The USDA’s Farm Labor Report, released this week, offers a glimpse into the future of farm expenses.
The Department of Labor uses the “field and livestock workers’ combined” wage rate reported in the November Farm Labor Report to establish most H-2A workers’ minimum wage, known as the Adverse Effect Wage Rate.
This year, the combined field and livestock worker wage rate nationally is $18.12, up 3.2% from the 2023 release.
Regional wages increased an average of 4.5%, but this reflects wide ranges of change across the country.
Fruit and vegetable farmers, the largest users of H-2A, spend 38% of their farm expenses on labor, and that share will continue to grow if wages grow as they have in recent years.
Rising farmworker wages are a challenge to American specialty crop producers competing with farmers in other countries who can hire at a fraction of the cost.
