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
Officials say the FDA-approved generic drug kills most screwworm larvae within hours of administration. The medication is available in two dosage strengths and is administered based on an animal’s weight.
Secretary Brooke Rollins announced the distribution of a comprehensive memorandum on Friday in Fort Worth, at RFD-TV’s Rural Town Hall presented by the Western Caucus Foundation.
The special presentation by RFD-TV and the Western Caucus Foundation will feature keynote remarks by U.S. Secretary of Agriculture Brooke Rollins.
Panama matters to agriculture as both a freight corridor and a potential future market for U.S. ethanol.
Ethanol and feed coproduct exports remain strong outlets for corn demand, even after April’s pullback.
AFBF Economist Bernt Nelson discusses biosecurity to prevent New World Screwworm and financial tools to support livestock as eradication efforts continue.

LATEST STORIES BY THIS AUTHOR:

StoneX Director of Fertilizer, Josh Linville, joins us to discuss fertilizer market trends and risk management strategies to navigate an uncertain farm economy and fluctuating agricultural input costs.
On a year-over-year basis, final demand prices are up 6.5 percent, the largest annual increase since late 2022.
United Soybean Board Director and Missouri farmer Kyle Durham joins us to discuss farmer sentiment, alternative revenue programs, conservation incentives, domestic demand trends, and conditions on his farm this spring.
Secretary Rollins says the first U.S. calf infected with screwworm responded to treatment and is back to full health.