WASHINGTON (RFD-TV) — Changes are coming to the way H-2A workers are paid, and the U.S. Dept of Labor says it could save farmers and ranchers more than $2 billion each year on ag labor costs.
In a final rule published in the Federal Register, the Department states that it will no longer base wage rates on the Farm Labor Survey. That is a report the U.S. Department of Agriculture (USDA) previously said would be phased out.
Instead, they will rely on the Occupational Employment and Wage Statistics survey from the Bureau of Labor Statistics. They claim this will save farmers and ranchers around $2.5 billion each year. The National Council of Ag Employers praised the move, saying it would bring farm wages back to reality.
Visas for the H-2A program have proliferated in recent years. In 2012, only 90,000 were issued. Last year, that number approached 400,000. The International Fresh Produce Association is also on board, stating it is pleased that the Department of Labor has taken into account issues it has been warning about for years.
That rule has been entered into the Federal Register and is taking effect today.
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.
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