Action on Labor: Farmers are desperately calling for reform and the Adverse Effect Wage Rate

Ag labor reform will be another hot ticket item this year on the Hill. Farmers and ranchers have been looking for support for some time, and now some say they are getting desperate.

“The situation is dire enough for our growers that we’re taking an approach of looking at any and all options, whether it be the broad reform that we ultimately need or even more targeted reforms or short-term solutions like a freeze to the adverse effect wage rate for one or two years that would at least provide some relief while we continue to push for that broader reform that we need,” said Kate Tynan, Senior Vice President at the Northwest Horticultural Council.

Farmers have long complained about the adverse effect wage rate, but Tynan says that is not the only issue.

“One thing I will note is some of the regions that have a lower AEWR than those of us in Washington, Oregon, and California, and states like that have seen significant increases in recent years. So, while their AEWR might still be quite a bit lower than ours, as our growers can tell you, any time you have to absorb a nine percent increase in your wage rate from one year to the next, that’s a big problem.”

Tynan says something needs to change soon, pointing to the last significant labor reform passed by Congress nearly 40 years ago. USDA recognizes the issue, too, with economists saying labor will be the highest cost again next year.

“That’s been one of the inputs which is not expected to moderate in price, and that input remained strong, so that means you’re facing a lot of competition from overseas; that trend of horticultural product imports,” said Seth Meyer.

To try and help, Washington state Congressman Dan Newhouse is again pushing his Farm Workforce Modernization Act. It has been brought up several times now over the last few years, but failed to gain much traction. Newhouse wrns without an adequate workforce, crops could go unharvested, placing the food supply chain at further risk.

Related Stories
USDA’s 2026 Food Price Outlook projects food prices rising 3.1%, with higher beef costs and falling egg prices shaping consumer trends.
House Agriculture Chairman Glenn “GT” Thompson says the 2026 Farm Bill is bipartisan, with 82% of the bills incorporated into it receiving bipartisan support.
According to the Louisiana Department of Agriculture and Forestry, fire crews remain on alert statewide as Red Flag conditions persist. Officials warn that even contained fires can reignite quickly under current weather conditions.
Glyphosate and phosphorus are deemed critical to U.S. national defense, ensuring farmers’ access while signaling a shift toward regenerative agriculture. RealAg Radio host Shaun Haney shares insight on the Trump Administration’s move and what it could mean for U.S. farmers moving forward.
UNL Extension’s Troy Walz discusses the Nebraska Ranch Practicum, where sessions are held, how producers can get involved, and what ranchers can gain from participating in the program.
The Ranger Road Fire in the Oklahoma Panhandle is now 65% contained after burning nearly 300,000 acres over the past week. Kevin Charleston of Specialty Risk Insurance Agency discusses wildfire recovery, livestock insurance considerations, and the importance of preparedness for producers across the Southern Plains.

LATEST STORIES BY THIS AUTHOR:

University of Nebraska President Dr. Jeffrey Gold discusses the ongoing measles outbreak in the United States and the importance of vaccination awareness on this week’s Rural Health Matters.
Federal aid helps, but producers will bear most of the losses. Balance sheets may look stable, but margins remain fragile without policy support.
Biofuel and corn producers await proposal as Renewable Fuels Association pushes for expanded ethanol access.
Lori Stevermer with the National Pork Producers Council reacts to the USDA’s speedline proposal, the new Farm Bill’s fix for California’s Prop-12, and other policy developments impacting the pork industry.
Weskan Grain CEO Will Bramblett discusses the antitrust lawsuit filed by grain farmers and agribusinesses, and its potential implications on rail competition and market access.