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
Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.
Nearly everyone in the South Texas ag community appears extremely worried about the potential of a New World screwworm epidemic, according to a local veterinarian. RFD NEWS Correspondent Frank McCaffrey reports.
Jack Hubbard, with the Center for the Environment and Welfare, shares context and perspective on the controversial letter about Prop 12 circulating in Washington and how a review shows it misled the public.
From tariff talks in Europe to SCOTUS uncertainty and rising farm losses, analysts say policy and global supply will shape grain markets in the year ahead.
Large Brazilian crops heighten downside price risk if the weather allows production to reach projected levels.
Ethanol and corn groups are not hiding their disappointment over new reports that the bill to allow year-round E15 sales failed as Congress forges ahead on government funding, with another shutdown looming.

LATEST STORIES BY THIS AUTHOR:

National Land Realty’s Jeramy Stephens shares his outlook on farmland market trends, which remain under close watch as new federal assistance programs roll out — with experts analyzing potential impacts on land values, buying, and stability.
Michelle Perez shares more about the American Farmland Trust’s resource to help farmers and producers plan soil health improvements.
Farm CPA Paul Neiffer outlines the key difference between previous ECAP payments and the Farm Bridge Assistance Program.
Jeff Johnston with CoBank’s Knowledge Exchange explains the growing role of Rural America in supporting the nation’s digital infrastructure.
FFA Central Region Vice President Claire Woeppel joins FFA Today to share her story and excitement to connect with FFA members nationwide.