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
More Farms File for Bankruptcy As Strong Farm Loan Demand Boosts Bank Earnings
JBS representatives told Reuters that the original deal has not changed and that they welcome employees back to the facility.
Charly Cummings with Superior Livestock Auctions provides a real-time look at cattle market activity, demand trends, and what lies ahead for upcoming livestock auctions in Texas.
Researchers with the University of Tennessee Institute of Agriculture are studying the clouded plant bug, which causes millions of dollars in damage to crops such as corn, soybeans, and cotton growing across the state.
Leadership closer to western forests may speed decisions impacting timber, land use, and wildfire management.
More than 15 million birds were affected by bird flu, but fewer outbreaks are helping bring egg prices down

LATEST STORIES BY THIS AUTHOR:

This year at CattleCon 2026, RFD Network’s Kirbe Schnoor caught up with Donna Emick from Pneu-Dart to get her perspective on why education, safety, and accountability matter in the field.
Nebraska’s largest wildfire on-record has burned 650,000 acres, with three other major fires also burning across the state, destroying pastureland and threatening cattle.
NMPF’s Alan Bjerga discusses pending trade agreements with Indonesia and Ecuador and how they will benefit U.S. dairy producers and improve overall global competitiveness of U.S. ag products.
Farm Legal expert Roger McEowen discusses new dicamba regulations, compliance requirements for growers, and the evolving outlook for herbicide use.
Nebraska Farm Bureau President Mark McHargue shares the latest on the wildfires, their impact on agriculture, and the challenges farmers are facing as they navigate both natural disasters and economic uncertainty.