By Jamie Martin
The Department of Labor’s 2023 rule change in the H-2A program continues to impact farm labour costs into 2025.
Known as the “disaggregation rule,” this change reclassified certain farm jobs into higher-paying categories, causing significant wage increases for American farmers.
Most H-2A workers still fall under traditional categories like farmworkers or equipment operators.
Some positions now fall into roles such as truck drivers, construction labourers, or supervisors, which are based on national wage data unrelated to farm conditions. These jobs often require certifications and earn much higher hourly wages — sometimes more than $10 extra per hour.
The rule requires farmers to pay the highest applicable wage if a worker performs even a small part of a reclassified job.
In states like California and Georgia, these reclassified roles could increase hourly wages by over $11 to $18 compared to regular farmworkers.
This has led to major wage increases on both small and large farms. A small farm with 10 H-2A workers could see a 30% rise in total wage expenses, while large farms may face over 10% annual increases. These rising costs contribute to a projected $53 billion in agricultural labour expenses this year.
Adding to the burden, the OEWS and FLS wage systems update separately, forcing farmers to adjust payrolls twice each year. States like Colorado face additional uncertainty with suspended data, requiring national averages.
“Fruit and vegetable producers spend up to 40% of their production expenses on labor alone to ensure that fresh produce is available across the country,” the article notes.
These rules not only raise costs but also add administrative work and reduce global competitiveness, as foreign producers can often sell crops for less while paying lower wages.
Photo Credit: gettyimage-jamesbrey
Categories: National