Large Increases in Prevailing Wages for Farm Workers in 2024

Farmers and ranchers who hire seasonal workers on H-2A visas will face prevailing wages in 2024 that are about 5.54% higher, on average, than in 2023.  This occurs after a large increase in H-2A wages between 2022 and 2023.  The H-2A visa program requires that visa workers, and domestic workers in corresponding employment, are paid at least the prevailing wage, or Adverse Effect Wage Rate (AEWR).  AEWRs are determined by the US Department of Labor (DOL) and vary by region.  AEWRs will increase in every region between 2023 and 2024 with the largest increases in Hawaii (8.64%); Alabama, Georgia, and South Carolina (7.39%); and Oregon and Washington (7.12%).

AEWRs have increased rapidly in the past two years in states that rely heavily on the H-2A program.  Over the past two years in Alabama, Georgia, and South Carolina the AEWR increased by 22.44%, and in Florida the AEWR increased by more than 19%.  These four states account for over one quarter of all H-2A workers.  Farmers and growers in the southeastern US will face some of the largest mandated wage increases over the past two years and this increase in labor costs will almost certainly lead to higher prices for crops grown in the southeastern US.

The AEWR is based on the results of a survey conducted by the U.S. Department of Agriculture (USDA). Late last month the USDA released Farm Labor, its semi-annual report of the wage and employment survey of farm and ranch workers. The November report includes the wages of field and livestock workers averaged across four reference weeks throughout the year (in January, April, July, and October) which is what the DOL uses to determine the AEWR.  The annual average wage of field and livestock workers are reported for 18 different regions and for the U.S. overall.[1]

The following table shows the AEWR in 2023 and 2024 in each state, as well as the percentage increase in AEWR by state from 2023-2024, 2022-2024, and over the past decade.  In every state H-2A workers must be paid at least $14.53 per hour and in 42 states the mandated wage for H-2A workers is at least $15.14.[2]  The states with the highest AEWRs are California ($19.75), Oregon ($19.25), and Washington ($19.25).  California (79.38%) Arizona (63.69%), and New Mexico (63.69%) have seen the largest increases in AEWR over the past decade.

The final row shows the weighted average of AEWR and percentage increase in AEWR across all states, with states that employ relatively more H-2A workers receiving a higher weight.[3]  Because of the substantial increase in AEWRs in the past two years in some states that rely heavily on the H-2A program the weighted average increase in the AEWR across the US is 5.54% in the past year and 14.34% in the past two years.  The AEWR increased in every state by at least 36.61% over the past ten years, and across all states the average increase was 55.59%, which is substantially higher than the rate of price inflation (about 30%) or general wage inflation (about 36%) over the same decade.[4]

[1] Farms and ranches that rely on foreign born seasonal workers in the H-2A visa program must pay H-2A workers at least the AEWR in its region, unless the state minimum wage is higher, or a state workforce agency determines through its own survey that wages in the state are even higher than the AEWR.

[2] There is no AEWR for the state of Alaska.

[3] The weights are determined by the number of workers receiving H-2A prevailing wage certifications in each state during the most recent Federal fiscal year, as reported by the DOL.

[4] Price inflation is measured by changes in the Consumer Price Index and wage inflation is measured by changes in the Employment Cost Index.