in the podcast was to move the farms to Mexico and get the very cheap labour there. Though this idea has it's disadvantages as well. Moving costs money, and when the farmers actually have their farm in Mexico, they will have larger costs for transport and distribution. Maybe the importing of the vegetables will be a problem with the American law. 3.How might technology help save these growers from having to shut down their operations?
Since technology nowadays is a lot cheaper than a few decades ago, it is cheaper to buy a machine once than hire many employees. This will be a relatively large cost for once but then the labour will be cheaper and faster, maybe even increasing the production.
4.What other alternatives do they have to shutting down in the long run?
As I wrote above, using machines would be an option, which absolutely isn't rare on a farm nowadays. Though there might be farmers that don't have the money for such a machine. Another option, discussed in the podcast was to move the farms to Mexico and get the very cheap labour there. Though this idea has it's disadvantages as well. Moving costs money, and when the farmers actually have their farm in Mexico, they will have larger costs for transport and distribution. Maybe the importing of the vegetables will be a problem with the American law.

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]]> By: svanwinkel2 http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-21281 svanwinkel2 Fri, 03 Feb 2012 08:27:19 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-21281 1.What changes have occurred in the American fruit and vegetable industry? Since the American laws on immigration have been changed, have the farmers less opportunity to get cheap labour from other countries. Therefore they have to use more expensive labour which increases their costs. 2.What are the possible outcomes for Southwest farmers? There is a big chance that many of the Southwest farmers will have to shut their farm down since the costs have increased a lot. Another option is the increase of use of machines, to make the labour a bit cheaper. 1.What changes have occurred in the American fruit and vegetable industry?
Since the American laws on immigration have been changed, have the farmers less opportunity to get cheap labour from other countries. Therefore they have to use more expensive labour which increases their costs.
2.What are the possible outcomes for Southwest farmers?
There is a big chance that many of the Southwest farmers will have to shut their farm down since the costs have increased a lot. Another option is the increase of use of machines, to make the labour a bit cheaper.

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]]> By: Arthi http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-21156 Arthi Mon, 30 Jan 2012 22:51:54 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-21156 Hey Jackson, I agree with most of the things you mentioned - and your explanation of the effect on labour costs made it clear for me! What did you make of the hybrid idea? I thought it could be innovation, but that which is only possible with technology - what do you think ? :) Hey Jackson,
I agree with most of the things you mentioned – and your explanation of the effect on labour costs made it clear for me! What did you make of the hybrid idea? I thought it could be innovation, but that which is only possible with technology – what do you think ? :)

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]]> By: Jackson Truex http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-20992 Jackson Truex Wed, 25 Jan 2012 04:58:03 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20992 1. What changes have occurred in the American fruit and vegetable industry? There are far fewer laborers available due to the tightening of immigration laws, which leads to shortage of cheap labor. Many fruits and vegetables require hand picking, which means that average variable costs will increase. Labor costs are increased and are less productive. 2.What are the possible outcomes for Southwest farmers? Farmers with labor shortages are facing large decreases in their profit. Farms are beginning to shut down due to this drop in income. 3.How might ethnology help save these growers from having to shut down their operations? Farmers can replace the crops they are growing with other crops, so they can use machines to harvest them. This causes less use of human labor and will cause an increase in profit. 4.What other alternatives do they have to shutting down in the long run? Farmers could purchase land in another countries without labor shortages. 1. What changes have occurred in the American fruit and vegetable industry?

There are far fewer laborers available due to the tightening of immigration laws, which leads to shortage of cheap labor. Many fruits and vegetables require hand picking, which means that average variable costs will increase. Labor costs are increased and are less productive.

2.What are the possible outcomes for Southwest farmers?

Farmers with labor shortages are facing large decreases in their profit. Farms are beginning to shut down due to this drop in income.

3.How might ethnology help save these growers from having to shut down their operations?

Farmers can replace the crops they are growing with other crops, so they can use machines to harvest them. This causes less use of human labor and will cause an increase in profit.

4.What other alternatives do they have to shutting down in the long run?

Farmers could purchase land in another countries without labor shortages.

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]]> By: sophie zhou http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-20987 sophie zhou Tue, 24 Jan 2012 22:30:12 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20987 1. What changes have occurred in the American fruit and vegetable industry? The lack of labor force d change in the vegetable and fruit industry In America. For example, the green chili that was often seen in the farms are now replaced with corn because corns can be harvested by machines. Furthermore, due to the tougher immigration laws, it is making it harder for illegal immigrants to cross the border. As a result, cheap labour is not as readily available as before. 2. What are the possible outcomes for Southwest farmers? Due to a lack of labor force, a decrease in the supply of fruit and vegetables might result. Furthermore, less labourers might also mean that the preexisting supply might be wasted away because there isn't enough people to tend to these vegetables. This situation might also mean that labourours might have to plant less variety of crops and fruit because of possible wastage. 3.How might technology help save these growers from having to shut down their operations? Advanced technology might help save growers from having to shut down their operations since many of these machines only need the assistance of only a few labourers to run. Thus, this substitute might help reduce the variable cost. However, as of this moment, the machines that they are using are of poor quality and are unreliable. Thus, by investing in superior machines, they might be able to substitute labourers with machines. 3. What other alternatives do they have to shutting down in the long run? One alternatives to shutting down the farms is to move the farming the operation across the border to Mexico where cheaper labors are readily available. Another alternative is to pass legislation that permits more foreign labors to move in. 1. What changes have occurred in the American fruit and vegetable industry?
The lack of labor force d change in the vegetable and fruit industry
In America. For example, the green chili that was often seen in the farms are now replaced with corn because corns can be harvested by machines. Furthermore, due to the tougher immigration laws, it is making it harder for illegal immigrants to cross the border. As a result, cheap labour is not as readily available as before.
2. What are the possible outcomes for Southwest farmers?

Due to a lack of labor force, a decrease in the supply of fruit and vegetables might result. Furthermore, less labourers might also mean that the preexisting supply might be wasted away because there isn't enough people to tend to these vegetables. This situation might also mean that labourours might have to plant less variety of crops and fruit because of possible wastage.

3.How might technology help save these growers from having to shut down their operations?

Advanced technology might help save growers from having to shut down their operations since many of these machines only need the assistance of only a few labourers to run. Thus, this substitute might help reduce the variable cost. However, as of this moment, the machines that they are using are of poor quality and are unreliable. Thus, by investing in superior machines, they might be able to substitute labourers with machines.

3. What other alternatives do they have to shutting down in the long run?

One alternatives to shutting down the farms is to move the farming the operation across the border to Mexico where cheaper labors are readily available. Another alternative is to pass legislation that permits more foreign labors to move in.

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]]> By: Jamie Owen http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-1/#comment-20977 Jamie Owen Tue, 24 Jan 2012 19:51:30 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20977 hey Although with the machines being used people are still needed to operate them and fix them if they break down. hey
Although with the machines being used people are still needed to operate them and fix them if they break down.

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]]> By: Sam Jowett http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-1/#comment-20958 Sam Jowett Tue, 24 Jan 2012 10:54:55 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20958 Hi Jacob! I agree with all your answers. moving to Mexico does seem like the best answer, however many farmers will find it hard to do, meaning they have to quit their hometown, and start a completely new life! If they are not ready to make this lifechanging decision, then they might well have to invent some new technology to replace the labor! Hi Jacob! I agree with all your answers. moving to Mexico does seem like the best answer, however many farmers will find it hard to do, meaning they have to quit their hometown, and start a completely new life! If they are not ready to make this lifechanging decision, then they might well have to invent some new technology to replace the labor!

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]]> By: Sam Jowett http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-20957 Sam Jowett Tue, 24 Jan 2012 10:48:04 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20957 1.What changes have occurred in the American fruit and vegetable industry? In the American fruit and vegetable industry, the cost of labor has increased due to the shortage of cheaper labor by illegal workers. Nowadays, there are tougher immigration laws, making acquisition of cheap labor more difficult. This means that the industry’s average variable costs (like labor) are increased. This results in more costs when wanting to produce output. 2.What are the possible outcomes for Southwest farmers? At this point, Southwest farmers can continue their growing with higher labor costs (and lose revenue), convert machinery to make labor faster, or even move the farming to Mexico in pursuit of cheap labor. 3.How might technology help save these growers from having to shut down their operations? Developments in technology can make labor faster and more efficient. For example, look to the converted tomato picking machine that requires 2 to 3 people to operate it. This technology does not require vast manpower, and will save growers money in the long run. 4.What other alternatives do they have to shutting down in the long run? The only other realistic alternative to shutting down or improving machinery is moving the entire operation to Mexico, where cheap labor is abundant. 1.What changes have occurred in the American fruit and vegetable industry?

In the American fruit and vegetable industry, the cost of labor has increased due to the shortage of cheaper labor by illegal workers. Nowadays, there are tougher immigration laws, making acquisition of cheap labor more difficult. This means that the industry’s average variable costs (like labor) are increased. This results in more costs when wanting to produce output.

2.What are the possible outcomes for Southwest farmers?

At this point, Southwest farmers can continue their growing with higher labor costs (and lose revenue), convert machinery to make labor faster, or even move the farming to Mexico in pursuit of cheap labor.

3.How might technology help save these growers from having to shut down their operations?

Developments in technology can make labor faster and more efficient. For example, look to the converted tomato picking machine that requires 2 to 3 people to operate it. This technology does not require vast manpower, and will save growers money in the long run.

4.What other alternatives do they have to shutting down in the long run?

The only other realistic alternative to shutting down or improving machinery is moving the entire operation to Mexico, where cheap labor is abundant.

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]]> By: Debbie Pai http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-20946 Debbie Pai Tue, 24 Jan 2012 04:28:19 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20946 Discussion Questions: 1.What changes have occurred in the American fruit and vegetable industry? In America, around the borders, many workers who work for minimum wages are illegal workers that came/come from Mexico. Now, since the immigration law is getting stricter, the American fruit and vegetable industry is having a shortage of workers. The lack of cheap labor has negatively impacted the farmers. 2.What are the possible outcomes for Southwest farmers? If they would like to stay in America, the Southwest farmers can either grow fruit that can be picked by machines or they can create or experiment with new machineries. And if not, then an alternative is to leave the united states and go to somewhere cheaper, such as its neighboring country, Mexico. 3.How might technology help save these growers from having to shut down their operations? Technology will enable the farmers to move away from having to use a lot of labor. Thus, they won’t experience the shortage of cheap labor and will not have to move away. 4.What other alternatives do they have to shutting down in the long run? Just as I mentioned in the top, an alternative is that southwest farmers can move their farm to Mexico. Discussion Questions:
1.What changes have occurred in the American fruit and vegetable industry?
In America, around the borders, many workers who work for minimum wages are illegal workers that came/come from Mexico. Now, since the immigration law is getting stricter, the American fruit and vegetable industry is having a shortage of workers. The lack of cheap labor has negatively impacted the farmers.

2.What are the possible outcomes for Southwest farmers?
If they would like to stay in America, the Southwest farmers can either grow fruit that can be picked by machines or they can create or experiment with new machineries. And if not, then an alternative is to leave the united states and go to somewhere cheaper, such as its neighboring country, Mexico.

3.How might technology help save these growers from having to shut down their operations?
Technology will enable the farmers to move away from having to use a lot of labor. Thus, they won’t experience the shortage of cheap labor and will not have to move away.

4.What other alternatives do they have to shutting down in the long run?
Just as I mentioned in the top, an alternative is that southwest farmers can move their farm to Mexico.

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]]> By: Debbie Pai http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-20945 Debbie Pai Tue, 24 Jan 2012 04:27:25 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20945 Hi spoilous2! Your explanations are very well done and I agree with most of it. I also really liked the possible alternatives that you provided in question #4. However for question #3, I think it doesn't take a few years for farmers to use machinery to pick fruit because they could either purchase one right away or alter existing machines that they have. Anyhow, your concept and idea is correct that that's good! Hi spoilous2!

Your explanations are very well done and I agree with most of it. I also really liked the possible alternatives that you provided in question #4. However for question #3, I think it doesn't take a few years for farmers to use machinery to pick fruit because they could either purchase one right away or alter existing machines that they have. Anyhow, your concept and idea is correct that that's good!

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]]> By: bhejaichon2 http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-20938 bhejaichon2 Mon, 23 Jan 2012 21:45:59 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20938 Hey, I agreed with all your answer and they clearly explained very well. All your answers have shown your understanding of the materials within the blog post very well. Overall, great job(: Hey, I agreed with all your answer and they clearly explained very well. All your answers have shown your understanding of the materials within the blog post very well. Overall, great job(:

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]]> By: morpana http://welkerswikinomics.com/blog/2009/01/18/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/comment-page-2/#comment-20927 morpana Mon, 23 Jan 2012 13:46:55 +0000 http://welkerswikinomics.com/blog/2007/10/25/competition-and-rising-costs-force-southwestern-farmers-to-consider-alternatives/#comment-20927 1. What changes have occurred in the American fruit and vegetable industry? Immigration laws have tightened in America, which has a resulted in a decrease of immigrants, the principal resource for fruit and vegetable collection, and therefore an increase in their production costs. 2. What are the possible outcomes for southwestern farmers? If the production costs rise to high, the firms may be forced to shut down. An alternative outcome may be that the firms would switch from workers to machinery for the collection of the crops they produce, or to switch to other crops that can be produced with current technology. 3. How might technology help save these growers from having to shut down their operations? Crop collection technology might enable the firms to continue production as they could change from the costly workers to machinery, given that the machines are more cost efficient. 4. What other alternatives do they have to shutting down in the long run? In order to prevent shut down, they could switch to alternative sources of produce collection, act against the labor shortage by convincing the government to increase immigration, or moving to the main source of immigrant labor, Mexico. 1. What changes have occurred in the American fruit and vegetable industry?
Immigration laws have tightened in America, which has a resulted in a decrease of immigrants, the principal resource for fruit and vegetable collection, and therefore an increase in their production costs.
2. What are the possible outcomes for southwestern farmers?
If the production costs rise to high, the firms may be forced to shut down. An alternative outcome may be that the firms would switch from workers to machinery for the collection of the crops they produce, or to switch to other crops that can be produced with current technology.
3. How might technology help save these growers from having to shut down their operations?
Crop collection technology might enable the firms to continue production as they could change from the costly workers to machinery, given that the machines are more cost efficient.
4. What other alternatives do they have to shutting down in the long run?
In order to prevent shut down, they could switch to alternative sources of produce collection, act against the labor shortage by convincing the government to increase immigration, or moving to the main source of immigrant labor, Mexico.

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