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Harper Urges Ga. Delegation to Pause on H-2A Visa Program
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ATLANTA — Last month, Georgia Agriculture Commissioner Tyler Harper penned a letter to Georgia’s Congressional Delegation urging members to take action to pause the Biden Administration’s proposed H-2A Program Adverse Effect Wage Rate increase for 2024. The proposed increase would add an estimated $50 million to Georgia producer’s on-farm labor costs in 2024, and comes as farmers are already facing sky-high input costs and inflation. This arbitrary rate increase will have a devastating impact on Georgia’s farm families and will ultimately lead to increased food costs for Georgia consumers. Commissioner Harper’s full letter is below:
Honorable Members of the Georgia Delegation,
I am writing to you today on behalf of Georgia’s farm families to express my immense concern over the upcoming H-2A Program Adverse Effect Wage Rate (AEWR) increase supported by the Biden Administration. Georgia farmers are already facing unprecedented challenges from sky-high fuel and fertilizer prices to supply chain disruptions to significant crop loss due to severe weather events like Hurricane Idalia. Implementing this policy – at a time when our farmers can least afford it – will have a devastating impact not only on our state’s #1 industry, but on every household across our state.
Earlier this year, I was grateful for Senator Ossoff’s bipartisan support of the Farm Operations Support Act with Senator Tillis of North Carolina to reduce food costs for American consumers by reverting the AEWR back to the December 2022 rate for the remainder of 2023. While this legislation fell short of becoming law, it is vital that Georgia’s Congressional Delegation move to protect our state’s number one industry by supporting a freeze on the proposed AEWR increase scheduled to go into effect in 2024. Without immediate action to prevent these increases from going to effect, Georgia farmers will be forced to take drastic measures to stay afloat, including making production cuts – negatively impacting our state’s economy and increasing prices for consumers at the grocery store.
We are incredibly proud that 96% of Georgia’s roughly 42,000 agricultural operations are family farms. Many of these family operations rely heavily on the H-2A program to secure the labor needed to harvest their crops and bring them to market. In fact, Georgia farms employ around 35,000 H-2A labors – roughly 9% of all US H-2A laborers. Right now, labor already accounts for roughly 40% of on-farm expenses, and the Biden Administration’s 7% increase to the AEWR would force Georgia producers to pay more than $50 million in additional H-2A wages compared to 2023. Given the significant increases in nearly every input cost and the significant crop losses caused by everything from hail to hurricanes to untimely freezes, it is not a stretch to say the AEWR increases could be the final nail in the coffin for numerous family farms across our state.
As one of the leading agricultural states in the nation, the H-2A program plays an important role in the success of our agriculture industry, but the program is quickly reaching a breaking point where the cost of using the program significantly outweighs its benefits. It is critical to make the necessary changes to improve the H-2A program’s viability, and supporting a freeze on the AEWR is an important first step.
The people of Georgia – our farm families, trade associations, local elected officials, and the men and women across our state whom I was elected to represent – are united in urging you to stop the proposed AEWR increase for 2024. The consequences of such an increase would have a long lasting, negative impact on an industry that is essential to Georgia’s economy and those whose lives depend on it—and an immediate reversal is the only solution. I sincerely hope that you will take action to protect Georgia farmers and consumers and protect Georgia’s number one industry.
Sincerely,
Tyler J Harper
Commissioner, Georgia Department of Agriculture
–Georgia Department of Agriculture
AFBF: Despite Rising Wage Rate, Farmers Must Rely on H-2A Program
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WASHINGTON — According to data analyzed in a recent Market Intel report, H-2A usage reached new highs in fiscal year 2023, despite an increase in the Adverse Effect Wage Rate, which outpaced the hourly wage growth rate of all private employees. This increase in both demand for workers and wage rate continues to put stress on the bottom lines of farmers and ranchers.
The Market Intel, H-2A Growth Slows, But Remains Strong, details the total number of certified H-2A positions at 378,513, an increase of 2% over fiscal year 2022. While this is a slower rate of increase than in years past, the number of positions certified is still up by more than 100,000 workers compared to fiscal year 2020. This is coupled with a nearly 19% increase in the required wage rate since fiscal year 2020, causing labor to be one of the costliest aspects of doing business for farmers and ranchers.
Additionally, the Market Intel outlines the top states for H-2A positions, which mirrored usage from fiscal year 2022, and, for the first time, H-2A disclosure data from all 50 states plus Puerto Rico.
“With the availability of more data, we now also know more about the distribution of certified positions for all states,” AFBF Senior Economist Veronica Nigh writes in the Market Intel. “It is worth noting that every single state and territory where AFBF has membership (all 50 states and Puerto Rico) had H-2A certified positions granted.”
Data included in the H-2A Disclosure Data for fiscal year 2023 indicates that the number of certified positions increased in 37 states and decreased in 14 of the 51 states and territories. Even though the national growth rate in certified positions was just 2%, more than 10 states and territories had double-digit growth rates in fiscal year 2023 compared to fiscal year 2022.
“As wage rates continue to rise along with the demand for farmworkers, farm families are being forced to take a hard look at their balance sheets just to stay afloat,” said AFBF President Zippy Duvall. “Farming and ranching is a labor intensive business, and many of our crops require skilled labor to plant, tend and harvest. But margins remain slim on the farm. This data shows how important and urgent it is that we get a workable fix for the H-2A program and the AEWR.”
Read the full Market Intel here.
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–American Farm Bureau Federation
Michigan lawmakers fight proposed H-2A filing fees
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LANSING, Mich. — A bipartisan group of 12 Michigan lawmakers oppose filing fee increases for H-2A and H-2B applications that would hurt farmers and small businesses.
A proposed rule from the Department of Homeland Security (DHS) calls for raising the cost H-2A petition fees from $460 to $1,090. H-2B filing costs would rise from $460 to $1,080 for named beneficiaries and from $460 to $580 for unnamed beneficiaries.
“While we understand the need for DHS to occasionally review visa fees, we believe such a sharp increase in fees would compound the impact of the increased costs the agriculture economy is facing right now,” the lawmakers wrote to DHS Secretary Alejandro Mayorkas in a letter led by Rep. Bill Huizenga.
“We are concerned this will make running an agricultural operation more difficult, limit job opportunities for Americans, raise prices for consumers, and harm our nation’s food security.”
The proposed filing fees would only add to the skyrocketing costs that are putting strain on Michigan farmers. Labor already accounts for nearly 40% of total production costs on some farms, and Michigan’s minimum wage guestworkers must be paid will rise 12.8% this year to $17.34 per hour.
“Our farmers who rely on the H-2A program for workers have been hit hard this year, beginning with a nearly $2 increase in the wage rate, a new rule from the Department of Labor that we expect to lead to increased cost, and now a proposal for an unwarranted increase in fees,” said John Kran, MFB national legislative counsel. “We’re thrilled to see broad, bipartisan support from our lawmakers to address this proposal.”
U.S. Reps. Dan Kildee, Lisa McClain, Elissa Slotkin, Jack Bergman, Rashida Tlaib, John Moolenaar, Hillary Scholten, Tim Walberg, Debbie Dingell, John James, and Haley Stevens co-signed the letter to Mayorkas.
The proposed DHS rule would also create a new $600 fee on various other work visas — including H-2A and H-2B — to fund the government’s asylum program for people seeking shelter in the U.S. The Michigan Farm Bureau asserted in its recent comments to DHS that farmers shouldn’t be forced to pay for a program that’s not related to agriculture, and that the costs for any asylum program should be appropriated through Congress and paid out of the Treasury.
“Although the severity and scope of this $600 fee is alarming on its own, the collected funds would go towards unrelated asylum program needs,” the lawmakers wrote, noting the proposed asylum fees for worker petitions would not only impact agriculture, but also affect a wide array of industries from tourism to nonprofits.
“With these considerations in mind, we request DHS reconsider the implementation of these significant fee increases within the rule,” the letter concludes. “We look forward to working with DHS on improving visa services on behalf of the Michigan businesses we represent and protecting our borders.”
— Michigan Farm Bureau
H-2A and H-2B services announce merger
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CHARLOTTESVILLE, Va. — másLabor, the nation’s leading provider of comprehensive services for employers participating in the H-2A and H-2B nonimmigrant visa programs, has announced a merger with AgWorks H2, LLC (“AgWorks”) a Georgia-based H-2A and H-2B consulting firm that ranks among the nation’s top providers.
“AgWorks has a proven success model, with a deep compliance focus and highly knowledgeable leadership,” said Edward Silva, CEO of másLabor, who recently purchased másLabor in July 2021. “But as we and the market continue to evolve and grow, there are clear benefits to integration, shared systems and knowledge, and more active collaboration.”
One such benefit is the economy of scale. Together, the two companies obtain approvals for their clients to employ over 60,000 foreign workers per year – more than the next three largest service providers combined. This gives the companies unique insight into issues faced by clients in every geography and industry.
“Together, we have a detailed view of the labor market for the entire country as it relates to H-2 workers, across nearly every industry. We know the challenges, the opportunities, and we have best-in-class solutions.” said Dan Bremer, current President of AgWorks who will remain in a key leadership role to both másLabor and AgWorks.
Under the new structure, AgWorks will expand its service offerings to align with those offered by másLabor, including assistance with domestic job applicants, comprehensive audit services, and other visa categories. The companies will also consolidate their compliance teams to provide clients with expertise and best practices unrivaled in the industry. Finally, integration also comes with a significant investment in technology to provide clients with a more efficient and effective process throughout.
“Our core mission is saving American businesses, full stop. We are thrilled to join with the AgWorks team in this mission, and their decades of experience,” said Silva.
Click here to learn more about MasLabor and AgWorks.
— Mid-Atlantic Solutions, LLC
H-2A informational event at Cornell Lake Erie Research and Extension Lab
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JAMESTOWN, N.Y. — LERGP will host an H-2A labor workshop at the Cornell Lake Erie Research and Extension Lab, 6592 West Main Rd. Portland NY 14769. Those interested in learning more about Ag-business labor challenges can attend the event at 9:00 a.m. on July 11th. The workshop provides an opportunity to share information on the H-2A program as the regional agricultural economy experiences challenges with labor supply and labor costs.
Ag service providers will be on-hand to share their expertise and services in the H-2A world. Growers looking to use this program for the winter of 2023 will need to start their application process now. When getting started, most growers seek out assistance to apply for, recruit or even manage and house H-2A labor.
As part of the event growers will share their experiences in transitioning to H-2A. Key to the success of the transition is changing management practices, recruiting labor and managing new recruits. The event will also focus on the challenges of an inexperienced workforce and techniques to control the costs associated with training and education.
The event will also provide an update on the current regional labor situation. The data that supports the forecast of future labor costs in the region as well as methods of sustainable agriculture that address the labor challenges without H-2A.
This is a FREE Event but please register so we know how many will be in attendance. To register please visit: https://lergp.cce.cornell.edu/events.php.
The Lake Erie Regional Grape Program is one of many programs offered by Cornell Cooperative Extension of Chautauqua County (CCE-Chautauqua). CCE-Chautauqua is a community based educational organization, affiliated with Cornell University, Chautauqua County Government, the NYS SUNY system, and the federal government through the United States Department of Agriculture’s National Institute of Food and Agriculture. For more information, call 716-664-9502 or visit our website at www.cce.cornell.edu/chautauqua . Cornell University Cooperative Extension provides equal program and employment opportunities.
–Kevin Martin
Cornell Cooperative Extension of Chautauqua County
Lake Erie Regional Grape Program
H-2A visas and Farm Workforce Modernization Act
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GREEN BAY, Wis. — The newest episode of the Dairy Stream podcast focuses on the proposed Farm Workforce Modernization Act, which would provide a year-round option to include employees in livestock agriculture. The bill was approved by the House of Representatives but has not moved in the Senate.
Dairy Stream host Mike Austin talked with Brandon Davis, an agricultural labor attorney and partner at Phelps Dunbar in New Orleans, about the requirements of H-2A, the impact it has on the agricultural community and future possibilities.
“I think what we should expect with the Farm Workforce Modernization Act of 2021 is a good program will become even better and will reach a broader audience like dairy,” Davis said.
Edge Dairy Farmer Cooperative sponsored this episode.
— Dairy Business Association – Edge Dairy Farmer Cooperative
For more news from Wisconsin, click here.
NMPF statement on appropriations language allowing dairy farmer participation in H-2A program
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ARLINGTON, Va. — From NMPF President and CEO Jim Mulhern:
“NMPF thanks Reps. Henry Cuellar (D-TX) and Dan Newhouse (R-WA) for their tireless efforts on behalf of America’s dairy producers to include year-round employees on farms in the H-2A farm worker visa program. We urge Congress not to delay providing dairy farmers with access to the H-2A program during a time of critical labor needs.
“Dairy farmers largely have not been able to use H-2A visas because the current program is limited only to the temporary and seasonal labor needs of agricultural employers. The current H-2A program simply isn’t an option for a commodity that ‘harvests’ its product multiple times a day, every day.
“The Cuellar-Newhouse bipartisan amendment to this year’s Homeland Security Appropriations bill would allow farm employers to use the H-2A visa program to hire foreign workers, regardless of whether those employees are engaged in temporary or seasonal work. Under this amendment, dairy farmers and other year-round producers could use the H-2A program to supplement their domestic workforce.
“Beyond just providing dairy temporary access to the H-2A program, the measure is important because we must continue to build momentum for ag labor reform as we await a Senate measure that carries forward and improves upon the Farm Workforce Modernization Act, which the House approved in a bipartisan vote in March.
“Recent history shows bipartisan support for farm workforce legislation that addresses the needs of producers and farmworkers. It is critical that the government continues to build on these bipartisan efforts to create a system that provides secure, legal employment. We thank lawmakers for their efforts toward achieving this goal.”
— National Milk Producers Federation
For more articles on Dairy, click here.
Kansas Wheat pleased with designation of H-2A workers as national security priority
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MANHATTAN, Kan. — Kansas Wheat is pleased with the Department of State’s announcement regarding H-2A workers and their designation as a national security priority. We commend them on their quick reaction to clarifying an uncertain situation. We are glad to see that the Department of State heard the concerns of those most affected, considered the consequences, and swiftly acted accordingly.
Kansas Wheat has several members that would have been directly affected had this not been resolved. This is good news for farmers not only in Kansas, but across the entire region. These workers are a vital part of the agriculture labor force and will begin arriving soon for harvest.
We also would like to commend the leadership of Senators Moran and Marshall for their lead in trying to pre-emptively solve a potential problem. Their work with farmers and farm organizations to address the situation cannot go unnoticed. We are glad that Kansas continues to have leaders that fight for their farmer constituents.
— Statement by Justin Knopf, President, Kansas Association of Wheat Growers
For more Kansas news, click here.
Secretary Perdue statement on H-2A modernization
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WASHINGTON — U.S. Secretary of Agriculture Sonny Perdue today issued a statement applauding the Department of Labor’s final rule modernizing the H-2A visa program:
“This final rule streamlining and modernizing the H-2A visa process will go a long way in ensuring American farmers have access to a stable and skilled workforce, all while removing unnecessary bureaucratic processes. USDA’s goal is to help farmers navigate the complex H-2A program that is administered by Department of Labor, Department of Homeland Security, and the State Department so hiring a farm worker is an easier process,” said Secretary Perdue. “These modernizations make the Federal government more responsive to our customers, ensuring American agriculture continues to lead the world for years to come.”
Background:
The final rule will streamline the H-2A application process by mandating electronic filing of job orders and applications. These elements are designed to bring the H-2A application process into the digital era, by harnessing the power of the FLAG electronic filing system to share information with other federal agencies like the Department of Homeland Security while also sharing information with the State Workforce systems and domestic farmworkers.
Additionally, the final rule will provide additional flexibilities to cut down on unnecessary burdens on the agricultural employers that use the program. These flexibilities include the ability to stagger the entry of workers into the country over a 120-day period and allowing agricultural employers the flexibility to file a single application for different dates of need instead of multiple applications.
–USDA
For more articles concerning farm labor, click here.
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