New Adverse Wage Rules Partially Fix Labor Issues

New wage rules improve accuracy but may still raise labor costs.

NASHVILLE, TENN. (RFD NEWS) — New federal wage rules for H-2A visa farmworkers are addressing some long-standing problems but still leave key issues unresolved.

University of Georgia agricultural economists say the updated Adverse Effect Wage Rate (AEWR) system improves wage calculations but may still distort farm labor costs.

The U.S. Department of Labor shifted to a new system in 2025 that uses Occupational Employment and Wage Statistics data instead of the Farm Labor Survey. This change moves wage calculations to the state level and introduces two pay tiers based on skill level, replacing broader regional averages under the old system.

The new approach helps correct geographic aggregation issues. However, wage data still relies heavily on unemployment insurance records, which often exclude farms and instead reflect farm labor contractors and support businesses.

Job-level differences also remain a concern. Wages for crop workers, livestock labor, and equipment operators are averaged together, even though they typically earn different pay rates. That can push wages above typical crop worker levels, which make up most H-2A jobs.

Farm-Level Takeaway: New wage rules improve accuracy but may still raise labor costs.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
FD-TV’s own Tammi Arender caught up with Gregg Doud, President and CEO of the National Milk Producers Federation.
With the U.S.–Vietnam agreement nearing signature, U.S. cotton, corn, and soybean exporters could lock in new demand lanes just as global supply shifts.
The government reopens after 43 days. USDA resumes key reports, weighs farm aid, and watches China’s next move on U.S. soybean purchases.
Jeramy Stephens with National Land Realty shares tips for fall and winter to guide landowners and farmers.
Iowa Ag Secretary Naig recaps discussions surrounding a potential federal aid package for farmers and shares insights on producer sentiment in the Heartland.
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Cheaper freight is helping exports move, especially corn, but weaker soybean demand looms large.
Disease risks remain a key factor to watch heading into fall.
For rural communities, this shift could mean new housing options for farmworkers and young families priced out of metro markets.
The modest cut should slightly reduce borrowing costs on operating loans, land notes, and equipment financing for agriculture, giving some relief to producers under heavy debt loads.
Sen. Roger Marshall, a founding member and chairman of the Make America Healthy Again caucus, joined us with his thoughts on the commission’s latest report and the key ag-related issues.
Produce markets are in transition as fall approaches, with leafy greens and berries under pressure, while vegetables like celery, broccoli, and cauliflower are finding firmer ground.