The US Department of Labor (DOL) has rolled out a new rule changing how farmworker wages are calculated. The move is meant to make pay fairer for workers and more predictable for farmers, updating a decades-old method with more accurate, state-level data. Proponents say it will help stabilize grocery prices and the costs that farmers face to grow the nation’s food supply. However, farm groups are saying that Congress still needs to make these farmula’s permanent so growers can plan for the future.
Earlier this month, the DOL issued its’ “final interim rule” (IFR) on the Adverse Effect Wage Rate (AEWR). This amends regulations on the certification of agricultural labor or services that H2A workers perform. The AEWR Agricultural Labor Coalition is now urging Congress to make the reforms permanent.
The new rule replaces the United States Department of Agriculture (USDA) Farm Labor Survey with the Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) system, according to the press release. BLS data considers both skill level and cost of housing to the employer.
“This proves that federal government agencies and Cabinet can provide solution driven results for constituents, but Congress must also act to make things more permanent so farms and ranches can plan and future proof their organizations as the business and trade continues to shift,” said Michelle Grainger, executive director of the North Carolina Sweetpotato Commission, in a press release, speaking on behalf of the 34 agricultural organizations. “We applaud the current work to get this far, but we can’t run farms or feed families on short-term fixes that change with every administration.”
The Coalition calls on Congress to establish a long-term, market-based AEWR framework that offers predictability for growers while upholding protections for US workers. This would enable growers to plan years in advance for inputs, crop rotations, and trade commitments, rather than making decisions on a season-by-season basis, which would contribute to restoring stability in rural communities that form the foundation of the national economy, according to the press release. Comparing the instability created by temporary labor regulations and the fallout from the current government shutdown, the Coalition asserts that both hinder investment, erode confidence, and put national interests at risk of long-term harm.
“This revision to the H-2A wage formula is a much-needed modernization,” Kelly Lester, policy analyst for the John Locke Foundation, told the Carolina Journal. “By shifting from the outdated Farm Labor Survey to the BLS OEWS data and distinguishing wages by skill level, the rule better aligns pay with the actual duties performed. It also incorporates a housing adjustment to acknowledge non-cash benefits. Taken together, these changes reduce distortion, lower undue cost burdens on farmers, and create a more transparent, market-based wage system.”
Over the past three years, growers have experienced a surge in labor costs of more than 30% in some areas, resulting in reduced planting, a shift of production overseas, and higher prices for consumers, according to the press release.
In an exclusive comment to the Carolina Journal, Grainger said:
“Sweetpotatoes are not only North Carolina’s state vegetable, it’s also recognized as one of its signature crops. Our state proudly produces nearly 65% of the nation’s supply, but labor costs have become one of our biggest challenges. The Department of Labor’s interim final rule (IFR) is an important step forward in making the system more fair and predictable for growers, but long-term success depends on Congress enacting permanent reform. Our farms are family farms; they can’t plan for future crops, labor needs, or export commitments on short-term rules. North Carolina agriculture needs stability to stay competitive and maintain the positive economic impact of more than $111 billion statewide as we work to continue feeding families here and around the world.”
— Michelle Grainger, Executive Director, North Carolina Sweetpotato Commission
The AEWR Agricultural Labor Coalition represents 34 organizations across seven states, three national associations, seven state advocacy groups, and 25 different crops. These organizations collectively account for more than $824 billion in agricultural economic impact and support over six million jobs across seven states.
Concerns have been raised that the agricultural workforce is being impacted due to President Donald Trump’s ICE raids.
“US agricultural employers need a legal and stable workforce to support their farming operations, and persistent labor shortages and increases in production costs will only harm US competitiveness, threaten food production, drive up consumer prices, and create instability in rural communities,” reads the Federal Registrar filing. “Without prompt action, agricultural employers will face severe labor shortages, resulting in disruption to food production, higher prices, and reduced access for US consumers, particularly to fresh fruit and vegetables. Further, the Department concludes that qualified and eligible US workers will not make themselves available in sufficient numbers, even at current wage levels, to fill the significant labor shortage in the agricultural sector.”
Despite comments from USDA Secretary Brooke Rollins earlier this year that the workforce would be 100% American, experts assert that Americans lack both the skills and the willingness to fill these jobs.
“America may have a strong history in agriculture, but the reality is that less than 1% of domestic workers choose to work in agriculture,” continued Lester. “While machines can help with some problems in agricultural labor, many crops, such as sweet potatoes, must be harvested by hand due to setbacks in the accuracy of harvesting technology. Many hands are needed in order to make this happen. Unless we can make agriculture preferable to steadier year-round jobs like construction, I doubt American labor supply will be enough to meet ag labor demand.”
A recent report, “Harvest on Hold,” from the John Locke Foundation examines the labor shortage in the agricultural industry and proposes policy solutions to address it. The report acknowledges the high costs of the H2A visa program as one of the challenges to the labor shortage.
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