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
“It, all of a sudden, says that tracking and fighting hunger is not a priority, apparently, at the federal level.”
Colin Reilly with Connected Nation joined RFD-TV News to explain how the tool works and why it’s an important step in bridging the digital divide.
In a final rule published in the Federal Register, the Department states that it will no longer base wage rates on the Farm Labor Survey.
“In the first six months of 2025, 181 Chapter 12 bankruptcies were filed nationwide.”
Farmers are in the midst of harvest as the government descends into a shutdown and the Farm Bill expires. Key federal departments, crop reporting, and aid programs important to the agricultural sector are now on hold.

LATEST STORIES BY THIS AUTHOR:

Farmers who rely on H-2A workers will see a few key changes to speed up the process and make it fairer. On the ground, producers say labor issues create shortfalls in otherwise productive harvests.
John Appel with the Farmers Business Network (FBN) joins us for a closer look at the 2026 Crop Protection Market Outlook Report.
Industry leaders representing more than 40 nations gathered to discuss the future of ethanol and other corn-based products.
Farmers display a unique optimism — planting with the expectation that weather, basis, and prices will improve by harvest — asserting that the profession is an identity, not just a job.
A fast-moving series of trade signals from the White House and key partners is resetting the near-term outlook for U.S. agriculture.