Florida growers face rising costs as farmland continues to decline

Florida growers continue to face rising production costs, competition from imports, and the loss of agricultural land to development, while higher retail prices remain a concern for consumers.

Between 2017 and 2022, Florida lost 2,887 farms and 30,331 acres (12,275 hectares) of farmland to development. According to Robert Guenther, manager of the Florida Tomato Exchange, increasing costs for labour, fertiliser, and fuel are making it more difficult for growers to remain profitable.

“If you can’t decrease costs enough, you’ve got no choice but to raise prices,” Guenther said.

Jeb Smith, president of the Florida Farm Bureau Federation, said profitability remains the key issue for growers. He noted that only 11.8 cents of every consumer dollar spent on fresh produce reaches farmers.

In May, U.S. consumer prices for fresh fruit and vegetables increased 6.7% year on year. Fresh tomato prices rose 32% to US$2.489 per pound from US$1.705 a year earlier. Prices reached a record national average of US$2.689 per pound in April after winter freezes in Florida, disease affecting Mexican production, and higher fuel and fertiliser costs.

Guenther said the 17% antidumping duty on Mexican tomatoes, introduced in July 2025, was intended “to restore fair competition” for U.S. growers.

“In 1994, U.S. growers supplied roughly 80% of the U.S. tomato market. Today, Mexico controls more than 70%,” he said.

He added that labour costs remain a competitive challenge. According to the article, farm workers in Mexico earn the equivalent of about US$4.16 per hour, compared with Florida’s minimum wage of US$14 per hour and the H-2A agricultural wage of US$14.99 per hour.

Florida’s agricultural sector has continued to contract. USDA data show the number of farms fell from 47,590 in 2017 to 44,703 in 2022, while farmland declined from 9,731,731 acres (3.94 million hectares) to 9,701,400 acres (3.93 million hectares). The number of commercial tomato growers has fallen from 300 in 1990 to 55 today, while tomato acreage has declined from 39,499 acres (15,985 hectares) in 2000 to between 27,000 and 30,000 acres (10,927 to 12,141 hectares).

A 2024 University of Florida and 1000 Friends of Florida report projects the state could lose more than 2.2 million acres (890,309 hectares) of agricultural land by 2070, including 723,000 acres (292,615 hectares) of cropland.

Despite these pressures, Smith said some surviving farms are expanding. More than 232,000 acres (93,887 hectares) have also been permanently protected under Florida’s Rural and Family Lands Protection Program.