By Clint Thompson
Looming Congressional Review Act resolutions could reverse recent changes to the Adverse Effect Wage Rate (AEWR). But it will require specialty crop producers and industry leaders speaking out against substantial pay increases that could force some farmers to close up shop.
GT Thompson, chairman of the House Committee on Agriculture, shared that belief during Monday’s Farm Bill listening session in Newberry, Florida.
“I think it’s going to take the voice of American agriculture speaking out and letting this administration know. We’re going to need the support of the president on this, that the measure of what the Department of Labor did represents a tremendous threat to food security,” Thompson said. “It’s not just what is the payment per hour but these farmers and ranchers under H-2A are responsible for pay travel to and from the countries of origin. They’re expected to pay for housing and for the food needs. You take all of what a farmer pays per hour costs, it would be well above the average hourly pay for domestic American workers.”
Multiple farmers expressed concerns during Monday’s session that continued spikes in AEWR would price them out of business. Sam Watson, Colquitt County farmer who also serves as president of the Georgia Fruit and Vegetable Growers Association (GFVGA), spoke about the AEWR increases.
“We’ve had these new additions with the AEWR increase and our wage increases. That’s just going to make it harder for our growers to stay in business,” Watson said.
The AEWR for Georgia’s specialty crop producers increased from $11.99 per hour in 2022 to $13.68 per hour in 2023, representing a 14% increase that is not sustainable, believes GFVGA. It is urging members of the Georgia Congressional Delegation to support resolutions to reverse changes announced by the Department of Labor. Thompson heard similar pleas loud and clear Monday afternoon.
“At some point, the Biden administration and what they’re doing at the Department of Labor, they will find that one of two things will happen; farmers will find they can’t afford to produce any more based on what they get paid, or before that, they’re going to raise the cost of food to the point where it won’t be affordable, and that’s going to affect every American family,” Thompson said.
The CRA resolutions will be introduced by Senators Tim Scott (R-SC) and Ted Budd (R-NC) in the Senate and Representative Ralph Norman (R-SC) and House Agriculture Committee Chairman G.T. Thompson (R-PA) in the House.