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
Economists are also closely watching how policy decisions in Washington could influence markets moving forward. Analysts say deferred futures for corn, soybeans, and wheat suggest markets are operating near break-even levels, not at prices that would encourage expanded production.
February 02, 2026 12:13 PM
·
Winter Weather And Markets Reshape Agriculture Nationwide This Week
February 02, 2026 12:04 PM
·
The biggest development of 2025 in agricultural law and taxation was the signing into law on July 4 of the Trump Administration’s landmark legislation, the “One Big Beautiful Bill” Act (OBBBA)
February 02, 2026 11:40 AM
·
House Agriculture Committee Chairman “GT” Thompson is pushing a “Farm Bill 2.0.”
February 02, 2026 10:56 AM
·
Falling livestock prices, combined with higher input costs, continue to squeeze farm profitability heading into 2026.
February 02, 2026 10:22 AM
·
Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.
January 30, 2026 03:42 PM
·
