A federal court recently decided that elements of the 2023 Adverse Effect Wage Rate Rule should be eliminated. That decision is a step in the right direction toward comprehensive labor reform, according to the American Farm Bureau Federation (AFBF).

“Farm Bureau is pleased that the Department of Labor and a federal judge recognized that elements of the 2023 labor rule created an unfair wage structure that forced farmers to pay employees for jobs they may not usually perform,” AFBF President Zippy Duvall said. “Farmers care about the men and women who choose to work on their farms, and they support paying good wages for their employees, but the rule did not align compensation with work performed.”

The rule based the Adverse Effect Wage Rate—the minimum hourly wage that H-2A employers must pay their employees—on the Occupational Employment and Wage Statistics (OEWS) survey in addition to the Farm Labor Survey.

That change applied permanent, non-agricultural wage data to seasonal ag jobs. It also imposed higher OEWS-based pay rates for positions such as supervisors, heavy tractor trailer drivers and mechanics. On top of that, farms were often required to file separate contracts for each of those OEWS job categories, adding more regulatory burdens to an already complicated H-2A system.

The rule also mandated wage increases on growers every six months, which drove up labor costs for growers and deepened the ongoing farm labor crisis.

“It was estimated that the cost of this rule on family farms was going to increase substantially, and our economist estimated that the small family farm was going to see two to three times the increases that a larger farm would feel,” John Walt Boatright, AFBF director of Government Affairs, said. “So, this is a big win for agriculture and definitely for the small family farm.”

Farmers say the ruling is only a partial fix. The need for broader, long-term solutions remains as farmers continue to struggle with affordability, regulatory challenges and limited access to workers.

“AFBF has long advocated for reforms to the H-2A guestworker program to ensure workers are treated fairly, and farmers can afford to fill their labor needs,” Duvall said. “We appreciate the administration for listening to those concerns. We encourage leaders to continue along the path of reforming a broken system by improving the H-2A program and stabilizing our workforce for our farm families.”