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Rep. Clyde Raises Concerns about Increase to the Annual Effect Wage Rate for H-2A Program

Washington, D.C. — Today, Congressman Andrew Clyde (GA-09) led 45 of his colleagues in sending a letter to U.S. Department of Labor Secretary Marty Walsh expressing concerns about a potential average hourly wage rate increase for users of the H-2A visa program.
 
On November 23rd, 2022, the U.S. Department of Agriculture’s National Agricultural Statistics Service released their semi-annual Farm Labor Report, which included an annual average fiscal-year increase across all states of 7% on the Adverse Effect Wage Rate (AEWR) for 2023.
 
The lawmakers write: “Every farm labor region and state experienced a higher average wage rate in 2022, and now faces the risk of a substantially higher increase in the AEWR in 2023 over 2022. In a downturn economy, this would be disastrous for our states’ farmers, ranchers, and fruit and vegetable growers, often short-handed to harvest specialty crops.”
 
“This unsustainable and unrealistic increase will have disastrous effects on our farmers and growers — in addition to the burdensome costs passed down to consumers already battling soaring inflation,” said Clyde. “My home state of Georgia alone faces an unprecedented 14% one year increase, detrimentally harming our agricultural production and unquestionably benefitting foreign competitors. I strongly urge Secretary Walsh to put American farmers, rural communities, and consumers first by retracting the recommended wage raise hike for H-2A workers.”
 
“Year over year, the Adverse Effect Wage Rate proves to be the biggest driver of cost increases and unpredictability in the H-2A program. These increases continue to threaten the livelihoods of our farmers. We urge the Department of Labor to take decisive steps to improve and stabilize the AEWR,” said American Farm Bureau Federation President Zippy Duvall.
 
“GA farmers produce over 30 different fruit and vegetable commodities and all require intensive hand labor. Our only dependable labor source is through the H2-A program but this excessive wage rate increase will only result in fewer jobs being offered in Georgia. This increase will ultimately drive more jobs to our foreign competitors while making our country more reliant on foreign suppliers and harming our nation’s ability to feed itself. Rising wage rates are a reality that our growers expect and plan for but a 14%, one year increase is unsustainable. We must find a way to develop a program where growers are not waylaid by double-digit increases year over year,” said Chris Butts, Vice President of the Georgia Fruit and Vegetable Growers Association.
 
“We appreciate all of the hard work that has been devoted to this extremely important issue for Georgia agriculture from Congressman Clyde and his staff. The impact of a 14% wage increase in a single year for H-2A workers in Georgia will be devastating to Georgia’s farmers and will remove over $100 million from Georgia’s rural economy. This shock comes as farmers are already facing record high input costs and a much smaller share of the food dollar. If this increase stands, I’m afraid that you will see many farmers forced out of business and more food production shifted to Central and South America, away from the American Farmer,” said Will Bentley, President of the Georgia Agribusiness Council.
 
“A 14% wage rate increase is excessive and puts Georgia growers at a huge disadvantage to our foreign competitors who pay their workers less per day than we pay per hour. This is a massive hit to growers on top of inflation and record input costs that will ultimately harm our rural communities by driving agricultural production out of Georgia,” said Drew Echols of Jaemor Farms.
 
Supporting organizations include: American Farm Bureau Federation, Georgia Fruit and Vegetable Growers Association, Georgia Agribusiness Council, Georgia Farm Bureau, Indiana Farm Bureau, Michigan Farm Bureau, and South Carolina Farm Bureau.
 
Co-signers include: Representatives Rick Allen (GA-12), Jim Baird (IN-04), Jack Bergman (MI-01), Cliff Bentz (OR-02), Larry Bucshon (IN-08), Kat Cammack (FL-03), Buddy Carter (GA-01), James Comer (KY-01), Mario Diaz-Balart (FL-25), Jeff Duncan (SC-03), Randy Feenstra (IA-04), Drew Ferguson (GA-03), Michelle Fischbach (MN-07), Virginia Foxx (NC-05), Scott Franklin (FL-15), Lance Gooden (TX-05), Carlos Gimenez (FL-26), Marjorie Taylor Greene (GA-14), Michael Guest (MS-03), Glenn Grothman (WI-06), Jody Hice (GA-10), Clay Higgins (LA-03), Bill Huizenga (MI-02), Dusty Johnson (SD-At Large), Trent Kelly (MS-01), Doug LaMalfa (CA-01), Barry Loudermilk (GA-11), Nancy Mace (SC-01), Dan Meuser (PA-09), John Moolenaar (MI-04), Barry Moore (AL-02), Ralph Norman (SC-05), Burgess Owens (UT-04), Greg Pence (IN-06), John Rose (TN-02), John Rutherford (FL-04), Maria Elvira Salazar (FL-27), Austin Scott (GA-08), Elise Stefanik (NY-24), Chris Stewart (UT-02), William Timmons (SC-04), Glenn “GT” Thompson (PA-15), Tim Walberg (MI-07), Mike Waltz (FL-06), and Joe Wilson (SC-02). 
 
Full text of the letter is available HERE.


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