NEW ABIC Action Report Shows State-By-State Savings for Farmers and Agricultural Employers That Would Be Enabled by the Farm Workforce Modernization Act (FWMA)

WASHINGTON, D.C. – While American families are spending 20% more for their holiday dinners this year and farmers are struggling to stay in business, ABIC (American Business Immigration Coalition) Action has released new research showing dramatic wage savings for farmers should the Senate pass the Farm Workforce Modernization Act (FWMA) this year.

The report comes as the Department of Labor announced a new 7% – 15.5% spike in wage rates for farm guest workers under the H-2A program that will drive up costs for farmers and American consumers. This would be prevented if the Senate passes the FWMA (already passed in the House of Representatives), which would freeze H-2A guest worker wages for one year, then cap wages at 3.25%.

Key Findings:

The ABIC report lays out H-2A cost savings for individual farmers should the FWMA, which is critical to solving agricultural labor shortages and sustaining the U.S. economy,  become law this year. A few examples:

• A Colorado rancher who hires 25 temporary employees with H-2A would save at least $38,913 per year.

• A large potato operation in Idaho with 50 H-2A workers at harvest time would save over $98,573 per year.

• A small wheat farmer in North Dakota who hires a single H-2A custom harvester would save at least $2,090 per year.

• A livestock farmer in Kansas with 10 H-2A workers would save well over $17,549 in H-2A program costs alone.

To find data by state and farm size: Click Here.

“This report highlights the urgency of passing legislation currently being negotiated in the Senate by Senators Mike Crapo (R-ID) and Michael Bennet (D-CO),” 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 this legislation to prevent my farms from going out of business while also lowering the cost of Americans’ 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 Crapo and Bennet, 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.”

Said Craig Regelbrugge, co-chair, Agriculture Coalition for Immigration Reform, and executive vice president of AmericanHort: “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, farmers and consumers will suffer, and foreign producers will capture more of our markets, eroding America’s food security.”

Said Adam Lytch of L&M Companies and a member of the International Fresh Produce Association: “We have just begun harvest season here in Florida, and most of our H-2A workers are set to arrive in December. To know that we must face more than a 15% increase in wages when we are already facing high inflation is a body blow to our company. This is why Congress must fix this flawed wage formula and reform our immigration laws before this new wage goes into effect.”

The American Farm Bureau’s Annual Thanksgiving Survey shows Americans spending 20% more for their Thanksgiving meals this year.

Some individual prices include:

• 16-pound turkey: $28.96 or $1.81 per pound (up 21%)

• 14-ounce bag of cubed stuffing mix: $3.88 (up 69%)

• 2 frozen pie crusts: $3.68 (up 26%)

• Half pint of whipping cream: $2.24 (up 26%)

• 1 pound of frozen peas: $1.90 (up 23%)

• 1 dozen dinner rolls: $3.73 (up 22%)

• Misc. ingredients to prepare the meal: $4.13 (up 20%)

• 30-ounce can of pumpkin pie mix: $4.28 (up 18%)

• 1 gallon of whole milk: $3.84 (up 16%)

• 3 pounds of sweet potatoes: $3.96 (up 11%)

• 1-pound veggie tray (carrots & celery): 88 cents (up 8%)

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.