A specialty crop grower reports the first decline in H-2A guest worker wages on his operation in more than a decade. The Adverse Effect Wage Rate for H-2A workers in Michigan, Wisconsin, and Minnesota now stands at $18.15 per hour, reflecting a 35-cent decrease from last year's peak. Despite this decline, USDA's Farm Labor Report indicates ongoing wage increases overall, suggesting future adjustments in adverse effect wage rates. The report highlights an average gross wage of $19.52 for hired workers in April, representing a three per cent increase from the previous year, with the workforce growing by the same percentage.
Fourth-generation farmer Derek Oomen discusses the financial challenges posed by steady wage increases. "It's just really, really hard when you're in a system like that and you're competing with other countries like Mexico and Peru, where they're paying in a day what you're paying in an hour," he explains. Mexico and Peru remain competitive, shipping products to the U.S. at lower labor costs.
The U.S. Department of Labor notes a rise in H-2A applications, up nearly 10 per cent in the first half of 2025. Last year, approximately 400,000 guest workers received certification. This data reflects ongoing reliance on H-2A labor for agricultural operations, impacting competitive dynamics in markets such as Canada, where growers face similar labor cost pressures.
Source: Brownfield
