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
Support policies that keep U.S. biofuels at the table—marine demand could materially lift corn grind, crush margins, and rural jobs.
Industry leaders say $11 billion in new investments could turn the tide as dairy producers face shrinking margins and growing uncertainty.
Export Inspections In Bushels Show Mixed Momentum Patterns
Expect firmer shop prices, leaner inventories, and selective hiring in ag-adjacent businesses — plan parts, service, and financing needs earlier.
U.S. Farmers Face Shifting Harvest Pace, Basis, and Input Costs
Lewis Williamson with HTS Commodities joined RFD-TV’s Market Day Report to share insight into what’s happening on the ground and in the markets.
Even in this strong market, some beef producers are leaving money on the table by not following proven marketing practices.
New U.S. fees on Chinese-owned and built ships took effect overnight, marking the latest escalation in maritime trade tensions between Washington and Beijing.
Treat storage as risk management and logistics, and budget to break even since export growth is unlikely to absorb bigger U.S. corn and soybean crops.

LATEST STORIES BY THIS AUTHOR:

Olivia Bury, AgriSafe Network Behavioral Health Coordinator, shares about AgriSafe Network’s resources created to support farmers and rural Americans.
Jael Cruikshank, the newly elected Western Region Vice President, shares her story on this week’s FFA Today.
Shaun Haney, host of RealAg Radio, provides the latest insight into the timing, expectations, and broader considerations of the potential aid package, despite increasing exports to China.
Farm legal expert Roger McEowen reviews the history of the Waters of the United States (WOTUS) rule and outlines how shifting definitions across multiple administrations have created regulatory confusion for landowners.
Leslee Oden, president of the National Turkey Federation, and Jay Jandrain, CEO of Butterball, joined us in the studio on Monday to discuss the history, significance, and expectations surrounding this year’s presidential turkey pardon.
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.