DOL Rule Eases H-2A Costs for Farmers

The Department of Labor’s updated rule for calculating H-2A wage rates is bringing relief to U.S. farmers after years of inflated labor costs. National Council of Agricultural Employers President and CEO Michael Marsh says the rule corrects decades of flawed data that disconnected wage rates from actual market conditions. “The Department of Labor decided to use the USDA’s farm labor survey, which was never designed for that purpose. As the program grew, the misuse of that data caused wage rates to spiral out of control and disconnected them from the marketplace.” Marsh says the new rule uses Bureau of Labor Statistics data to provide more realistic pay rates and significant savings for producers. “When you compare the new rates to what farmers had to pay previously for H-2A workers, it’s a substantial savings. The Department of Labor estimated that in just the first year of implementation, it should save farmers $2.4 billion. Over ten years, those savings will reach more than $17 billion. It’s a huge win for agricultural employers in the United States.”