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Farm and agribusiness groups call for permanent labor-rate reform

As Congress works to end the budget standoff that has shuttered the federal government, farmers are calling for that same sense of urgency and permanence in fixing another crisis: the broken system governing agricultural labor and wage rates.

The recent Department of Labor (DOL) interim final rule on the Adverse Effect Wage Rate (AEWR) marks the first meaningful step in years toward stabilizing labor costs for farm employers. The new rule replaces decades-old calculations with state-level Bureau of Labor Statistics (BLS) data and recognizes both skill levels and the cost of employer-provided housing. The result: a fairer, market-based system that supports a more equitable food system with more jobs, more land in production and more affordable food.

"This proves that federal government agencies and Cabinet can provide solution driven results for constituents, but Congress must also act to make things more permanent so farms and ranches can plan and future proof their organizations as the business and trade continues to shift," said Michelle Grainger, executive director of the North Carolina Sweetpotato Commission, speaking on behalf of the 34 agricultural organizations. "We applaud the current work to get this far, but we can't run farms or feed families on short-term fixes that change with every administration."

For the past three years, growers have faced labor-cost spikes exceeding 30 percent in some regions, forcing cutbacks in planting, offshoring of production, and higher consumer prices. The new rule replaces the defunct United States Department of Agriculture (USDA) Farm Labor Survey with the BLS Occupational Employment and Wage Statistics (OEWS) system, setting two skill-based wage levels and applying an "adverse-compensation adjustment" for housing and other mandatory employer costs.

"This decision acknowledges the economic realities we've warned about, and the Coalition thanks the Trump administration for these first steps toward change," added Chris Butts, executive director of the Georgia Fruit and Vegetable Growers Association. "Though, just as Congress can't govern by continuing resolution, farmers can't plan by interim rule. We need predictability, not politics, to guide labor policy."

© Heather Craig | Dreamstime

The coalition draws a direct parallel between the current consequences of a government shutdown and the uncertainty created by temporary labor regulations.

The coalition urges Congress to codify a long-term, market-based AEWR framework that provides certainty for growers while continuing to protect U.S. workers.

"We applaud the leadership at USDA and DOL for responding to years of advocacy," said Jamie Clover-Adams, executive director of the Michigan Asparagus Association. "Though relief shouldn't depend on who's in office. It should depend on sound economics and the goal of keeping America's farms productive and competitive."

For more information:
Chris Butts
Georgia Fruit and Vegetable Growers Association
[email protected]
https://www.gfvga.org/

Michelle Grainger
North Carolina Sweetpotato Commission
Tel: +1 (919) 894-1067
www.ncsweetpotatoes.com

Jamie Clover Adams
Michigan Asparagus Advisory Board
Tel: +1 (517) 669-4250
[email protected]
www.michiganasparagus.org

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