By Andi Anderson
Illinois farmers are witnessing a significant surge in the employment of H-2A workers, coinciding with escalating wage rates, placing strains on agricultural businesses.
Recent reports from the USDA Farm Labor Report and the Department of Labor underscore the growing reliance on the H-2A program and its implications for wage rates in the upcoming year.
USDA's National Agricultural Statistics Service highlighted a substantial increase in average wage rates for field and livestock workers, setting the Adverse Effect Wage Rate (AEWR) for 2024 in the H-2A program. Illinois, in particular, will experience a 6% rise in AEWR to $18.18, signifying a notable $1.01 increase from 2023.
The American Farm Bureau Federation's analysis indicates that farmers intending to utilize H-2A workers in 2024 will face up to a 7% wage increase. This uptick in wage rates mirrors the nationwide trend, with the national average AEWR reaching a record $17.55.
"The tightening labor market is impacting various industries," states AFBF senior economist Veronica Nigh, stressing the H-2A program's growing significance in staffing seasonal on-farm jobs, especially with increasing wage rates.
Amid these developments, the Department of Labor's data unveiled a 2% rise in H-2A positions, totaling 378,513, marking a slower rate of increase but significantly higher than previous years.
For Illinois, the fiscal year 2023 saw a 9% year-over-year increase in certified positions, signifying the state's rising dependence on the H-2A workforce.
AFBF President Zippy Duvall highlights the pressing need for an effective resolution for the H-2A program and AEWR, recognizing the challenges faced by farm families in managing escalating labor costs.
The disclosure of H-2A data for all states underscores the widespread usage of the program nationwide, with a substantial increase in certified positions in over 10 states and territories in 2023.
The evolving landscape of H-2A employment and wage hikes poses significant challenges for Illinois farmers, necessitating thoughtful solutions for sustaining agricultural operations amid increasing labor costs.
Photo Credit: gettyimages-eugenesergeev
Categories: Illinois, Business