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Wage relief for ag effort left out of $1.7T spending bill

Michigan farmers using the H-2A program recently learned they will be required to pay $17.34 per hour in 2023, a 12.8% increase from the 2022 rate of $15.37, marking the ninth consecutive year for an increase and placing Michigan in the fourth-highest wage category in the nation. Image credit: East Carolina University
Date Posted: December 20, 2022

The Hail Mary play to stop a looming labor crisis for farmers has fallen short.

First introduced with only four days left in the legislative session, it was an uphill battle from the start for the Affordable and Secure Food Act. The bipartisan proposal called for addressing the escalating Adverse Effect Wage Rates (AEWR) and chronic challenges to securing an adequate ag labor workforce.

The bill was not included in the final version of the 4,155-page, $1.7 trillion omnibus spending package Congress approved Friday.

The legislation would have placed a one-year freeze on AEWR and saved U.S. producers $23 billion on labor costs over the next 12 years, among other benefits for ag, according to the bill’s sponsors.

Michigan farmers using the H-2A program recently learned they will be required to pay $17.34 per hour in 2023, a 12.8% increase from the 2022 rate of $15.37, marking the ninth consecutive year for an increase and placing Michigan in the fourth-highest wage category in the nation.

More than 800 people joined Michigan Farm Bureau in calling on Congress to support the Affordable and Secure Food Act by sending messages to their elected officials.

“Fighting against unsustainable AEWR increases remains a top priority of Michigan Farm Bureau,” said MFB National Legislative Counsel John Kran. “We thank those who took the time to share their thoughts with members of Congress on the importance of this bill and we will continue to work with lawmakers to find a lasting solution to wage increases.”

While wage relief not being included in the omnibus is certainly disappointing for farmers, there are some notable wins for agriculture found in the final bill, including:

Growing Climate Solutions Act: This legislation authorizes USDA to oversee the registration of farm technical advisers and carbon-credit verification services. It was paired with the SUSTAINS Act, a bill to allow corporations and other private entities to contribute funding for conservation projects and authorize USDA to match the donations.

Agriculture Disaster Assistance: Provides $3.7 billion to extend USDA’s Emergency Relief Program to assist farmers and ranchers who endured losses due to certain natural disasters in 2022.

Pesticide Registration Improvement Act of 2022: Reauthorizes user-fee programs that fund EPA’s pesticide registration and review processes and requires EPA to comply with numerous registration process improvements in order to access additional funding levels. Requires manufacturers to phase-in bilingual labels on pesticides products over the next 8 years.

H-2B Cap Relief: Authorizes the Department of Homeland Security to issue additional H-2B visas beyond the annual statutory cap, as Congress has typically done in recent years.

Electronic Logging Devices: Prohibits the Department of Transportation from enforcing the electronic logging device mandate on haulers transporting livestock and insects.

PFAS Research: Provides $5 million for PFAS research specific to agriculture and support for producers.

Broadband: Provides $348 million for the ReConnect Program and directs the USDA to establish a scoring criterion that prioritizes serving the hardest to reach, unserved and underserved rural communities.

Agriculture Research: Provides $3.45 billion, $175 million above the fiscal year 2022 enacted level, for agriculture research programs, including the Agricultural Research Service and the National Institute of Food and Agriculture.

Livestock Mandatory Reporting: Extends the Livestock Mandatory Reporting Act through September 30, 2023.

John Kran headshot

John Kran

National Legislative Counsel
517-679-5336 [email protected]