By Clint Thompson
Farmers spend a substantial amount of money every year to operate a labor force for their crops. It’s the defining issue that John Walt Boatright, deals with as director of government affairs at American Farm Bureau.
“No matter where we go and no matter who we talk to in farm country, labor continues to be the focal point,” Boatright said.
It’s a point of contention because of its high costs and high usage rate. Boatright pointed out during the Florida Agricultural Policy Outlook Conference on May 8 that the industry spent $41.8 billion on hired labor in agriculture in 2020. About 34% of the $41.8 billion was in nursery and greenhouse production; 30% in fruit and tree nut; and about 22% in vegetable and melon.
By the Numbers
Florida employs the most H-2A workers in the country with 47,396 certified positions in 2024, at an adverse effect wage rate (AEWR) of $16.23. It represents a 9.9% increase from the previous year. Georgia was second in certified positions with 43,436, while Alabama increased to 2,153 positions. Georgia and Alabama’s AEWR was recorded at $16.08, an increase of 9.5%.
“Despite some fluctuation and reduction in some key states, Florida remains the No. 1 H-2A state in the country. California, Washington State, North Carolina and Georgia round out the top 5. The common denominator among all of those; huge specialty crop states that require intensive hand labor to plant, maintain and harvest their crops,” Boatright said.
Not only do growers have to compensate H-2A workers for their work, they also have to comply with other administrative costs. Boatright noted that one-time filing fees can range from $760 to $1,690 per worker. There is a $205 consulate fee and a minimum of $400 to transport the worker to the U.S. Housing costs can also range from $9,000 to $13,000 per worker.
“If we do not get a handle on this adverse effect wage rate in terms of reforms and changes to the methodology or finding an alternative, we’re going to continue to see farms and ranches close the doors. The percentage that’s left for them at the end of their bottom line is shrinking,” Boatright said.