Specialty Crop Coalition Request Adverse Effect Wage Rate Clarity

As the Adverse Effect Wage Rate (AEWR) for H-2A guest workers continues to climb, specialty crop groups in five states filed a freedom of information request to understand how the USDA calculates the rate. The AEWR determines the minimum rate for H-2A workers.

The coalition is being led by the North Carolina Sweetpotato Commission (NCSC) and the Georgia Fruit and Vegetable Growers Association (GFVGA). Other organizations that have joined the coalition include:

Alabama Farmers Federation
Alabama Fruit and Vegetable Growers Association
Alabama Nursery and Landscape Association
Blue Ridge Apple Growers Association
Georgia Agribusiness Council
Georgia Berry Exchange
Georgia Farm Bureau
Georgia Green Industry Association
Georgia Peach Council
Georgia Pecan Growers Association
Georgia Watermelon Association
International Fresh Produce Association
National Council of Agricultural Employers
North Carolina Apple Growers Association
North Carolina Christmas Tree Association
North Carolina Farm Bureau
North Carolina Growers Association
North Carolina Nursery & Landscape Association
North Carolina Strawberry Association
North Carolina Tomato Growers Association
North Carolina Vegetable Growers Association
North Carolina Watermelon Association
Michigan Asparagus Association
South Carolina Farm Bureau
South Carolina Peach Council
South Carolina Small Fruit Growers Association
Tobacco Growers of North Carolina

The Executive Vice President of GFVGA reported that Georgia growers have experienced 31% increases in AEWR over the last three years. The Executive Director of NCSC stated that North Carolina growers have experienced an 18% increase in AEWR over the last three years. The problem is that there is no visibility to how the rates are determined. With labor being a major input cost, growers need better visibility to plan appropriately.

Specialty crop growers are reliant on the H-2A program to meet labor demands. There are no mechanized alternatives for many crops. The coalition is in communication with representatives to voice concerns about rising AEWR rates and possible reform.