News Summary
Alabama agriculture leaders celebrate a new federal rule that reduces wage requirements for the H-2A guest worker program. This change addresses rising labor costs and helps local farmers by allowing for more affordable labor. The Alabama Farmers Federation advocated for this adjustment, which aims to sustain agricultural operations and support employment levels among local workers, paving the way for a more stable labor market as farmers seek to manage financial pressures.
Alabama
Alabama agriculture leaders are celebrating a new federal rule that has significantly reduced wage requirements for the H-2A guest worker program, a change that they believe will ease financial pressures on local farmers. This modification comes as the agriculture sector grapples with rising labor costs and difficulties in sourcing local workers.
The Alabama Farmers Federation has actively advocated for adjustments to the H-2A program, which allows American farmers to bring in foreign labor to fill agricultural jobs when local workers are unavailable. The previous minimum hourly wage mandated for H-2A workers had increased by 34% to $16.08 this year, leading many farmers to express concerns about the sustainability of their businesses.
One of the voices representing these concerns is Phillip Hunter, a tree nursery owner and president of the Shelby County Farmers Federation. He mentioned that the high wage rates were making it increasingly hard for farmers to remain competitive. Hunter Trees, which began using the H-2A program in 2022 due to a labor shortage exacerbated by the COVID-19 pandemic, found it challenging to attract local employees for demanding work conditions, which often vary due to weather.
The newly enacted interim Adverse Effect Wage Rate (AEWR) rule sets the entry-level wages for H-2A workers at $10.05 per hour after housing deductions, while more skilled positions are set at $13.75. This is a significant drop from the previous rates, making it more feasible for local growers to hire the needed workforce. Employers using the H-2A program are required to pay travel costs and provide housing for their workers, which is taken into account with the new housing deduction.
Currently, Alabama has approximately 145 employers participating in the H-2A program, employing a total of 1,820 guest workers. The new rules mean that contracts signed before the change will retain the higher wage levels, but future contracts will be adjusted to reflect the reduced rates.
According to Hunter, guest workers are crucial not only for the operations of his nursery but also for maintaining employment levels among local workers. Hunter Trees regularly employs about 20 to 25 local residents, a number that could be jeopardized without sufficient labor. The program allows for guest workers to be employed for a maximum of 10 months, and many of them have returned for the last three seasons.
Jimmy Parnell, president of the Alabama Farmers Federation, emphasized the importance of legal guest workers in meeting labor shortages that arise when local labor fails to meet demand. He noted that the new rule serves as a remedy to what had become a costly and complex H-2A program under the current administration.
To further support local growers, Blake Thaxton, the executive director of the Alabama Fruit and Vegetable Association, indicated plans to advocate for limits on annual wage increases under the new wage formula to better help employers budget their costs effectively.
Over the next 60 days, public comments will be accepted regarding the new rule, presenting an opportunity for stakeholders to engage in the regulatory process. With this new wage structure in place, many Alabama farmers hope that the labor market will stabilize, allowing them to continue their operations without being overly burdened by escalating wage costs.
Deeper Dive: News & Info About This Topic
- Alabama Daily News
- Alabama Reflector
- 1819 News
- Al.com
- Kentucky Lantern
- Wikipedia: H-2A Visa
- Google Search: H-2A guest worker program
- Google Scholar: H-2A visa impact on agriculture
- Encyclopedia Britannica: H-2A visa
- Google News: Alabama farmers H-2A program
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
