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.

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:

Record corn and sorghum crops boost feed grain supplies, while reduced soybean and cotton production tighten outlooks for oilseeds and fiber markets.
Lewis Williamson with HTS Commodities joined us to provide analysis on the January WASDE report and expectations for grain markets going forward.
Structural efficiency supports cattle prices and resilience — breaking it risks higher costs and greater volatility.
Strong pork demand and improving beef exports outside China support protein markets despite ongoing trade barriers.
Logistics capacity remains available, but winter volatility favors flexible delivery and marketing plans. NGFA President Mike Seyfert provides insight into grain transportation trends, trade policy, and priorities for the year ahead.
Rising adoption of GLP-1 drugs may gradually reshape food demand, with potential downstream effects on protein markets and consumer purchasing patterns.