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
Cotton growers can use the survey to compare nutrient, herbicide, and pest-management practices against national production benchmarks.
Drought and Planting Shape Weekly State Agriculture Recap
Brad Anderson with AARP joined us to preview AARP Live and discuss the importance of disaster preparedness and family planning.
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.

LATEST STORIES BY THIS AUTHOR:

Dr. Ernie Goss joined us to break down the latest Rural Main Street Index, discuss pressures on farm finances and equipment sales, and share expectations for the ag economy ahead.
Just like cows, kids experience ups and downs—from small frustrations to unexpected moments—but there is still good in every day.
Dr. Jeffrey Gold joins us on Rural Health Matters to discuss rural mental health awareness, the importance of reducing stigma in agriculture, and resources available to farmers, ranchers, and rural families seeking support.
Utah Senator John Curtis joins us for “Champions of Rural America” to discuss new legislation to improve forest management and wildfire prevention and its broader implications for rural communities and infrastructure.
NRECA CEO Jim Matheson joins us to discuss rural electric co-ops’ push for expanded USDA loan programs, rising energy demand from data center expansion, wildfire mitigation and other policy priorities impacting rural power infrastructure.
With the Farm Bill now in the Senate’s hands, industry groups say the stakes are high—and timely action could be critical for producers navigating a difficult economic environment.