During the last decade, the specialty crop industry has faced multiple challenges alongside shifting consumer demand. While some commodities have experienced growth, others have declined due to labor constraints, disease pressures, and increasing import competition. Figures 1 and 2 show acreage trends by commodity group from 2014 to 2024. Over the last decade (2014-2024), harvested acreage for fresh and processed vegetables declined by 23%, while potato acreage decreased by 13%, representing compound annual growth rate (CAGR) declines of 2.5% and 1.4%, respectively (Figure 1). Production declines were smaller due to continued productivity and yield gains.
Figure 1. U.S. Harvested Vegetable Acreage, 2024-2024.
Combined fruit and nut acreage has increased steadily, driven almost entirely by tree nuts, where planted acreage expanded by 87% over the last decade (Figure 2). Growth has been led by almonds and pistachios, with additional increases in pecans and walnuts. These crops are generally less labor-intensive because harvesting in modern orchards is highly mechanized.
In contrast, fruit acreage has generally declined. Citrus acreage fell by 32%, while other major non-citrus fruit acreage declined by about 12%, representing CAGR declines of 3.7% and 1.3%, respectively. The citrus decline has been largely driven by citrus greening disease and lower orange juice consumption. Meanwhile, stronger consumer demand has supported growth in strawberry and blueberry acreage and production, although imports have increased faster than domestic output.
Figure 2. U.S. Bearing Fruit and Tree Nut Acreage, 2014-2024.
Economic pressures continue to challenge the specialty crop industry, particularly rising input and labor costs. Labor shortages remain one of the industry’s most significant concerns, especially for operations dependent on hand harvest. Adverse Effect Wage Rates (AEWR) for H-2A workers have increased steadily in recent years, adding pressure to labor-intensive operations. Recent changes implemented in October 2025 under the U.S. Department of Labor’s Interim Final Rule modify how AEWR wages are calculated, specifically by adopting state-level wage data and adjustments tied to worker skill levels and housing cost adjustments for H-2A versus domestic workers. These changes have been received with optimism by much of the industry, as they are expected to result in significant wage savings relative to AEWR increases that occurred in previous years. However, projected savings vary by state depending on whether the new AEWR falls below the federal or state minimum wage, in which case employers must pay the applicable minimum wage per the Fair Labor Standards Act. For example, Florida’s statewide minimum wage will increase to $15.00 per hour on September 30, 2026, exceeding the 2025-2026 AEWR for Florida H-2A workers of $10.18 per hour for Skill Level I workers and $12.77 per hour for Skill Level II workers. As a result, employers must pay the higher state minimum wage. Assuming 92% of H-2A workers are classified as Skill Level I and 8% as Skill Level II, estimated total wage bill savings in southern states range from 7.6% in Florida and 10.9% in Maryland to 41.6% in Louisiana and 39.3% in Mississippi (Rutledge et al., 2026).
A 2025 Specialty Ag Labor Survey conducted by Vegetable Grower News and Fruit Grower News found that more growers are responding to labor shortages by reducing acreage than by adopting automation. Although mechanization continues to advance, many fresh-market fruits and vegetables still require hand harvest to maintain quality standards. As a result, mechanization remains a longer-term solution for many specialty crop sectors.
Import competition is another major issue affecting the industry. Imports play an important role in supplying products during the off season, but in the case of southeastern growers, they also compete directly with domestic production. Lower labor and regulatory costs in competing countries, particularly Mexico, place additional pressure on U.S. producers. In 2024, nonsupervisory farmworkers in the United States earned an average of $18.13 per hour (USDA ERS, 2025), compared to substantially lower minimum wages ($2.08-2.76) for farmworkers in Mexico (CONASAMI, 2024). As the review of the United States-Mexico-Canada Agreement (USMCA) approaches, specialty crop groups are seeking stronger seasonal protections during peak U.S. production periods to remain competitive. These efforts include support from southern commodity groups affected by increasing low-priced import competition, including the Florida Blueberry Growers Association, Florida Tomato Exchange, Florida Fruit and Vegetable Association, and Georgia Watermelon Association, among others.
Despite these challenges, consumer demand for specialty crops continues to grow, driven in part by increasing interest in healthier diets. For example, industry organizations such as the North Carolina Sweet Potato Commission have invested in marketing campaigns and influencer partnerships to encourage year-round consumption. Opportunities remain for southern producers through product differentiation, branding, improved flavor and quality, and direct-to-consumer marketing. Examples include regional branding initiatives such as Georgia Grown, Kentucky Proud, Pick Tennessee Products, and Genuine Mississippi, as well as breeding programs focused on enhancing flavor, quality, and consumer appeal. The Southeast has become a leading center for blueberry innovation and has also advanced cultivar development in crops such as sweet potatoes and watermelons. Research on emerging specialty crops, including passion fruit in Florida and Mississippi, further illustrates opportunities for diversification and value creation within the region. In addition, continued growth in farmers markets, local procurement programs, agritourism, and U-pick operations (particularly for crops such as blueberries) provides producers with opportunities to capture additional value and connect directly with consumers.
References
Comisión Nacional de los Salarios Mínimos (CONASAMI). Mexican Government. (2024). Available at: https://www.gob.mx/cms/uploads/attachment/file/873886/Tabla_de_Salarios_M_nimos_2024.pdf
U.S. Department of Agriculture, Economic Research Service (USDA ERS). (2025a). Farm Labor. Available at: https://ers.usda.gov/topics/farm-economy/farm-labor
U.S. Department of Agriculture, Economic Research Service (USDA ERS). (2025b). Vegetables and Pulses Yearbook Tables. Available at: https://www.ers.usda.gov/data-products/vegetables-and-pulses-data/vegetables-and-pulses-yearbook-tables
U.S. Department of Agriculture, Economic Research Service (USDA ERS). (2026). Fruit and Tree Nuts Yearbook. Available at: https://www.ers.usda.gov/data-products/fruit-and-tree-nuts-data/fruit-and-tree-nuts-yearbook-tables
Rutledge Z., Martin P., Ayoub S., Hall M. 2026. Available online at “Potential Wage Bill Implications of the New AEWR Methodology for H-2A Workers. https://www.choicesmagazine.org/choices-magazine/submitted-articles/potential-wage-bill-implications-of-the-new-aewr-methodology-for-h-2a-workers
Vegetable Grower News and Fruit Grower News. (2025). 2025 FGN Labor Survey Results. Available at: https://fruitgrowersnews.com/catalogs/2025-fgn-labor-survey-results/
Canales, Elizabeth. “Key Challenges and Trends Shaping the Specialty Crop Industry.” Southern Ag Today 6(24.5). June 12, 2026. Permalink
