In late August, a federal court in Louisiana vacated the U.S. Department of Labor's (DOL) 2023 Adverse Effect Wage Rate (AEWR) Methodology rule. Grower advocacy groups welcomed the ruling, saying it could help stabilize the highly volatile AEWR.
The rule, published on February 28, 2023, is based on H-2A program AEWRs on the Occupational Employment and Wage Statistics (OEWS) survey and the Farm Labor Survey (FLS). It applied permanent non-agricultural wage data to seasonal agricultural jobs and required growers to adjust wages every six months.
"At a time when our growers are facing unprecedented challenges, we appreciate Secretary of Labor Chavez-DeRemer's recognition of the threat that the AEWR Methodology rule brought to the long-term sustainability of agriculture in Florida and across the nation," said Matt Joyner, executive vice president and chief executive officer of Florida Citrus Mutual. "We look forward to working with the administration to continue bringing much-needed reforms to the H-2A program to ensure a legal and reliable workforce for growing and harvesting Florida's signature citrus crop."
Although the court in Louisiana vacated the OEWS-based AEWR, the FLS-based AEWR remains in place, and the broader question of adverse effect is still unresolved. Without additional action, citrus and specialty crop growers remain subject to the volatile FLS-based AEWR, which rose nearly 10% in Florida over the past year and 15% two years earlier.
With a shortage of domestic labor, many growers have turned to the H-2A program. However, the program's regulatory requirements and costs are limiting its use, forcing farms to make operational adjustments and raising concerns about the future of U.S. agricultural production.
Source: Citrus Industry
