Sens. Scott, Budd, colleagues introduce FARM Stability Act to stabilize agricultural labor costs
WASHINGTON — U.S. Senator Tim Scott (R-SC) joined Senator Ted Budd (R-NC) in introducing the Farmworker Access and Retention Modernization (FARM) Stability Act, which would codify the U.S. Department of Labor’s (DOL) initiative to stabilize agricultural labor costs. This legislation aims to provide farmers with greater certainty and clarity when forecasting labor costs as they plan for future growing seasons.
U.S. Senators Cindy Hyde-Smith (R-MS), John Boozman (R-AK), Mike Crapo (R-ID), Pete Ricketts (R-NE), Thom Tillis (R-NC), Cynthia Lummis (R-WY), and Roger Wicker (R-MS) joined in introducing the legislation.
“Farmers across South Carolina have been struggling with skyrocketing labor costs and an Adverse Effect Wage Rate that simply hasn’t reflected reality. That’s why I’m helping to lead the FARM Stability Act, which establishes a clear, fair, and consistent wage rate for agricultural workers. These reforms will help deliver the stability and predictability our farmers need to keep feeding our nation, while continuing to protect wages in the H-2A program,” said Sen. Scott.
“As labor costs continue to climb, our nation’s farmers and ranchers deserve to know the price tag associated with keeping their operations going. Agriculture is North Carolina’s leading industry and a cornerstone of our economy, but without a stable, reliable workforce, our producers cannot plan, threatening both their livelihoods and our nation’s food supply. The DOL has helped provide farmers with the transparency they deserve, but now we must ensure agricultural labor costs remain affordable by passing the FARM Stability Act,” said Sen. Budd.
“Farmers are extremely resourceful and resilient, but their success depends on circumstances beyond their control. Ensuring they can secure a dependable agriculture workforce will lift a major burden on them and help provide needed certainty. I’m proud to join Senator Budd in championing the FARM Stability Act to bring reliable and affordable labor to farm operations across the country,” said Sen. Boozman.
“The skyrocketing labor costs hitting Mississippi farmers are threatening their operations and their ability to put food on American tables. The FARM Stability Act takes the commonsense step of locking in the Trump administration’s reforms to the H-2A wage methodology, so farmers can plan ahead without fear that the next administration will pull the rug out from under them. I’m proud to join Senator Budd on this effort to provide relief and certainty to our producers who are burdened with costly regulatory overreach from previous administrations,” said Sen. Hyde-Smith.
“Codifying the Department of Labor’s recent updates to the AEWR would help clarify and stabilize wages in the H-2A agricultural labor program. A clear, consistent wage standard protects agricultural employers from uncertainty in year-to-year rule changes, helping both our workforce and our farmers, and keeping food on Americans’ tables,” said Sen. Crapo.
“When agriculture thrives, Nebraska thrives. The FARM Stability Act ensures that Nebraska farmers and ranchers can confidently plan for growing season. Nebraska’s future depends on certainty for farmers, ranchers, and agri-business. The FARM Stability Act supports agriculture today and provides long-term stability for producers,” said Sen. Ricketts.
“The FARM Stability Act delivers the certainty our farmers need by bringing clarity and predictability to the H-2A wage process. By codifying the Department of Labor’s approach, this commonsense legislation helps stabilize labor costs, strengthen our agricultural workforce, and ensure North Carolina’s farmers can continue to feed and fuel our nation,” said Sen. Tillis.
“Our nation’s producers work sunup to sundown to fuel our economy, communities, and families. As a lifelong rancher, I know the ag industry is never easy work. I’m proud to join my Republican colleagues on the FARM Stability Act, delivering much-needed clarity and financial relief so Wyoming’s farmers and ranchers can plan growing and grazing seasons with confidence as labor costs level out,” said Sen. Lummis.
The FARM Stability Act is supported by: Agricultural Workforce Coalition, Turfgrass Producers International,Tobacco Associates, Inc., U.S. Tobacco Cooperative, North Carolina Farm Bureau, NC Chamber, NC Agribusiness Council, NC Ag Partnership, NC Sweet Potato Commission, Tobacco Growers Association of North Carolina, North Carolina Growers Association, North Carolina Apple Growers Association, Blue Ridge Apple Growers Association, Hilltop Farm WNC LLC, AgCarolina Farm Credit, AgSouth Farm Credit, North Carolina Blueberry Council, NC Christmas Tree Association, NC Cotton Producers Association, North Carolina Greenhouse Vegetable Growers Association, Inc., NC Nursery and Landscape Association, North Carolina Peanut Growers Association, NC Soybean Producers Association, North Carolina Strawberry Association, North Carolina Vegetable Growers Association, North Carolina Watermelon Association, North Carolina Tomato Growers Association, and the North Carolina Sod Producers Association.
“The Ag Workforce Coalition appreciates Senator Budd’s leadership and his effort to codify the Administration’s interim final rule on H-2A wages. Wage reform is one critical aspect of needed changes to the H-2A program to ensure farmers, growers, and ranchers can continue to feed this nation. As the needs of labor-intensive agriculture continue to grow nationwide, we look forward to working with Congress to achieve lasting program reforms as quickly as possible,” said the Agriculture Workforce Coalition.
“We strongly support the FARM Stability Act as a practical and necessary step to help specialty crop producers across the Southeast remain competitive. Unpredictable labor costs have become a serious obstacle for farms trying to plan ahead, maintain stable employment, and compete in a global market. More importantly, instability inhibits the next generation’s ability to invest into their farm’s future. By bringing greater certainty to agricultural labor policy, this bill addresses a core challenge facing growers while helping protect the rural economies that agriculture sustains and the legacy of farm families across the nation,” said Kimberly Foley, Executive Director, Tobacco Associates, Inc.
Read the full bill text here.
BACKGROUND
Farmers have been grappling with rapidly rising labor costs, driven in large part by the mismanagement of calculating the Adverse Effect Wage Rate (AEWR) used in the H-2A Temporary Agricultural Worker program. In 2023, the Biden administration finalized a rule that altered the methodology for determining AEWR for H-2A agricultural workers, inflating the cost of farm labor. Last October, DOL sought to address this concern by issuing an Interim Final Rule (IFR). This rule established an annual adjustment to the hourly AEWR and created separate wage scales for entry-level and experienced H–2A workers, providing much-needed clarity for the agricultural industry.
- Last Congress, Sen. Scott introduced a Congressional Review Act disapproving the Biden DOL rule, “Adverse Effect Wage Rate Methodology for the Temporary Employment of H-2A Nonimmigrants in Non-Range Occupations in the United States”.
- Last year, Sens. Scott and Budd co-led a letter to DOL Secretary Lori Chavez-DeRemer requesting that DOL roll back these Biden-era regulations and bring stability to agricultural labor policy.
To ensure the future stabilization of agricultural labor costs, the FARM Stability Act would:
- Codify DOL’s Compensation Adjustment Factor for the AEWR.
- Ensure that housing provided by farm operators is adequately considered when determining the AEWR.
- Codify the Two-Tiered Wage Scale.
- Ensure that both entry-level and experienced agricultural workers are fairly compensated for their labor.
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