America’s farmers are celebrating some recent changes to US farm labor policy while struggling to fill the gaps left by others. There is relief over changes to how H-2A worker wages are calculated, which is estimated to save farmers more than $2 billion every year. At the same time, some farmers are forced to scale back dairy herds or watch crops rot in the field because the immigration crackdown has left them shorthanded.
On the positive side, a final rule by the US Bureau of Labor Statistics (BLS) changes the way base wage rates are calculated. The BLS claims it will save farmers and ranchers around $2.5 billion each year. The National Council of Ag Employers praised the move, saying it would bring farm wages back to reality.
One reason the government had used a higher wage scheme to begin with was to protect wages for US citizens. While well intentioned, the rule likely had no meaningful impact on wages for US workers as the higher rates still failed to draw Americans into the ag labor force.
In an October filing regarding changes to the H-2A visa program, the Labor Department noted that despite rising wages, there is no indication that unemployed or marginally attached US workers are entering the agricultural labor force in meaningful numbers. It also added, “Without swift action, agricultural employers will be unable to maintain operations, and the nation’s food supply will be at risk.”
The report went on to warn that Washington’s immigration crackdown could cause an uptick in food prices amid a decrease in labor and an increase in demand for fresh produce. “The near total cessation of the inflow of illegal aliens combined with the lack of an available legal workforce, results in significant disruptions to production costs and threatening the stability of domestic food production and prices for U.S. consumers,” the Labor Department wrote.
One thing not widely understood about the H-2A Visa program is that it is not available to all farmers. Operations that require year-round help, such as dairy farms and ranches, can’t utilize the H-2A program. For others, such as produce operations that need skilled workers, the costs associated with H-2A workers are just too high. This is compounded by the programs requirement that employers provide housing. Operations small and large also find it challenging to navigate the endless paperwork involved.
Zach Rutledge, an assistant professor in the department of agricultural, food and resource economics at Michigan State University, says he’s studied farm labor markets for about six or seven years. “The most recent rounds of surveys I’ve done indicate that about half of the farmers are experiencing some degree of labor shortage,” he told The Packer. “The average shortage is about 20% of the labor force, so we have about half of the farmers reporting that they can’t hire all the labor they need, and then … the average shortage is about 20%.”
A national coalition of famers recently launched an advocacy campaign, “Grow It Here,” to highlight the country’s growing agricultural labor shortages. Kristi Boswell, advisor to the “Grow It Here” campaign and a former USDA official, explains that while the H-2A program has grown exponentially out of sheer necessity, it is incredibly bureaucratic and expensive. “As is often said, you shouldn’t have to hire a lawyer to hire a farmworker,” says Boswell. “Also, as a seasonal program, the H-2A program is not available to fill year-round needs.”
“Grow It Here” represents a variety of commodities, from livestock and dairy to fruits and vegetables. It’s planning listening sessions across the country to push for a more reliable workforce. For more information on “Grow It Here,” visit their website HERE. (Sources: USDA, The Packer, Farm Bureau, The Hill, GrowItHere)
