By Blake Jackson
This article discusses how wage trends shaped H-2A employment patterns in the US between 2020 and 2024. H-2A employment decisions are based on the Adverse Effect Wage Rate (AEWR), a fixed wage set by the Department of Labor (DOL) to protect local workers from unfair competition.
AEWRs are determined yearly using data from the USDA’s Farm Labor Survey. For non-range farm jobs like crops and nursery work, AEWRs are enforced at the state level and apply to all workers, regardless of nationality. In addition to wages, H-2A workers receive housing, transport, meal allowances, and fringe benefits, slightly adjusting their total compensation.
According to the analysis, wages for domestic crop, nursery, and greenhouse workers were consistently higher than H-2A wages during the period. However, when fringe benefits were included, adjusted H-2A wages surpassed livestock wages only in 2023 and 2024.
Regional differences were also noticeable. In field work, the South showed a positive wage gap (domestic wages higher than AEWR) only in 2022, while the West maintained a positive gap throughout. This suggests that Southern farms sometimes chose H-2A workers for reasons beyond cost, possibly valuing their productivity. In contrast, Western farms hired H-2A workers primarily to reduce wage expenses.
In livestock work, the South had slightly negative wage gaps early on but maintained positive gaps after 2021. Livestock farms tend to prefer hiring domestic workers because of their need for longer-term employees, skill development, and stable production cycles.
These trends reveal how regional and wage-based factors have influenced farm hiring choices. A future article will offer deeper insights into livestock farm labor practices.
Photo Credit: gettyimages-zoran-zeremski
Categories: Kentucky, Business