Media Center • Press Releases

Scott, Budd, Norman Lead Push for Wage Rate Reform to Support U.S. Farmers

WASHINGTON — U.S. Senator Tim Scott (R-S.C.) joined Senator Ted Budd (R-N.C.) and Congressman Ralph Norman (R-SC-5) in leading a bipartisan, bicameral effort urging  Department of Labor (DOL) Secretary Lori Chavez-DeRemer to reform the Biden administration’s wage rate rule for farm workers on the H-2A visa program. The current wage rate methodology for farm labor forces U.S. farmers to pay H-2A workers the highest wage rate for all hours worked regardless of the task, even if the task is a minor part of their role. This rule has resulted in overinflated wage rates disconnected from real farm labor market conditions during a time when expenses and labor costs for farmers are already at record highs.

Excerpts from the letter:

“As we continue our work during the 119th Congress here in our nation’s capital, it has been made abundantly clear that farmers continue to face serious challenges back home. Our rural communities have long shown resilience in the face of daunting circumstances and have a proven track record of overcoming various difficulties to get food on the table. Today, they face a number of issues, including high input costs, a widening trade deficit, and a long road to recovery after recent natural disasters. On top of these hardships, the ongoing shortage of a reliable agricultural workforce remains a paramount concern that threatens the future of American agriculture.

“While consistent access to agricultural labor has always been difficult, the Biden Administration further complicated this issue by applying a series of rules that fundamentally altered the implementation of the H-2A visa program and the methodology used to determine the Adverse Effective Wage Rate (AEWR). These changes placed a significant burden on American farmers by further increasing farm labor wages. Your team at the U.S. Department of Labor (DOL) has recognized the impact of these policies and taken important steps to address them. We commend your efforts, particularly with the recent progress in halting enforcement of the Biden Administration’s farm labor unionization rule and advancing a proposal to rescind provisions within it […]

“Enforcement of this rule directly contributes to higher food costs for all Americans. Last Congress, various congressional colleagues helped in leading a bicameral resolution of disapproval under the Congressional Review Act to protect producers from this rule.   Unfortunately, the rule was still finalized, which has caused unnecessary and burdensome cost increases for our nation’s farmers. We encourage you to fully rescind this out-of-touch rule to create more pragmatic labor wages for America’s farmers.

“The Trump Administration has a unique opportunity to bring long-overdue clarity and stability to agricultural labor policy. As you continue your service as Secretary of Labor, we respectfully urge you to not only push back against the Biden Administration’s harmful rules, but also to work collaboratively with your colleagues in President Trump’s Cabinet and in Congress to make the H-2A visa program more accessible and flexible for all producers, and to reform the AEWR methodology to prevent unsustainable wage increases. We stand ready to partner with you and your team at the DOL to find practical, long-term solutions to these pressing challenges.”

Read the full letter and list of signers HERE. 

Background

  • The Adverse Effective Wage Rage (AEWR) is the minimum wage rate employers must pay H-2A workers.
    • From 2024 to 2025, South Carolina saw a 10 percent increase in the H-2A wage rate, with an increase of 37 percent over the last five years.
    • The AEWR number is calculated to be the annual average gross hourly wage within a particular U.S. Department of Agriculture’s Farm Production Region.
      • As of 2024, South Carolina’s AEWR = $16.08. 
  • In 2023, Sen. Scott introduced a joint resolution to overturn the Biden administration’s burdensome DOL rule that requires farmers to pay higher and fluctuating wages for workers on a H-2A visa.

###

Print
Share
Like
Tweet