Yes. Welfare is very attractive compared to minimum wage. One of the main reasons for labour shortages.
One source of free labour however is WOOF programs but you need to offer housing, farm training, cultural immersion and food to young foreigners in exchange for 3-4 days of labour.
Food is so cheap in the USA that I am pretty sure the organic small farmer makes little to no money. It's ridiculous. Why would anyone want to farm?
Local food is food security. Also..all rural areas will become urban soon.(unless human beings procreate responsibly). It makes no sense to stress resources and cause pollution in large swathes of rural farmland. Makes more sense to have farm 'green lungs' and urban food sheds around which urban areas are built...each local food shed taking care of most of food needs of the local population.
Local distribution is dilution of risk if food security is threatened. For this..a certain percentage of land should be set aside for agriculture and ranchland. Urban density must be normalized.
Back to labour issues: I don't think legality of residency matters. There aren't enough people to do farm work in California. Yes..farm labour abuse does occur rarely but we have a good support system and various agencies and checks and safety nets..but it is not sustainable. Farmers would likely remain tight lipped about the practices and how farm is run..I can understand and I probably would do the same if I weren't just a small acreage farmer. I just don't have enough to share. Even if I did..the 'civilians' just won't understand.
I hope things change and we snap out of our collective delusions about our food and where it comes from..