by Mitch Galloway

Michigan farmers wanting to affect future adverse effect wage rate calculations should fill out USDA’s latest Farm Labor Survey as thoroughly as possible, industry insiders say.

The survey, which serves as a guide for farm producers when hiring workers, helps establish minimum wage rates for ag workers, assists legislators in determining labor policies and estimates the demand for labor.

In recent months, Michigan Farm Bureau, other farm groups and legislators have voiced opposition to how labor wages are determined, including asking for an H-2A visa guestworker wage freeze at 2023 levels until there’s some form of a long-term solution.

A January bill introduced by Rep. John Moolenaar, R-Mich., the Supporting Farm Operations Act, calls for freezing the adverse effect wage rate set by the U.S. Department of Labor from 2023 until the end of 2025.

On Jan. 1, Michigan’s AEWR rose to $18.50 per hour, which is the fourth highest in the nation behind California’s $19.75, the Pacific Region's $19.25 and Hawaii's $18.74.

“Farmers across Michigan may soon receive the Farm Labor Survey from USDA-NASS,” said Sarah Black, general manager of Great Lakes Ag Labor Services, a Michigan Farm Bureau affiliate that saw an 43% increase in the number of new clients requesting administrative support services to use the H-2A foreign worker visa program in 2023.

Black says the semiannual survey will be used by the Department of Labor to set the next AEWR. Growers should only include base wages for agricultural workers, not paid bonuses, overtime pay or other incentive pay.

“Growers should not include any H-2A workers, their wages or any labor contractor fees,” Black adds. “Growers should also not include any benefit pay like housing, meals or insurance. And they should not include in your reported numbers any wages from employees doing professional services — like an on-farm veterinarian or consultant — from retail workers or any workers doing value-added services like processing.”

Farmers are asked to report employment and wage information in the Farm Labor Survey by April 17. Survey results will be published May 22.

One industry especially affected by years of AEWR increases is specialty crops.

“AEWR has increased 20% over the past two years, yet net farm income has decreased 27%,” says Dawn Drake, general manager of the Michigan Agricultural Cooperative Marketing Association, a voluntary membership association made up of more than 600 apple-grower members.

“This is not sustainable for specialty crop farmers since they are unable to make up the difference by increasing their prices. Another important point is the ripple effect this will have on local communities if we cannot put a pause on the AEWR and farmers are forced out of business.” 

Drake pointed to a grower in Oceana County who works with 42 businesses, and two growers in Van Buren County who work with dozens of other businesses. 

“All of those businesses will be affected if farmers are forced out of business, leaving their local communities in shambles,” she says.

Michigan Farm Bureau recently asked members and supporters of U.S. agriculture to send messages to lawmakers about H-2A wage rates. The group received 8,400 messages from 1,408 people.

Galloway writes for Michigan Farm Bureau.

Source: MFB