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
Strong exports support ethanol margins and corn demand.
Kansas State University agricultural economist Dr. Gregg Ibendahl discusses rising diesel prices, the influence of global oil markets, and the potential impact on farmers heading into the spring planting season.
Rising protein demand supports long-term trade in feed and meat.
China’s stricter inspection rules prompt Cargill to pause soybean exports from Brazil, briefly lifting U.S. soybean prices as traders anticipate potential shifts in global trade, as export demand remains supportive across all major U.S. commodities.
Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.
Severe drought in South Texas is forcing ranchers to consider cattle sell-offs as feed and water supplies dwindle, threatening herd health and livestock operations.

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:

SDRP Stage 2 now helps producers recover shallow, uninsured losses from major 2023–2024 disasters, with streamlined sign-ups open through April 30.
Tyson’s capacity cuts weaken local basis, tighten kill space, and heighten dependence on imports, signaling more volatility for producers.
Low farmer shares reflect deep consolidation across the food chain, keeping producer returns thin even as retail food prices remain high.
Strong yields and higher cattle prices helped stabilize conditions, but weak crop prices and rising carryover debt remain major challenges for Eleventh District farmers.
Corn exports remain strong, while soybeans and wheat shift week to week on river conditions and global demand.
A regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture, prepared by RFD-TV Markets Specialist Tony St. James, for the week of Monday, November 24, 2025.