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
Purdue University Professor of Agricultural Economics Dr. Jim Mintert shares a closer look at farmer sentiment and the key issues shaping the agricultural economy in January.
Shrinking slaughter capacity may delay heifer retention, complicating herd rebuilding plans.
Clearer 45Z rules favor U.S. oilseeds, but final RFS volumes remain critical to locking in demand.
Even small declines in the calf crop translate into sustained supply pressure, supporting cattle prices over multiple years.
Clear right-to-repair guidance reduces downtime, repair costs, and operational risk.
Texas Agriculture Commissioner Sid Miller discusses the state’s latest efforts to prevent the New World screwworm from reaching Texas.

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:

High ownership does not always translate into high output, underscoring the importance of structural differences in understanding state-level farm performance.
Record yields are cushioning production declines, but softer prices underscore the importance of cost control and market timing for vegetable growers.
Cuba remains a small but dependable, cash-only outlet for U.S. grain and food products.
Expanding cheese exports are strengthening U.S. milk demand and reinforcing global competitiveness.
Strong global demand and falling stocks suggest continued price volatility for U.S. coffee buyers despite record world production.
U.S. dairy producers remain the primary growth engine globally, while tightening supplies in Europe and New Zealand could support export demand for American dairy products.