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
The USDA noted that peanut edible utilization season-to-date is down 3% on the year, despite overall stocks increasing.
“Those could’ve easily been our beans going over there. It goes to show that if that opportunity is there, China would be willing to buy.”
Missouri Director of Agriculture Chris Chinn joined us Monday to share highlights from Secretary Brooke Rollins’ visit and her perspective on USDA’s new initiatives.
North Dakota Farmers Union (NDFU) President Mark Watne joined us Monday to share his perspective on the America First Trade Promotion Program and potential implications for producers.
Duane Simpson, CEO of the National Council of Farmer Cooperatives (NCFC), joined us in Monday’s Market Day Report to share his perspective on the USDA’s plan and potential impact on producers.

LATEST STORIES BY THIS AUTHOR:

Lyndsey Smith with RealAg Radio discusses how global trade dynamics could shape the future of Canada’s pulse exports.
Brooks York with Agri-Sompo joined us to discuss this year’s harvest price calculations and what they could mean for producers nationwide.
Dr. Jeffrey Gold, President of the University of Nebraska, joined Rural Health Matters to discuss dental care access and improvement efforts across rural America.
“Farmers for Free Trade” warns that disaster is brewing as President Trump’s trade policy is causing farm input costs to rise even more.