The objectives of this pilot study were to study the operation of the farm labor market in the Lower Rio Grande Valley of Texas, to analyze the functions of the labor market institutions in the Valley, and to formulate a series of policy recommendations to assist in relieving the short and long run problems of both farm workers and employers. Interviews were conducted with area residents--community, governmental, agricultural, and labor leaders; farm operators; crew leaders; private labor recruiters; and farm worker household heads. The findings indicated that the Texas Employment Commission (TEC) tends to be used primarily as a last resort by farm workers interviewed because of the low probability of jobs being available. Employers are more likely to use the TEC placement facilities, mainly to satisfy peak seasonal labor requirements, than were workers. Most of the household heads migrated out of the Valley and, on the average, were employed 30 weeks, were unemployed 13 weeks, and were not in the labor force 9 weeks in 1968. Annual earnings of household heads was $1,695, while family income averaged $3,350, reflecting earnings of several wage earners. Some recommendations were to improve the scheduling of work for migrants, to eliminate or control commuters, to improve agricultural employment practices, and to encourage permanent migration or resettlement. (HBC)