The U.S. Department of Labor has unveiled a sweeping change to how wages are determined for foreign agricultural guestworkers under the H-2A program, a move officials say could save farmers and ranchers more than $2 billion annually in labor costs. The interim final rule, published October 2, replaces the long-criticized Farm Labor Survey with data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics program. By shifting to this methodology, the Department aims to better align H-2A wages with comparable occupations in the broader labor market.
For farmers, particularly in high-cost states like Michigan, the change offers long-awaited relief. Congressman John Moolenaar noted that Michigan’s Adverse Effect Wage Rate has climbed more than 61 percent since 2014, reaching $18.15 an hour, not including the cost of housing, transportation, and other mandatory expenses.
A central feature of the new rule is the recognition of housing and other non-monetary benefits as part of total compensation. This adjustment, coupled with a tiered wage structure that takes skill level into account, is expected to slow the rapid wage increases that have placed U.S. farmers at a competitive disadvantage globally. In states such as Washington, Oregon, and California, where H-2A wages have effectively set the floor for the broader farm workforce, employers anticipate immediate cost reductions.
Reactions across the agricultural sector have been largely positive. Michael Marsh, president of the National Council of Agricultural Employers, applauded the rule as a long-overdue correction to an outdated system.
The International Fresh Produce Association echoed that sentiment, calling it a historic step toward fairness and predictability in farm labor policy.
The American Farm Bureau Federation also expressed support, noting that labor costs can make up nearly half of farm production expenses and that many family farms rely on the H-2A program to survive.
“Farm Bureau thanks the Trump administration, Secretary Lori Chavez-DeRemer and Secretary Brooke Rollins for advocating for solutions to a broken system,” said AFBF President Zippy Duvall. “For many farmers, prices for the products they raise are low while production expenses are at record highs, so a fair wage rate is essential. In most states, the new rates will help farmers afford to get crops from the fields to the tables of America’s families.
“This new rule holds promise for many farm families who would be out of business if not for the H-2A program. We look forward to working with the administration to ensure more transparency, predictability and clarity as it implements the rule, and we remain committed to working with Congress for more lasting reforms that provide mutual benefit for workers and farmers while ensuring both can continue to stock America’s pantries.”
While the Department of Labor framed the rule as essential to protecting the nation’s food supply, advocates continue to stress that more needs to be done. Farm groups and policymakers are urging Congress to pursue comprehensive reform that not only stabilizes wage rates but also provides foreign farmworkers with clearer legal pathways. For now, the new rule signals a major shift in U.S. agricultural labor policy, one that could reshape how farms balance cost, labor supply, and competitiveness in a challenging global marketplace.
