Rising H-2A Wage Rates Pressure Farm Labor Costs

Farmers should anticipate continued upward pressure on farm labor costs and monitor policy changes that may further impact hiring decisions.

NASHVILLE, Tenn. (RFD-TV) — University of Georgia agricultural economist Cesar L. Escalante says rising Adverse Effect Wage Rates (AEWRs) are driving affordability concerns in the H-2A guest farmworker program.

AEWRs are set annually using the USDA’s Farm Labor Survey and are meant to ensure foreign workers earn fair pay without depressing domestic wages. The 2025 national AEWR is $17.74 per hour, nearly 18 percent higher than 2022 levels and above the long-term average growth rate of 3.5 percent.

Beyond hourly wages, H-2A employers must cover housing, transportation, meals, and insurance, which Escalante notes adds about a 5 percent premium to labor costs. Critics argue the AEWR system often produces abrupt wage spikes and does not fully reflect local labor conditions. Even so, Escalante’s analysis suggests H-2A labor remains cost-competitive compared with domestic hiring, especially when fringe benefit offsets are included.

Separately, although distinct from the H-2A program, the Trump administration is proposing a $100,000 fee per H-1B visa. Escalante warns that rising costs and new visa fees highlight how changes in immigration policy could reshape the labor supply for American farms.

Related Stories
Higher input costs and tighter cash flow are keeping pressure on farm income, credit needs, and capital spending.
Grain movement remains active, but high ocean freight and diesel costs continue to pressure export logistics.
University of Wisconsin-Madison’s John Shutske says simple safety habits can help prevent some of agriculture’s most common injuries.
Founder Jon Mollhagen says automation continues playing a larger role in reducing labor demands and animal stress.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Several counties are reviewing disaster declarations. Crop insurance may help growers cover some costs.
According to OPIS, the city is preparing for a projected Level 1 Water Emergency tied to a prolonged five-year drought.
Mexico’s demand for U.S. corn, soybeans, and wheat remained mostly steady during the first quarter, despite higher transportation costs.
The temporary closures come as grain traffic on the Arkansas River continues running ahead of recent years.
Shrinking Select beef supplies are continuing to reshape cattle pricing and beef demand trends.
Applications are open through July 27, 2026, on Grants.gov.