UNITED STATES - The International Fresh Produce Association recently sent out a call to action for the industry: Tell your Member of Congress to co-sponsor the Supporting Farm Operations Act (HR 7046) to pause the Adverse Effect Wage Rate (AEWR).
As we recently reported from the American Farm Bureau Federation, of utmost importance to users of the H-2A visa program, the field and livestock workers’ combined wage rate for 2023 contained in the FLR (USDA’s Farm Labor Report) becomes the Adverse Effect Wage Rate utilized in the H-2A program in 2024.
“Given the ongoing overall tightness in the U.S. labor market, few would be surprised that the fiscal year 2023 U.S. average field and livestock workers’ combined wage rate rose, but the 5.6 percent fiscal year-over-fiscal year increase outpaced the 4.3 percent end-of-fiscal year-over-end-of-fiscal year growth in seasonally adjusted average hourly earnings of all private employees and will continue to put significant pressure on the bottom lines of farmers with significant labor needs,” Veronica Nigh, American Farm Bureau Economist, wrote.
Among those AndNowUKnow reached out to, Chafeka Abdellatif, Chief People Officer for Superfresh Growers®, supported IFPA’s call for the same reasons.
"We advocate for the pausing of the Adverse Effect Wage Rate (AEWR) adjustment as the current 2024 rates, set at a 7 percent increase over 2023, are deemed unsustainable. The Washington State AEWR has surged from $17.97 to a minimum of $19.25, making it the second-highest in the U.S. after California. In actuality, if the housing benefit is factored in, then the real wage comes to $24 an hour. This sharp increase poses challenges in aligning with our operational and labor costs. It is vital to address these concerns, engaging with industry members to explore feasible solutions. Constructing a well-supported argument backed by data and proposing alternative adjustments can contribute to a more balanced and sustainable approach to the AEWR," she shared.
IFPA Chief Executive Officer Cathy Burns emphasized this in a statement released to the industry.
“Out-of-control labor costs are already dampening domestic fresh produce production, so we know that additional increases would have a devastating impact on the entire supply chain," Cathy said. "Congressman’s Moolenaar’s common-sense legislation freezes AEWR increases for two years, giving immediate relief and enough certainty for our industry to perform while Congress works on broader reforms that will bring stability to our labor force and long-term food security for our nation.”
Tracy Duda Chapman, Senior Vice President/Chief Legal and Administrative Officer for Duda Farm Fresh Foods parent A. Duda & Sons Inc. also advocated for the positive impacts of a pause.
“While it’s important that Congress continues to work on broader reforms related to labor stability and long-term food security for our nation; freezing the AEWR for two years will bring immediate relief and a degree of certainty to the industry,” she shared with ANUK.
Such wage hikes make supporting job growth difficult in an already challenging industry, stacking the deck against regions utilizing the H2-A program, which has proven invaluable in ag sectors from the Pacific Northwest throughout the southern United States.
While there is not yet a deadline, actions can influence bringing the Supporting Farm Operations Act to the floor by demanding representatives' interest.
To tell your Member of Congress to co-sponsor the bill, submit a letter of support made easy on the IFPA’s Advocacy Action page.
