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
Low farmer shares reflect deep consolidation across the food chain, keeping producer returns thin even as retail food prices remain high.
Corn exports remain strong, while soybeans and wheat shift week to week on river conditions and global demand.
The National Milk Producers Federation will launch a new advocacy campaign to secure a final vote, urging House lawmakers to approve the bill as soon as they return from the Thanksgiving recess.
AFBF Vice President of Public Policy and Economic Analysis, Dr. John Newton, explains the factors contributing to the growing financial strain in the ag sector and the urgent need for swift economic support.
Olivia Bury, AgriSafe Network Behavioral Health Coordinator, shares about AgriSafe Network’s resources created to support farmers and rural Americans.

LATEST STORIES BY THIS AUTHOR:

RealAg Radio host Shaun Haney shares insights from a recent study, discusses EV market access in Canada, and highlights other market opportunities top of mind for Canadian producers.
USMEF President and CEO Dan Halstrom shares how recent trade talks are influencing U.S. red meat global sales and the importance of key trade agreements like the USMCA.
Iowa Ag Secretary Naig recaps discussions surrounding a potential federal aid package for farmers and shares insights on producer sentiment in the Heartland.
Dr. Jeffrey Gold, President of the University of Nebraska, joined RFD-TV to discuss coping strategies for those aching joints.
FarmHER Katey Jo Evans of The Frozen Farmer joins us for a sneak peek of the latest episode of Dirt Diaries: The FarmHER + RanchHER Podcast.
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.