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
Dairy markets are improving, but large supplies still cap the upside.
Investment and access to capital remain critical for agriculture.
Transporting pollinator colonies—primarily honey bee hives—is a major logistical operation in U.S. agriculture. Costs can vary widely depending on distance, fuel prices, labor, and timing.
Jake Charleston from Specialty Risk Insurance Agency recapped an Oklahoma auctioneer contest and recent industry events, showing how stakeholder feedback helps insurers gauge market conditions and risk management needs.
Pat Hord with the National Pork Producers Council joined us to recap producer meetings in Washington and discuss key policy priorities including Prop 12 and agricultural labor.
Cattle-on-Feed is down on the year in the USDA’s April report, with lower placements and marketings signaling tighter feedlot activity.

LATEST STORIES BY THIS AUTHOR:

A late-season freeze in northeast Louisiana has forced farmers to replant thousands of corn acres, adding costs, straining seed supplies, and raising concerns about shifting to soybeans.
March 15 of each year is the application deadline for the Pima Cotton Trust, and March 1 of each year is the application deadline for the Wool Trust. The law mandates trust payments by April 15. More information about these programs is available at www.fas.usda.gov/programs.
Tractor Supply’s Paper Clover Campaign raises millions of dollars each year for 4-H youth programs and scholarships. Local store community marketing manager Lexie Gamble joined Tuesday’s Market Day Report alongside 4-H student Matthew Rochford to discuss the partnership.
The cast of “Farmer Wants a Wife” joined us to share their stories and preview Season 4 of the series, which premieres April 21 on FOX.
Lane Howard and Adam Andrews with the National Corn Growers Association joined us in the studio discuss EPA’s approval of summer E15 sales, ongoing fuel market concerns, and the industry’s push for a long-term biofuels solution for farmers.
Alan Bjerga with the National Milk Producers Federation discusses how stewardship is driving efficiency, profitability, and competitiveness in the dairy industry.