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
U.S. Senator Joni Ernst (R-IA) joined us on Wednesday’s Market Day Report to share why Ames is uniquely positioned to support expanded USDA operations.
Iowa land values dropped 3% year-over-year. Sen. Chuck Grassley said this discomforting pattern is a harbinger of crisis for farmers, as seen in the 1980s.
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.
Crop insurance remains a vital tool for managing climate-driven risk.
RFD-TV Farm Legal and Tax Expert Roger McEowen with the Washburn School of Law dives into a “potpourri” of ag tax and law-related issues in his latest Firm to Farm blog post.

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:

Brazil’s ethanol growth could shift the corn trade.
Fuel costs are shaping food and demand patterns.
Strong demand persists despite short-term price pressure.
High prices alone may not drive herd expansion.
Cotton may gain demand as polyester costs rise.
Trust with lenders strengthens farm financial decision-making.