The Alabama Farmers Federation is praising an interim final rule by the Department of Labor (DOL) which makes the H-2A agricultural guest worker program more accessible and affordable for farmers who produce America’s food and fiber. 

“Farmers rely on legal guest workers to fill the gap when the local workforce can’t meet their needs. Unfortunately, rule changes during the Biden Administration made the H-2A program increasingly costly and complicated,” said Federation President Jimmy Parnell, who hailed the interim rule while noting the likelihood of legal pushback from opponents. “This rule is another step toward fixing the H-2A program by applying common sense to wage calculations.”

Alabama Wage Rates:

New Adverse Effect Wage Rate (AEWR) requirements were effective Oct. 2. In Alabama, 92% of all on-farm jobs are expected to fall in Skill Level I.

The rule updates AEWR methodology by:

• Using wage data reported for each U.S. state and territory by the DOL Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) survey. Under the Biden Administration, use of unreliable Farm Labor Survey data led to skyrocketing labor costs for farmers. In Alabama, the minimum hourly H-2A rate increased from $11.99 in 2021 to the most recent rate of $16.08, a 34% increase. 
• Continuing a single AEWR for the five traditional occupational classifications. The AEWR will be divided into two skill-based categories to account for wage differentials arising from qualifications contained in the job offer. Other occupational classifications will have corresponding AEWRs set from the OEWS.
• Classifying jobs for AEWR purposes based on the duties performed for most workdays during the contract period.
• Addressing differences in compensation between U.S. workers and H-2A participants — who receive employer-provided housing at no cost — by implementing a standard adjustment to the AEWR for non-monetary compensation.

Shelby County Farmers Federation President Phillip Hunter chairs the American Farm Bureau Federation Ag Labor Issue Advisory Committee. He said the AEWR rule ensures the H-2A program remains effective in addressing farm labor shortages.

“These changes are welcome news for farmers who utilize the H-2A program,” said Hunter, who serves on the Federation’s state board. “By using reliable data, classifying jobs based on most of the work done and considering employer-provided housing, the Trump Administration is restoring this program to its original mission — providing legal, temporary labor for American farms. This benefits consumers who rely on our products and the families of guest workers who receive financial support from the work done on U.S. farms.”