“If my contract isn’t approved for some nonsensical reason, I’ve just invested a significant amount of capital into housing that will be empty. I’ll go out of business, and 40 percent of the entire rose market will disappear overnight, along with a family that has survived for four generations farming in this state.”- Tyler Francis, 4th generation farmer, and CEO of Francis Roses, member, AmericanHort
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BUCKEYE, AZ – Today, the American Business Immigration Coalition Action (ABIC Action), the International Fresh Produce Association, the National Council of Farmer Cooperatives, El Mar de Cortez Corp, AmericanHort, Western Growers, Mormon Women for Ethical Government, United Dairymen of Arizona and Local First Arizona hosted a press event and roundtable entitled “Lower Food Prices, Keep Shelves Stocked: Common Sense Solutions to Arizona’s Farm Labor Shortage.”
This was the latest in the ongoing National Food Security Farm Tour organized by the American Business Immigration Coalition Action that has already hit Wisconsin, Pennsylvania, Maine, Kansas, Missouri, South Dakota, North Carolina, Ohio, Utah, North Carolina, Texas, Indiana, Idaho and D.C.
“The agriculture sector is facing a devastating labor shortage,” said ABIC Action Intermountain Director Enrique Sanchez. “This must be urgently addressed to keep grocery store shelves stocked and lower food prices for Arizonans, and Americans everywhere. A study by Texas A&M International University shows that ag labor reform is an important part of a strategy to combat inflation and rising grocery prices.
“However,” continued Sanchez, “it is not just about cost. These are national security issues as well. Food security is national security. A nation that cannot feed itself is not a secure nation. The U.S. Department of Agriculture predicts that next year the U.S. will be a net importer of agricultural goods, meaning that we will rely more heavily on growers outside the U.S. to put food on our tables. We don’t want to create trade imbalances and we don’t want to rely completely on other countries to grow our food.”
With Senate negotiations ongoing, the event called attention to the urgency of fixing Arizona’s and the nation’s farm labor shortage by passing new Senate agriculture workforce solutions.
“Since ‘99, this dairy has run twenty-four-seven around the clock, so labor is critical to dairies. We employ between the dairies and the farms around 125 people. It’s a struggle more now than ever. In the old days we used to have many applicants for labor, nowadays it’s a struggle from week to week whether we’re going to be able to milk the cows.” said Triple G Dairy owner United Dairymen of Arizona member Ben Gingg. “We need access to labor and we need it now.”
“Labor is a huge component of American agriculture, not easily replaced by technology or machinery,” said Charlie Montgomery, COO, of Rousseau Farming Company— a member of Western Growers. “Let’s not create any more risks or challenges to what we already face economically. I extend my sincere appreciation to Senators Bennet and Crapo for their efforts on agricultural labor reform and encourage our Arizona Senators Sinema and Kelly to continue the push to get the Farm Workforce Modernization Act across the finish line.”
Dr. Tina Huff, Chief People Officer, Duncan Family Farms; Member, International Fresh Produce Association said: “In 2021 Duncan Family Farms employed over 400 team members using the H2A program. As a farmer experiencing the H2A program firsthand, we encourage all reforms that ensure this program is sustainable. Joint work to pass agricultural workforce reform is a national security measure which will protect our domestic food supply and provide safety on our borders, by ensuring an equitable and legal labor force in agriculture. One of the greatest threats to producing affordable crops year-over-year is the unsustainable annual increase seen in the H2A minimum wage rate, the AWER rate.
She continued: “The reforms to the AEWR rate calculation proposed in the Farm Workforce Modernization Act, as well as the other reforms in the Act, will provide a sustainable H2A visa program. This action is needed now, this year, and we thank the Senate for your focus on getting these measures to the finish line.”
Tyler M. Francis, 4th generation farmer, and CEO of Francis Roses; Member, AmericanHort: “I grow a multi-year crop. When I sign my H2A labor contract they change the wage on me midseason and I don’t know what it’ll be until December 28. How can I budget for that? There is no consistency. One year it’s up 8 percent, another year it’s 14 percent. It makes us uncompetitive. But if my contract isn’t approved for some nonsensical reason, I’ve just invested a significant amount of capital into housing that will be empty. I’ll go out of business, and 40 percent of the entire rose market will disappear overnight, along with a family that has survived for four generations farming in this state. This is what keeps me up at night. And it’s not just me. It’s every nursery, not just in the state of Arizona but every nursery in the United States.
He continued, “As an H2A user I’m bracing for the expected rules mandating a 2023 wage increase. Senator Kelly and Senator Sinema, the time is now to go back to Washington, roll up your sleeves not just for Arizona farmers but for all Americans, and get this done.”
Additional Statements:
Christie Black, Arizona Chapter Coordinator, Mormon Women for Ethical Government: “As a mother of a 10-year-old daughter and a 7-year-old son, I know how challenging it can be to get my kids to eat food that is good for their growing bodies. My family enjoys Arizona-raised beef served with locally grown corn and melons, but the rising prices makes fresh, healthy foods more and more difficult to afford. Parents like me understand that this is why food security is national security.
Irayda Flores, President and CEO, El Mar de Cortez Corp: “If the prices continue to skyrocket, I would be obligated to raise my prices, which will affect Arizona families’ pockets. I believe that the solution for this would be passing new senate legislation that would allow farmers in the agriculture sector access to a reliable workforce. We need action this year, we cannot afford to wait.”
Vice President of Business Development, Local First Arizona Thomas Barr said: “Passing agricultural workforce solutions will help fortify our state’s future economic growth by keeping families together and allowing businesses to hire good hardworking individuals to build their careers here. As our state continues to face labor shortages in key areas, workers are needed now more than ever to sustain a strong Arizona economy. Small businesses in Arizona know that we need a labor solution as soon as possible. We urge congress to address this critical issue and act to keep families together and ensure a sustainable future for agriculture and small business throughout the country.”
Background
In 2021, the U.S. House of Representatives passed the Farm Workforce Modernization Act with bipartisan support. That was a good start, and now in the Senate, Senators Mike Crapo (R-ID) and Mike Bennet (D-CO) have taken the lead on negotiating improvements on the House’s solutions and moving the process forward. Passing new Senate legislation is critical to solving labor shortages facing the Arizona agriculture sector and sustaining the state’s economy as a whole.
According to a new Cato Institute report, the House-passed Farm Workforce Modernization Act would “would reduce labor costs for H-2A farms by about $1 billion in the first year and $1.8 billion in the second, which would result in many more workers being hired, more productivity, and lower prices for consumers.” For Arizona farmers, this would amount to $70.6 million in savings over two years (see report).
Additionally, a report from New American Economy indicates that immigrants make up 13.4% percent of Arizona’s population, pay $7.7 billion in taxes annually and make up 55% of its crop production. Arizona farmers desperately need a stable, year-round workforce—dairy farms, for example, are currently excluded from the H-2A program and cows must be milked 365 days a year.
On the national level, Texas A&M International University released data from a new economic study on the link between stabilizing the agricultural workforce and decreasing inflation and consumer prices, showing that ensuring farmers have a stable, secure, reliable, and legal workforce is crucial to keeping America’s grocery shelves stocked, combating inflation, and lowering food prices (including milk, eggs, meat, and produce) for all domestic consumers.
Addressing workforce shortages facing farm employers and stabilizing the H-2A visa application process is also crucial for enhancing our national food security by protecting domestic agriculture production. According to the USDA, next year, for the first time in U.S. history, we as a country will be importing more agricultural goods than we export.
ABOUT
ABIC Action is the political arm of the American Business Immigration Coalition (ABIC), a bipartisan coalition of over 1,200+ CEOs, business owners, and trade associations across 17 mostly red and purple states. ABIC Action promotes common sense immigration reform that advances economic competitiveness, provides companies with both the high-skilled and low-skilled talent they need, and allows the integration of immigrants into our economy as consumers, workers, entrepreneurs, and citizens.