A district court has overturned a burdensome aspect of a 2023 labor rule, which is good news for farmers and ranchers. The federal court recently decided that elements of the 2023 Adverse Effect Wage Rate Rule should be eliminated.
“Well, a district court out of Louisiana has recently vacated the 2023 H-2A disaggregation rule, which segregated wage rates based on job functions within the H-2A seasonal agriculture program,” explains John Walt Boatright, Director of Government Affairs at the American Farm Bureau Federation. “This means that we are awaiting guidance from Department of Labor.”
Boatright says the DOL rule would have been very costly to farmers and ranchers, who utilize the H-2A program to fill gaps in the workforce.
“It was estimated that the cost of this rule on family farms was going to increase substantially, and our economist estimated that the small family farm was going to see two to three times the increases that a larger farm would feel. So, this is a big win for agriculture and definitely for the small family farm.”
He adds there are still significant holes to fix when it comes to accessing farm labor.
“This is a positive step forward, but it is not all that needs to be done. We still are seeking fundamental reforms to the adverse effect wage rate, which will still be in effect. We’re still advocating for access for our year-round sectors who do not currently have access to this seasonal program. And we’re still looking for existing workforce reforms.”
The adverse effect wage rate requires Indiana to pay H2-A workers at least $19.57 per hour, while in Kentucky the rate is only $15.87 per hour.
Source: NAFB News Service
