H-2A GUEST WORKER WAGE METHODOLOGY PUSHING FARMS OUT

The American Farm Bureau Federation says Congress needs to address unpredictable and volatile wages for H-2A guest workers.

Director of Government Affairs John Walt Boatright tells Brownfield the impact of the Adverse Effect Wage Rate increases is being felt by farmers across the country.

“It’s something that has widespread impacts across H-2A program, and we’re hearing it from states that we normally wouldn’t hear from in the labor space,” he shares. “So this is telling us that this is quite an onerous rule that needs to be rolled back.”

Wages for the program have increased nearly six percent every year on average since 2019.

“Farmers are hurting and we’re getting stories on a daily basis of producers around the country who are either choosing to shift their production to lesser labor-intensive commodities or they’re choosing to get out of production altogether,” he shares.

Farm Bureau estimates nearly half of states will pay between $17 and $19 in 2024 for H-2A wages, but the true cost of the program when accounting for housing and transportation is closer to $30 per hour.

Boatright says legislation in Congress could put an immediate freeze on increases, but a long-term solution is needed.

Brownfield interviewed Boatright during this week’s Indiana Farm Bureau State Convention.