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
The U.S. Department of Labor (DOL) estimates that the move will save farmers and ranchers $2.5 billion each year. The group warns that new methods for calculating the adverse-effect wage rate would result in lower pay for foreign workers.
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