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
The ranch’s stewardship practices are designed to support both cattle production and long-term sustainability.
RFD News Farm Legal Expert Roger McEowen discussed red flags landowners should watch for during property transactions.
Lewis Williamson with HTS Commodities joined us to discuss spring planting progress and the outlook for trade and demand as the season continues.
Sen. Jerry Moran of Kansas joins us to discuss the Food for Peace program’s Kansas roots, its place in the Farm Bill, and the importance of the USDA’s visit to the state.
While a ceasefire remains in place, overnight missile attacks are raising questions about its stability.
Washington growers say this year’s cherry crop may be smaller than last season but still strong enough to support promotions.

LATEST STORIES BY THIS AUTHOR:

Brad Anderson with AARP joined us to preview AARP Live and discuss the importance of disaster preparedness and family planning.
North Dakota FFA President Cole Anderson joins us to discuss the upcoming state convention, leadership lessons, and what FFA means to students across the state.
Fred Nichols with Huma joins us to discuss the 4 R’s of nutrient stewardship and how farmers are adapting best practices in today’s evolving ag economy.
USDA officials are increasing surveillance and sterile fly dispersal efforts as New World screwworm cases continue growing in Mexico near the Texas border.
Firefighters continue battling multiple wildfires across southwest Kansas as drought conditions fuel fire danger and raise concerns about additional cattle herd liquidation.
Dave Walton with the American Soybean Association joins us to discuss China’s new ag purchase commitments, E15 policy concerns, and spring planting conditions.