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
Global pork production is expected to rise in the first half of 2026, despite trade volatility stemming from shifting import policies and swine disease pressures.
Even small declines in the calf crop translate into sustained supply pressure, supporting cattle prices over multiple years.
Clear right-to-repair guidance reduces downtime, repair costs, and operational risk.
Tennessee State Veterinarian Dr. Samantha Batey joined us with the latest on biosecurity efforts and the state’s new “Know Before You Show” initiative.
Texas Agriculture Commissioner Sid Miller discusses the state’s latest efforts to prevent the New World screwworm from reaching Texas.
Winter Weather And Markets Reshape Agriculture Nationwide This Week

LATEST STORIES BY THIS AUTHOR:

Lewis Williamson with HTS Commodities joined us to provide analysis on the January WASDE report and expectations for grain markets going forward.
Market reaction was bearish for corn and soybeans, with analysts noting that abundant supplies amid tepid demand could keep price pressure on agricultural commodities.
The Farm Bureau’s honor highlights the important role farm dogs play on operations across the country, serving as dependable workers and trusted companions.
Logistics capacity remains available, but winter volatility favors flexible delivery and marketing plans. NGFA President Mike Seyfert provides insight into grain transportation trends, trade policy, and priorities for the year ahead.
Rising adoption of GLP-1 drugs may gradually reshape food demand, with potential downstream effects on protein markets and consumer purchasing patterns.
Traders are keeping a close eye on China’s soybean purchases as markets track export sales, shipments, and progress toward the ‘magical’ 12 million ton target promised last year.