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
Dry conditions may tighten hay supplies before summer growth. John Mays of Central Life Sciences joined us to discuss the risks of extended grain storage, how quality can be affected over time, and what growers can do to protect their grain while waiting for market opportunities.
High fertilizer costs and global risks threaten spring margins for growers.
From projected drops in input costs to biofuel expansion and the USDA’s new “One Farmer, One File” initiative, Ag Secretary Brooke Rollins shared key policy priorities at Commodity Classic that put farm issues back in the spotlight.
Liquidity management and cost control will matter most in 2026.
At Commodity Classic in San Antonio, growers explore new herbicide options, John Deere’s latest 8 Series tractors, and cutting-edge ag technology shaping the 2026 planting season. Here are some of RFD NEWS’ highlights from the event so far.
Higher energy costs ripple through local farm supply chains.

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:

Export growth remains key for grain profitability.
Spring Weather Creates Uneven Early Season Field Conditions
USDA Cattle-on-Feed report for March shows slightly lower inventory and higher February placements, signaling a tighter supply but steady outlook for the U.S. cattle herd.
Energy risks could reshape global ag trade flows.
The ag trade deficit is narrowing, but export competition remains strong.
E15 policy could shape future corn demand outlook.