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
Texas A&M economist David Anderson says sharp declines in lamb and mutton production are helping support higher prices.
USDA Undersecretary for Trade Luke Lindberg says expanding export demand is creating new opportunities for U.S. ethanol producers.
More than 500 U.S. counties currently face shortages of large animal veterinarians, according to USDA.
The update comes as congressional leaders continue working toward passage of a new Farm Bill.
Cover crops may improve soil and reduce input needs over time, but producers should budget carefully before expanding acreage.
The report highlighted the role rural development programs play in supporting housing, infrastructure and essential services.

LATEST STORIES BY THIS AUTHOR:

The investigation does not prove wrongdoing, but it raises federal scrutiny of a major cost center for crop producers.
For decades, U.S. agriculture has planned around feeding a growing world. Experts say that trend could reverse course in the next 30 years.
Farm Bureau economist Dr. Faith Parum says agriculture still needs to see U.S. products actively moving into China.
The proposed merger between Union Pacific and Norfolk Southern would create the nation’s first transcontinental railroad connecting the East and West coasts under a single carrier.