Growers spend a substantial amount of money every year to employ a labor force for their crops. Labor is the main issue that John Walt Boatright deals with as director of government affairs at the American Farm Bureau Federation.
“No matter where we go and no matter who we talk to in farm country, labor continues to be the focal point,” Boatright said.
Labor is a point of contention because of its high costs. Boatright pointed out during the Florida Agricultural Policy Outlook Conference earlier this month that the industry spent $41.8 billion on hired labor in agriculture in 2020. Approximately 34% of that amount was in nursery and greenhouse production, 30% in fruit and tree nuts and about 22% in vegetables and melons.
Florida employs the most H-2A workers in the country with 47,396 certified positions in 2024, at an adverse effect wage rate (AEWR) of $16.23. This rate represents a 9.9% increase from the previous year. Georgia was second in certified positions with 43,436 and an AEWR of $16.08, an increase of 9.5%.
“Despite some fluctuation and reduction in some key states, Florida remains the No. 1 H-2A state in the country. California, Washington, North Carolina and Georgia round out the top five states. The common denominator is that these states produce a huge amount of specialty crops that require intensive hand labor to plant, maintain and harvest,” Boatright said.
Not only do growers face high compensation rates for H-2A workers, but there are also administrative costs. Boatright noted that one-time filing fees can range from $760 to $1,690 per worker. There is a $205 consulate fee and a minimum of $400 to transport the worker to the United States. Housing costs can also range from $9,000 to $13,000 per worker, he added.
“If we do not get a handle on this adverse effect wage rate in terms of reforms and changes to the methodology or finding an alternative, we’re going to continue to see farms and ranches close the doors. The percentage that’s left for them at the end of their bottom line is shrinking,” Boatright warned.
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