3.25% wage cap from House Farm Workforce Modernization Act would save farmers $2.8 billion over two years, secure the border and lower the cost of food. Senate expected to improve on the House version.
WASHINGTON, D.C. — While American families are spending 20% more for their Thanksgiving dinners this year and farmers are struggling to keep their doors open, the Department of Labor announced the new 7% – 15.5% spike in Adverse Effect Wage Rates for farm guest workers that will drive up costs for farmers and American consumers.
“This highlights the urgency of passing legislation currently being negotiated in the Senate by Senators Mike Crapo and Michael Bennet,” said James O’Neill, ABIC Action Outreach Director. “Such legislation would improve upon the House-passed Farm Workforce Modernization Act (FWMA), which would freeze H-2A guest worker wages for one year, then cap wages at 3.25% so that farmers can keep their doors open, and have the transparency and predictability they need to budget for labor.”
Farmers in most states face a steep hike in labor costs — averaging 7% nationally, and as high as 15.5% in Florida, based on the latest USDA Farm Labor Survey.
Said Shay Myers, Owyhee Produce CEO and the nation’s top fresh vegetable grower based in Idaho and Oregon: “Today’s data showing Idaho’s 6.8% increase is devastating. Fortunately the House Farm Workforce Modernization Act includes a 3.25% wage cap, but if the Senate fails to act, many farms will have to close their doors. It is urgent that the Senate pass ag workforce solutions to prevent my farms from going out of business while lowering the cost of your food.”
He continued: “I am also tired of politicians giving lip service to inflation or border security and failing to act. The Farm Workforce Modernization Act is a serious effort to fix the labor shortage, lower inflation and secure the border. We urge Senators Mike Crapo (R-ID) and Michael Bennet (D-CO), who are leading negotiations on the Senate version, to move their bill forward as soon as possible to ensure that farmers can access the labor they need, and afford to stay in business.”
“Farmers in most states will soon face a steep hike in labor costs — averaging 7% nationally, and as high as 15.5% in Florida, based on the latest USDA Farm Labor Survey. Unless the Senate acts swiftly to pass workforce modernization legislation, farmers and consumers will suffer, and foreign producers will capture more of our markets, eroding America’s food security,” said Craig Regelbrugge, Co-Chair, Agriculture Coalition for Immigration Reform and Executive Vice President of AmericanHort.
According to the Cato Institute, if it was to be implemented, the House Farm Workforce Modernization Act would save farmers over $2.8 billion over two years. Hence the urgency of the Senate passing its counterpart bill so the legislation becomes reality to lower inflation, fix the labor shortage and secure the border.
The American Farm Bureau’s Annual Thanksgiving Survey shows Americans spending 20% more for their Thanksgiving meals this year.
Some individual prices include:
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16-pound turkey: $28.96 or $1.81 per pound (up 21%)
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14-ounce bag of cubed stuffing mix: $3.88 (up 69%)
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2 frozen pie crusts: $3.68 (up 26%)
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Half pint of whipping cream: $2.24 (up 26%)
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1 pound of frozen peas: $1.90 (up 23%)
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1 dozen dinner rolls: $3.73 (up 22%)
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Misc. ingredients to prepare the meal: $4.13 (up 20%)
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30-ounce can of pumpkin pie mix: $4.28 (up 18%)
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1 gallon of whole milk: $3.84 (up 16%)
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3 pounds of sweet potatoes: $3.96 (up 11%)
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1-pound veggie tray (carrots & celery): 88 cents (up 8%)
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12-ounce bag of fresh cranberries: $2.57 (down 14%)
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 agriculture sector and sustaining our economy as a whole.
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.