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
A group of 32 Democratic senators is urging ag lawmakers to halt their opposition to Prop 12 in the next Farm Bill.
In honor of Rural Road Safety Week, we’re highlighting some commonly overlooked hazards on rural roads, where 40 percent of all fatal crashes in the United States occur.
The network includes labs across the country that track diseases like New World Screwworm, which could see a rise in cases with hurricane season approaching.
Sen. Roger Marshall (R-KS) hosted the talks. The senator and doctor joined us on Wednesday on RFD-TV’s Market Day Report to recap the critical discussions surrounding human health in America.
Ag Secretary Brooke Rollins made the announcement yesterday at the grand opening of a new food safety lab in Missouri, where researchers will do Listeria testing.
$15 billion in U.S. energy, $4.5 billion ag products, 50 Boeing jets—plus a 19% tariff on Indonesian exports in exchange for U.S. market access.

LATEST STORIES BY THIS AUTHOR:

RanchHERs Lyn & Sherrie Ray breed horses and raise cattle in New Mexico, while also helping to mentor the next generation of ag leaders
Today in Wyoming, Rural Media Group’s late founder, Patrick Gottsch, will be inducted into the Cheyenne Frontier Days Hall of Fame! The rodeo’s CEO, Tom Hirsing, joined us to share why Patrick is so deserving of this honor.
How one firm’s numbers compare to USDA data as farmers prepare for a massive corn and soybean harvest, and the significant issue brewing for beans if the U.S.'s longstanding bulk export to China falls through as they switch to offense on President Trump’s tariffs.
This Week in Louisiana Agriculture shows us why breaking even is going to be a challenge for corn producers across the state.