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
Diesel has eased for now, but the larger 2026 energy outlook still points to elevated fuel costs.
Rotational grazing can improve pasture use and soil health while helping control feed and drought-related risk.
The Supreme Court’s ruling could affect pesticide warning claims well beyond Roundup. Richard Gupton with the Ag Retailers Association joins us to explain the importance of federal pesticide labeling standards and discuss the potential impact on the ag industry and supply chain.
Rural population growth supports long-term stability of the ag workforce.

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:

Genevieve Collins from Americans for Prosperity discusses rising Texas property taxes, potential relief, and impacts on farmers, ranchers, and rural communities.
RealAg Radio’s Shaun Haney joins us to discuss geopolitical trade tensions, energy market volatility, and what global shifts could mean for U.S. agriculture exports.
National Pork Producers Council President Rob Brenneman joins us to discuss Prop 12 provisions in the House’s Farm Bill as it heads to the Senate for debate.
This case could influence how much leverage grain shippers have when a preferred rail outlet is blocked or priced too high.
U.S. Cattlemen’s Association President Justin Tupper joins us to discuss the DOJ packer investigation, industry competition, and the outlook for cattle producers.
Farm Bureau economist Dr. Faith Parum says EPA’s final biofuel volumes keep corn demand steady and strengthen the outlook for soybean-based diesel feedstocks.