California Farm Labor Shortage 'Worst It's Been, Ever'

There's a different sort of drought plaguing California, the nation's largest farm state. It's $38 billion agricultural sector is facing a scarcity of labor. "This year is the worst it's been, ever," said Craig Underwood, who farms everything from strawberries to lemons to peppers, carrots, and turnips in Ventura County.

Some crops aren't get picked this season due to a lack of workers. "We just left them in the field," he said. The Western Growers Association told CNBC its members are reporting a 20 percent drop in laborers this year. Stronger border controls are keeping workers from crossing into the U.S. illegally, and the current guest worker program is not providing enough bodies.

"We have 100 fewer people this year," said Sergio Diaz, who provides workers under contract for growers. "We're having difficulty finding people to do this work." The lack of workers is forcing farmers to pay more. In one of Underwood's fields, pickers are harvesting peppers for $9.25 a hour, or $5 a bucket, whichever is more. Craig Underwood said his workforce is aging and starting to retire, and no one is coming in to replace them. Read more >>