The USDA’s Farm Labor Report, released on November 20, offers a glimpse into the future of farm expenses. The Department of Labor uses the “field and livestock workers’ combined” wage rate reported in the November Farm Labor Report to establish most H-2A workers’ minimum wage, known as the Adverse Effect Wage Rate. This year, the combined field and livestock worker wage rate nationally is $18.12, up 3.2 percent from the previous release. Regional wages increased an average of 4.5 percent, but this reflects wide ranges of change across the country.
Fruit and vegetable farmers, the largest users of H-2A, spend 38 percent of their farm expenses on labor, and that share will continue to grow if wages grow as they have in recent years. Rising farmworker wages are a challenge to American specialty crop producers competing with farmers in other countries who can hire at a fraction of the cost.
- NAFB