New H-2A Wage Rates Estimated to Recoup $2 Billion in Ag Labor Costs Annually

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.

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.

Related Stories
AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
Farm legal expert Roger McEowen discusses the EPA’s rescission of the 2009 endangerment finding on greenhouse gases and what it could mean for agriculture and rural America.
The USDA says the framework is about “ending abusive government overreach” and “protecting farmers, families, and private property.”
Farm numbers still favor small operations, but production, resilience, and risk management are increasingly concentrated among fewer, larger farms.

LATEST STORIES BY THIS AUTHOR:

The government reopens after 43 days. USDA resumes key reports, weighs farm aid, and watches China’s next move on U.S. soybean purchases.
Jeramy Stephens with National Land Realty shares tips for fall and winter to guide landowners and farmers.
RealAg Radio host Shaun Haney shares insights from a recent study, discusses EV market access in Canada, and highlights other market opportunities top of mind for Canadian producers.
USMEF President and CEO Dan Halstrom shares how recent trade talks are influencing U.S. red meat global sales and the importance of key trade agreements like the USMCA.
Iowa Ag Secretary Naig recaps discussions surrounding a potential federal aid package for farmers and shares insights on producer sentiment in the Heartland.
Dr. Jeffrey Gold, President of the University of Nebraska, joined RFD-TV to discuss coping strategies for those aching joints.