A flow of recent data from the U.S. government has made one thing strikingly clear: A surge in consumer spending is fueling strong growth, demonstrating a resilience that has confounded economists, Federal Reserve officials and even the sour sentiments that Americans themselves have expressed in opinion polls.

Spending by consumers rose by a brisk 0.4% in September the government said Friday — even after adjusting for inflation and even as Americans face ever-higher borrowing costs.

Economists caution that such vigorous spending isn’t likely to continue in the coming months. Many households have been pulling money from a shrinking pool of savings. Others have been turning increasingly to credit cards. And the additional savings that tens of millions of households amassed during the pandemic — from stimulus aid and reduced opportunities to travel, dine out and visit entertainment venues — are nearly depleted, economists say.

Still, the truth is no one knows where things go from here, given the unusual nature of the post-pandemic economy. The “death of the consumer” and an ensuing recession have been forecast by most economists for at least a year. So far, not only is no recession in sight but consumers as a whole appear to be in robust health. Spending might cool in the coming months, yet it’s far from clear it will collapse.

On Thursday, the government said the economy accelerated at a 4.9% annual rate in the July-September quarter, the fastest such rate since 2021, on the back of a jump in Americans’ spending. People spent on used cars and restaurant meals, airfares and hotel rooms. Much of it, even after adjusting for higher prices, was for discretionary items that suggested that many people feel confident in their finances and job security.

The durability of that spending has caught the attention of Fed officials, who have signaled that they will keep their key interest rate unchanged when they meet this week. But they’ve also made clear that they are monitoring the economic data for any sign that inflation could reignite and require further rate hikes.

“I have been consistently surprised at the resilience of consumer spending,” Christopher Waller, an influential member of the Fed’s board, said in a speech this month.

In the meantime, businesses, especially those in the sprawling service sector, are benefiting from what still appears to be pent-up demand, likely driven by higher-income earners, after the restrictions of the pandemic. Last week, Royal Caribbean Group reported robust quarterly earnings. Travelers crowded their cruise ships and spent more even as the company raised prices.

“The acceleration of consumer spending on experiences [has] propelled us towards another outstanding quarter,” said CEO Jason Liberty. “Looking ahead, we see accelerating demand.”

So what’s behind the outsize gains, so far? Economists point to several drivers: Sturdy hiring and low unemployment, along with healthy finances for most households emerging from the pandemic. Wealthier households, in particular, have enjoyed substantial growth in home values and stock portfolios, which are likely juicing their spending.

Steady hiring has sent the unemployment rate down to a near-five-decade low of 3.8% and lifted to a record high the proportion of women in their prime working years — ages 25 through 54 — who are employed. Measures of layoffs are near historical lows. More jobs mean more income, which generally means more spending.

“We continue to believe that you shouldn’t bet against the consumer until actual job losses are on the horizon,” said Tim Duy, chief U.S. economist at SGH Macro Advisers.

In the July-September quarter, Americans ramped up spending on durable goods — furniture, appliances, jewelry and luggage — that people typically cut back on if they’re worried about their jobs or the economy.

With inflation slowing — it’s at a still-high 3.7%, down from a peak of 9.1% in June 2022 — average wages are starting to outpace price gains. By some measures, wage growth hasn’t yet fully offset the inflation surge that began in 2021. But since late last year, pay has risen faster than prices, likely fueling some spending.

In many lower-paying industries, like hotels, restaurants and warehouses, companies have struggled to find and keep workers and have raised pay accordingly. Julia Pollak, chief economist at ZipRecruiter, calculates that for the lowest-paid 10% of workers, wages have jumped 25% since the first quarter of 2020, when the pandemic began. That’s well ahead of the 18% increase in prices over that time.

And most households started 2023 in better shape than they were in before the pandemic erupted, according to a report from the Fed. The net worth of the median household — the midpoint between the richest and poorest — jumped 37% from 2019 through 2022 as home prices shot higher and the stock market rose. That was the biggest surge on records dating back more than 30 years.

Most of the savings that Americans have accumulated in the past three years have flowed to the wealthiest households, who have splurged on travel and other experiences. Typically, economists say, the wealthiest one-fifth of Americans account for about two-fifths of all spending.

The net worth of the richest one-tenth of households leaped by $28 trillion — or about one-third — from the first quarter of 2020 to the second quarter of 2023, according to the Fed. The poorer one-half of Americans gained a bigger percentage increase but in total dollars much less, from about $2 trillion to $3.6 trillion. (Those figures aren’t adjusted for inflation.)

“When wealth is growing by the amount that it has been the past three years … I do think that it’s playing a larger role in this spending strength than maybe we thought it would,” said Sarah Wolfe, U.S. economist at Morgan Stanley.

Small-business owners like Bret Csencsitz, managing partner of Gotham Restaurant in New York City, can attest to that. High-dollar spending by middle-age customers has helped replace many of his older patrons who moved out of the city during COVID. These customers, who typically work in technology and finance, are buying $150 to $200 bottles of wine and spending a little over $200 on steak for two.

The average per-person check is up over 20% to roughly $145 compared with the pre-pandemic days, he added, and he has had groups of up to 60 people holding dinners at his restaurant.

“People are back,” he said. “There’s more energy.”

Aditya Bhave, senior economist at Bank of America, noted that the spending isn’t all driven by the affluent. Spending on the bank’s credit and debit cards by households with incomes below $50,000 has risen faster than spending by higher-earning clients.

Some Americans, while keeping a close watch on their finances, still feel they have room to indulge themselves. Consider Valerie Zaffina, a 74-year-old retired teacher who was picking up a piece of jewelry last week at a Kohl’s store in Ramsey, New Jersey. She said she and her husband live on fixed incomes and are cautious spenders.

But Zaffina has nevertheless decided on one big splurge — about $5,000 to decorate her rental apartment, including a $2,500 couch and a $600 rug. It’s her first major decorating project in 18 years.

“I had kind of a frustrating year, and I wanted to do something for myself,” she said. “So, yeah, I’m redecorating. I’m in the throes of that, but I’m sticking to a budget.”

Many analysts still warn of a new crop of headwinds facing consumers and the economy. Nearly 30 million student loan borrowers had to start paying their loans this month, for example. And government dysfunction in Washington could lead to a government shutdown next month.

A report Friday showed that while inflation-adjusted income fell last month along with the savings rate, consumers still ramped up their spending. That trend, economists say, is unsustainable.

Even so, those challenges may not prove as damaging as feared. Student loan payments, for example, jumped even before an Oct. 1 deadline for resuming them, Bhave noted. And few borrowers appear to have taken advantage of a 12-month grace period the Biden administration put in place, suggesting that most borrowers can afford to resume paying the money back — at least for now.

And executives at Visa, which reported strong earnings and a surge of spending by their U.S. credit card customers overseas in the third quarter, have also downplayed the likely impact of student loan repayments.

The company isn’t “factoring in any impacts” from loan repayments “because we’ve yet to see any meaningful impact,” said Visa’s chief financial officer, Christopher Suh. “Consumer spending across all segments from high to low has remained stable since March.”

“There’s a lot of gloom and doom,” around the consumer, Bhave said. “And yet the data keep surprising to the upside.”
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All About America explores American culture, politics, trends, history, ideals and places of interest.

Alaska workers are the happiest in the nation, thanks in part to higher wages and shorter workweeks, according to a new report from SelectSoftware Reviews, a human resource platform.

Researchers looked at several factors to come up with their list, including wages, quit rates, commute times, work hours, injuries and paid time off.

Alaska employees enjoy average workweeks of 31.3 hours, average annual salaries of $52,000 and an overall job satisfaction score of 69.96 out of 100.

Job satisfaction is critical to happiness, according to Miriam Liss, professor of psychology at the University of Mary Washington in Fredericksburg, Virginia.

“A meaningful job allows you to feel competence and ability, able to do the tasks that are meaningful to you,” Liss says. “If you’re having a more meaningful, purposeful life, you are going to experience pleasure.”

Other states with the happiest workers include Rhode Island, North Dakota, Colorado and Minnesota, according to the report.

Second place Rhode Island has a low quit rate, and the lowest injury rate of any state. North Dakota, which came in third, has an annual wage of $47,400 and an average commute of just 17.6 minutes.

The unhappiest workers are in Georgia, Texas, Florida, South Carolina and New York.

Georgia has the lowest job satisfaction, with an overall score of 29.62. Texas has the second-longest average workweek of 43.6 hours. In Florida, the average worker earns $18 per hour compared with Alaskans, who earn $32 per hour. Meanwhile, South Carolina workers make $13,000 less in annual salary than people in Alaska.

“Experiencing poverty definitely can make you unhappy,” Liss says, “because your basic needs aren’t met … and you don’t have the ability to have a lifestyle that gives you some autonomy, allows you to make choices.”

New York, which has the longest commute time of any state, came in fifth on the list of unhappiest workers.

“These results demonstrate the considerable impact a location can have on how workers feel about their job, whether that is due to state laws, commute times, or wages,” the report said. “It emphasizes the importance for employers to create environments where employees find genuine fulfillment and can thrive.”

 
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As October gives way to November, Halloween is followed by the celebration of the Day of the Dead in Mexican American communities across the U.S. to honor the memory of loved ones who have died. Genia Dulot visited one of the largest events, the Dia de los Muertos — Day of the Dead — at Hollywood Forever Cemetery in Los Angeles.
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The United States on Sunday pressed Israel to protect civilians in Gaza and pushed for an immediate increase in humanitarian aid, amid a growing outcry over the human costs of Israel’s three-week bombardment of the enclave.

President Joe Biden told Israeli Prime Minister Netanyahu in a call that Israel has a right to defend itself and should do so in a way that is consistent with international law on protecting civilians, the White House said.

Biden and Netanyahu discussed efforts to protect the more than 200 hostages seized by Palestinian Hamas militants in a surprise attack on Israel on Oct. 7 that killed 1,400 people.

The White House said Biden also “underscored the need to immediately and significantly increase the flow of humanitarian assistance to meet the needs of civilians in Gaza,” as supplies dwindle in the besieged coastal enclave.

With the death toll in the Gaza Strip in the thousands and climbing, Biden’s administration has been under increasing pressure to make clear that its steadfast support of Israel does not translate into a blanket endorsement of all that its ally is doing in the impoverished enclave.

In television interviews earlier on Sunday, White House national security adviser Jake Sullivan said Israel has a responsibility to protect the lives of innocent people in Gaza.

Washington was asking hard questions of Israel, including on issues surrounding humanitarian aid, distinguishing between terrorists and innocent civilians and on how Israel is thinking through its military operation, Sullivan said.

“What we believe is that every hour, every day of this military operation, the IDF (Israel Defense Forces), the Israeli government should be taking every possible means available to them to distinguish between Hamas terrorists who are legitimate military targets and civilians who are not,” he said on CNN.

Sullivan also said Netanyahu has a responsibility to “rein in” extremist Jewish settlers in the Israeli-occupied West Bank. “It is totally unacceptable to have extremist settler violence against innocent people in the West Bank,” he said.

Biden is facing pressure from within his own Democratic Party to call for a cease-fire.

As Israel’s largest military backer, the United States bears some responsibility for its actions in Gaza, U.S. Representative Pramila Jayapal, leader of the Congressional Progressive Caucus, said on NBC’s “Meet the Press.”

“We are losing credibility,” Jayapal said. “And, frankly, we’re being isolated in the rest of the world.”

The attack from Gaza’s Hamas rulers unleashed a wave of aerial bombardment from Israel and an incipient ground operation.

Medical authorities in the Gaza Strip, which has a population of 2.3 million people, say more than 8,000 Palestinians have been killed in Israel’s campaign to obliterate Iran-backed Hamas.

Hamas militants have embedded themselves among the Palestinian population and in civilian infrastructure, making an operation against them extremely difficult, Sullivan said.

“That creates an added burden for Israel, but it does not lessen Israel’s responsibility under international humanitarian law, to distinguish between terrorists and civilians, and to protect the lives of innocent people, and that is the overwhelming majority of the people in Gaza,” Sullivan said.

With supplies of food, water and medicines running low, thousands of Gaza residents broke into U.N. warehouses and distribution centers to get food.

There has been a mounting international outcry over the toll from the bombing and growing calls for a “humanitarian pause” to allow aid to reach Gaza civilians.

In an interview on CBS, Sullivan was asked if there was “daylight” between the United States and the Netanyahu government, Sullivan responded, “”We talk candidly, we talked directly, we share our views in an unvarnished way and we will continue to do that.”

“But sitting here in public, I will just say that the United States is going to make its principles and propositions absolutely clear, including the sanctity of innocent human life. And then we will continue to provide our advice to Israel in private.”
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United Auto Workers President Shawn Fain met Sunday afternoon with local union leaders from Ford to start the process of ratifying a new contract, while bargaining continues at General Motors following a setback Saturday.

Fain on Saturday ordered a walkout at GM’s Spring Hill, Tennessee, engine and assembly plant, criticizing management’s “unnecessary and irresponsible refusal to come to a fair agreement.”

It is not clear what derailed GM and the UAW’s progress toward an agreement patterned after earlier deals at Ford and Chrysler-owner Stellantis, but sources said one key issue was retiree pension costs. The deals won workers a record 25% jump in wages over the 4½-year contract and allowed the automakers to restart their profitable truck assembly lines.

The Ford UAW deal includes a $5,000 ratification bonus, special retirement incentive packages and gives newly hired temporary workers a faster path to full-time status and the top union pay rate, according to a summary document seen by Reuters. Workers also get a $1,500 voucher toward a vehicle purchase and heftier company contributions for retirement benefits.

Employment status

Existing Ford temporary workers immediately become permanent employees on track for top pay within three years, and the deal creates a pathway for workers at joint ventures, battery plants, and Ford’s BlueOval city electric vehicle complex in Tennessee to join the union and be covered under the master contract, sources told Reuters.

GM and Ford shares have fallen roughly a fifth since the beginning of the strike on September 15. Stellantis shares are down just 1%.

GM said it was disappointed by the UAW decision to strike Spring Hill.

The Spring Hill walkout could hobble GM’s large pickup production as well as the assembly of other popular GM vehicles. Ripple effects from an extended Spring Hill strike could boost the costs of the stalemate for GM well beyond the $400 million a week the company reported last week.

UAW counsel Benjamin Dictor on Sunday morning posted on the social media site X, formerly known as Twitter: “All my homies hate companies that won’t agree to fair contracts for their workers.” He later deleted the post.

GM is now the only Detroit automaker without a deal. Stellantis reached an agreement with the UAW on Saturday and Ford on Wednesday.

Progress toward resolving the disputes between UAW and GM could slow on Sunday because Fain is scheduled to attend meetings with Ford local officials in the Detroit suburb of Taylor, Michigan, and give a video update on the Ford deal Sunday night.  

Union leaders will then fan out to regional meetings to explain the deals to members, who will then vote on whether to approve it.

UAW leaders cannot take ratification votes for granted. Last month, UAW workers at Mack Truck’s U.S. operations overwhelmingly rejected a deal recommended by Fain, while Mack said Thursday no new talks are scheduled. In 2015, UAW members at what is now Stellantis voted down a contract endorsed by union leadership.

Fain said on Saturday that local union leaders at Stellantis plants will come to Detroit on November 2 before the agreement is sent to members for ratification.

Big checkbook

Fain has been especially tough on Ford through the contract negotiations, despite the automaker having cultivated a collaborative relationship with the UAW in the past.

At one point, he told Ford Chief Executive Jim Farley to “Go get the big checkbook,” declaring that the “days of the UAW and Ford being a team to fight other companies are over.”

In addition to the hike in general wages, Fain has said the lowest-paid temporary workers at Ford would enjoy raises of more than 150% over the contract term and employees would reach top pay after three years. The union also won the right to strike over future plant closures.

The UAW also succeeded in eliminating lower-pay tiers for workers in certain parts operations at Ford, an issue Fain highlighted from the start of the bargaining process.

The Ford contract would reverse concessions the union agreed to in a series of contracts since 2007, when GM and the former Chrysler were skidding toward bankruptcy, and Ford was mortgaging assets to stay afloat.

“We told Ford to pony up and they did,” Fain said in a video post last week.
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It hardly mattered that “Five Nights at Freddy’s” was released simultaneously in theaters and on streaming this weekend. Fans flocked to movie theaters across the country to see the scary video game adaptation on the big screen, which made $78 million to top the North American box office, according to studio estimates Sunday.

Universal Pictures bet on a day-and-date release on the weekend before Halloween, sending it to 3,675 theaters in the U.S. and Canada, while also making it available for Peacock subscribers, the subscription streaming service owned by NBCUniversal. The movie also opened in 64 markets internationally, where it’s expected to gross $52.6 million, giving the film a $130.6 million global launch – the biggest of any horror released this year.

“It was an extraordinary debut,” said Jim Orr, the president of domestic distribution for Universal, who praised Blumhouse, the filmmakers and the studio’s marketing department for the targeted campaign.

“Our marketing department continues to be one of the great superpowers we have at Universal,” he said.

Blumhouse, the company behind “Paranormal Activity,” “Get Out” and recent horror hits like “M3GAN” and “The Black Phone,” produced “Five Nights at Freddy’s,” which was directed by Emma Tammi and stars Josh Hutcherson, Mary Stuart Masterson and Matthew Lillard. The popular video game series, in which a security guard has to fend off murderous animatronic characters at a rundown family pizza restaurant, Freddy Fazbear’s Pizza, was created by Scott Cawthon and first released in 2014.

While the game’s fanbase was strong, and passionate, the movie took many years to make. Producer Jason Blum said in an interview with IGN earlier this year that he was made fun of for pursuing an adaptation.

“Everyone said we could never get the movie done, including, by the way, internally in my company,” Blum said. They made the film with a reported $20 million production budget.

And it paid off: “Five Nights at Freddy’s” is his company’s biggest opening of all time, surpassing “Halloween’s” domestic and global debut. It’s also Blumhouse’s 19th No. 1 debut, which Orr noted is an “amazing accomplishment.”

The opening weekend audience was predominately male (58%) and overwhelmingly young, with an estimated 80% under the age of 25 and 38% between the ages of 13 and 17.

While the numbers aren’t surprising for anyone who knows the game’s audience, it is still notable for a generation not known for making theatrical moviegoing a priority.

“It’s great to get that kind of audience in theaters,” Orr said.

Audiences gave the film an A- CinemaScore, which could be promising for future weekends too.

“It’s a very young demographic,” said Paul Dergarabedian, the senior media analyst for Comscore. “It won’t be lost on any of the other studios or video game manufacturers. This door has been kicked wide open.”

It’s also notable that so many chose theaters even though it was also available to watch at home.

“In some cases streaming can be additive and complimentary to theatrical,” Dergarabedian said. “Clearly audiences wanted that communal experience.

“Five Nights at Freddy’s” did not score well with critics, however. It currently has a dismal 25% on Rotten Tomatoes. AP’s Mark Kennedy wrote that it “has to go down as one of the poorest films in any genre this year.” But like many other horror movies, it appears to be critic-proof.

In second place, “Taylor Swift: The Eras Tour” is expected to cross $200 million in global grosses by the end of Sunday, having added $14.7 million domestically and $6.7 million internationally this weekend. The concert film, distributed by AMC Theatres, is in its third weekend in theaters where it is only playing from Thursday through Sunday, though there will be “special Halloween showtimes” on Tuesday at a discounted price of $13.13.

Third place went to Martin Scorsese’s “Killers of the Flower Moon,” which added $9 million in its second weekend, bringing its total domestic earnings to $40.7 million, according to Paramount. With an additional $14.1 million from international showings, the film’s global total now stands at over $88 million.

Angel Studios’ “After Death,” a Christian documentary film about people who have had near death experiences, opened in fourth place to $5.1 million from 2,645 locations.

And “The Exorcist: Believer” rounded out the top five with $3.1 million in its fourth weekend, bringing its domestic earnings to just shy of $60 million.

Several of the fall’s high-profile films also launched in very limited release this weekend, including Alexander Payne’s “The Holdovers” and Sofia Coppola’s “Priscilla.” Both opened exclusively in New York and Los Angeles and will expand in the coming weeks.

Focus Features’ “The Holdovers,” starring Paul Giamatti as a curmudgeonly ancient history teacher at a New England prep school, debuted in six theaters where it earned an estimated $200,000.

Coppola’s “Priscilla,” about Priscilla Presley’s life with Elvis, also opened on four screens in New York and Los Angeles, where it averaged $33,035 per screen. With a cumulative gross of $132,139, the A24 release starring Cailee Spaeny and Jacob Elordi expands nationwide next weekend.

“It was an eclectic and exciting weekend for moviegoers,” Dergarabedian said. “If you couldn’t find a film to your liking, you’re not looking hard enough.”

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Comscore. Final domestic figures will be released Monday.

1. “Five Nights at Freddy’s,” $78 million.

2. “Taylor Swift: The Eras Tour,” $14.7 million.

3. “Killers of the Flower Moon,” $9 million.

4. “After Death,” $5.1 million.

5. “The Exorcist: Believer,” $3.1 million.

6. “Paw Patrol: The Mighty Movie,” $2.2 million.

7. “Freelance,” $2.1 million.

8. “The Nightmare Before Christmas” (re-release), $2 million.

9. “Saw X,” $1.7 million.

10. “The Creator,” $1 million.
    …

Alan Mazzotti can see the Rocky Mountains about 30 miles west of his pumpkin patch in northeast Colorado on a clear day. He could tell the snow was abundant last winter, and verified it up close when he floated through fresh powder alongside his wife and three sons at the popular Winter Park Resort.

But one season of above-average snowfall wasn’t enough to refill the dwindling reservoir he relies on to irrigate his pumpkins. He received news this spring that his water delivery would be about half of what it was from the previous season, so he planted just half of his typical pumpkin crop. Then heavy rains in May and June brought plenty of water and turned fields into a muddy mess, preventing any additional planting many farmers might have wanted to do.

“By time it started raining and the rain started to affect our reservoir supplies and everything else, it was just too late for this year,” Mazzotti said.

For some pumpkin growers in states like Texas, New Mexico and Colorado, this year’s pumpkin crop was a reminder of the water challenges hitting agriculture across the Southwest and West as human-caused climate change exacerbates drought and heat extremes. Some farmers lost 20% or more of their predicted yields; others, like Mazzotti, left some land bare. Labor costs and inflation are also narrowing margins, hitting farmers’ ability to profit off what they sell to garden centers and pumpkin patches.

This year’s thirsty gourds are a symbol of the reality that farmers who rely on irrigation must continue to face season after season: they have to make choices, based on water allotments and the cost of electricity to pump it out of the ground, about which acres to plant and which crops they can gamble on to make it through hotter and drier summers.

Pumpkins can survive hot, dry weather to an extent, but this summer’s heat, which broke world records and brought temperatures well over 100 degrees Fahrenheit (38 degrees Celsius) to agricultural fields across the country, was just too much, said Mark Carroll, a Texas A&M extension agent for Floyd County, which he calls the “pumpkin capital” of the state.

“It’s one of the worst years we’ve had in several years,” Carroll said. Not only did the hot, dry weather surpass what irrigation could make up for, but pumpkins also need cooler weather to be harvested or they’ll start to decompose during the shipping process, sometimes disintegrating before they even arrive at stores.

America’s pumpkin powerhouse, Illinois, had a successful harvest on par with the last two years, according to the Illinois Farm Bureau. But this year it was so hot into the harvest season in Texas that farmers had to decide whether to risk cutting pumpkins off the vines at the usual time or wait and miss the start of the fall pumpkin rush. Adding to the problem, irrigation costs more as groundwater levels continue to drop — driving some farmers’ energy bills to pump water into the thousands of dollars every month.

Lindsey Pyle, who farms 950 acres of pumpkins in North Texas about an hour outside Lubbock, has seen her energy bills go up too, alongside the cost of just about everything else, from supplies and chemicals to seed and fuel. She lost about 20% of her yield. She added that pumpkins can be hard to predict earlier in the growing season because the vines might look lush and green, but not bloom and produce fruit if they aren’t getting enough water.

Steven Ness, who grows pinto beans and pumpkins in central New Mexico, said the rising cost of irrigation as groundwater dwindles is an issue across the board for farmers in the region. That can inform what farmers choose to grow, because if corn and pumpkins use about the same amount of water, they might get more money per acre for selling pumpkins, a more lucrative crop.

But at the end of the day, “our real problem is groundwater, … the lack of deep moisture and the lack of water in the aquifer,” Ness said. That’s a problem that likely won’t go away because aquifers can take hundreds or thousands of years to refill after overuse, and climate change is reducing the very rain and snow needed to recharge them in the arid West.

Jill Graves, who added a pumpkin patch to her blueberry farm about an hour east of Dallas about three years ago, said they had to give up on growing their own pumpkins this year and source them from a wholesaler. Graves said the pumpkins she bought rotted more quickly than in past years, but it was better than what little they grew themselves.

Still, she thinks they’ll try again next year. “They worked perfect the first two years,” she said. “We didn’t have any problems.”

Mazzotti, for his part, says that with not enough water, you “might as well not farm” — but even so, he sees labor as the bigger issue. Farmers in Colorado have been dealing with water cutbacks for a long time, and they’re used to it. However, pumpkins can’t be harvested by machine like corn can, so they require lots of people to determine they’re ripe, cut them off the vines and prepare them for shipping. 

He hires guest workers through the H-2A program, but Colorado recently instituted a law ensuring farmworkers to be paid overtime — something most states don’t require. That makes it tough to maintain competitive prices with places where laborers are paid less, and the increasing costs of irrigation and supplies stack onto that, creating what Mazzotti calls a “no-win situation.”

He’ll keep farming pumpkins for a bit longer, but “there’s no future after me,” he said. “My boys won’t farm.” 
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