Michigan Lawmakers Leading Charge to Address Skyrocketing AEWR Costs

Monday, May 22, 2023

A bill that aims to give farmers much-needed relief from skyrocketing labor costs for seasonal farmworkers is receiving bipartisan support from Michigan lawmakers.

Introduced by Michigan Congressman Dan Kildee, the Farm Operations Support Act would temporarily pause the Adverse Effect Wage Rate (AEWR) until the end of 2023 to give Congress more time to address the issue. The bill is the House version of a measure that was previously introduced in the Senate and would require that the AEWR that was in effect on Dec. 1, 2022, remain the AEWR through Dec. 31, 2023.

Michigan’s AEWR rose 12.8% since last year to $17.34 an hour — not including the costs of housing and transportation farmers provide workers — and the Department of Labor recently released new rules that will raise costs even higher for certain occupations on farm. According to AFBF, labor costs already account for nearly 40% of the total production costs for some farms.

“My bipartisan bill will provide relief to Michigan farmers as Congress works on a long-term, sustainable solution for our agricultural community,” Kildee said.

“I will continue to work with Republicans and Democrats to support our agricultural community and farmers in Michigan.”

Seven of the bill’s original 12 cosponsors are from Michigan, including Reps. Bergman, Huizenga, McClain, Moolenaar, Scholten and Slotkin.

According to the U.S. Department of Agriculture, more than more than half of the fresh fruit and a third of the fresh vegetables consumed in America are produced overseas. Failing to address unsustainable AEWR increases has made it increasingly difficult to compete with foreign countries and if our farmers exit the industry, it ultimately becomes a national security issue, according to John Kran, MFB national legislative counsel. 

“If Michigan farmers are to remain competitive with foreign competitors, we need a predictable and stable wage rate for the H-2A visa program,” Kran said.

“This legislation is a common-sense approach to provide a pause and allow Congress time to develop a long-term solution for our farming families. We applaud Congressman Kildee and his colleagues for their leadership on this critical issue.”

Source: michiganfarmnews.com