The Department of Labor has introduced a new rule concerning wage rates for agricultural guest workers, marking a significant step in reforming regulations that have challenged many U.S. farmers. The Adverse Effect Wage Rate (AEWR) Methodology for the Temporary Employment of H-2A Nonimmigrants in Non-Range Occupations will now adjust agriculture wage rates across all 50 states and Puerto Rico.
Zippy Duvall, President of the American Farm Bureau Federation, expressed gratitude towards the Trump administration and officials Lori Chavez-DeRemer and Brooke Rollins for their efforts in addressing what he describes as a "broken system." He emphasized the importance of fair wage rates amid low product prices and high production costs, noting that the new rates would assist farmers in delivering crops to American families.
Duvall also highlighted the potential benefits of the rule for farm families reliant on the H-2A program, expressing hope for increased transparency and predictability during its implementation. He reiterated the organization's commitment to collaborating with Congress on lasting reforms beneficial to both workers and farmers.
The American Farm Bureau Federation has consistently advocated for changes to AEWR due to labor costs comprising nearly half of production expenses. This financial burden complicates domestic food production and can lead to greater reliance on imported goods, particularly for labor-intensive crops.
Efforts to address agricultural labor issues have seen some bipartisan support within Congress. The House Agriculture Committee's Agricultural Labor Working Group identified key challenges and solutions in a report published in 2023. Additionally, a study by professors from the University of California at Berkeley and Davis proposed several recommendations, such as refining adverse effect definitions on domestic workers, updating guest worker program assessments, altering wage calculations for predictability, excluding H-2A wages from AEWR calculations, and accounting for additional employer costs beyond wages.
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