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
University of Arkansas’ Allen Szalanski discusses a news study on rice stink bugs, what it could mean for farmers, and pest management strategies for the future.
Nutrition policy shifts may influence retail demand across agriculture.
Weak crop margins and tariff uncertainty are delaying machinery purchases and signaling slower capital investment across U.S. agriculture.
Farm Bureau Economist Dr. Faith Parum explains the role farm safety net programs play in supporting farm finances as growers head into the 2026 planting season.
Watch AARP Live tonight at 7:30 PM ET on RFD-TV to learn more about ways to reduce expenses and make smart financial choices.
Corn demand is rising thanks to ethanol expansion, yet year-round E15 remains missing from the Farm Bill—leaving farmers questioning the policy gap.

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:

The debate now matters as much as the policy — market rules and regulatory clarity depend on whether Congress can finish the bill this year.
Domestic beef demand remains solid, with the strongest growth occurring through retail channels, according to consumers surveyed in the latest K-State Meat Demand Monitor.
Stronger fuel demand supports corn usage despite a steady production pace.
Fertilizer still consumes an unusually large share of crop value.
Pollination costs remain volatile, raising planning risk for specialty crop producers.
The USDA Agricultural Outlook Forum highlights modest price support from tighter supplies across cotton, grains, dairy, livestock, and sugar into 2026.