On Wednesday, the Senate voted 53-43 to pass a resolution that would overturn the U.S. Environmental Protection Agency’s new Waters of the United States rule. Senators Manchin (WV), Cortez Masto (NV), Rosen (NV), and Tester (MT) joined Republicans in voting in the affirmative to overturn the rule. The House previously voted on March 9, 2023, to overturn the measure. The resolution now moves to the White House where the President is expected to veto the measure. To override the veto, both chambers would need to obtain a 2/3 vote.

Yesterday, the Department of Labor’s final rule relating to methodology changes within the Adverse Effect Wage Rate (AEWR) went into effect. The AEWR is what typically decides the wage rates for H-2A visa holders, of which over 325,000 were employed across the US in 2022. Despite being listed as “economically insignificant,” it is the belief of most agricultural groups that the changes could be harmful for employers already struggling with regularly inflating wages. This is certainly the view for the California Farm Bureau, which has long warned about the inherent brokenness within the H-2A system already. In California, we’ve seen the AEWR climb from $13.92 an hour in 2019 to a nationwide-leading $18.65 in 2023—a 34% increase.

The new rule risks increasing these totals even more, as workers will now be eligible to be paid higher wages for duties that fall outside of standard labor activities. For instance, if an H-2A worker helps drive a van of other workers to the jobsite each morning and evening, they would now fall under a “chauffeur” class, which requires a higher wage rate, even if this is only a small portion of their duties. Depending on the class identified, employers could now be on the hook for up to a 20% increase on H-2A wages. This comes per an American Farm Bureau Federation Market Intel piece, which highlights the significant impacts that could arise as a result of this rule. It would be a stark contrast to the estimates provided by the DOL on potential cost increases to agricultural employers.

Legal efforts have been developing in recent weeks to challenge the rule, possibly providing temporary relief as it makes its way through the court system. CAFB will provide members with more details on these developments as they arise. We have long advocated for legislation that would not just temporarily pause AEWR increases, but fundamentally change the way in which these flawed rates are calculated. For more information on AFBF’s latest research, click the button below.

USDA Secretary Tom Vilsack had a busy week as he appeared before three different Congressional committees. In consecutive days he spoke before the House Agriculture Committee and then both House and Senate Agriculture Appropriations subcommittees. House Ag was particularly contentious at times as Republicans sparred with the Secretary over what they perceive to be an overly pricey and generous food assistance programs. This has become a more pointed line of criticism amongst Republicans in the new Congress. With a recent CBO estimate of nearly $1.5 trillion in outlays for Farm Bill-supported programs—and roughly 80% of the Farm Bill consisting of food assistance programs such as SNAP and WIC—the legislation’s price tag has seen renewed scrutiny.

Democrats defended many of the nutrition programs, citing how these funds often benefit farmers while feeding those most in need. Given the need to get at least 60 votes in the Senate in order to have a chance of passing, the Farm Bill will continue to require bipartisan support, meaning neither side is likely to successfully implement some of their more contentious priorities. Despite the relatively full week for the Secretary, not much in the way of new developments were revealed during the hearings. As both parties’ primary objectives for the Farm Bill become a bit clearer, we will be sure to update members.

This week, members from all over the state joined together in Sacramento for part of California Farm Bureau’s Capitol Ag Conference. The event combined Commodity Caucus meetings with visits to the Capitol to meet with state officials. The conversations covered everything from water and disaster impacts to challenges arising from altered waterfowl migratory patterns. As part of CAFB’s internal policy development process, the Caucus meetings represent the beginning stages of our regular review process to see which areas need addressing from a staff, Board, and policy book perspective. In addition, many invited speakers appeared, representing several different commodity groups and agencies, including Lieutenant Governor Eleni Kounalakis.

A reminder that USDA has a number of technical and financial resources available to help farmers and livestock producers recover from recent flooding throughout the state. Impacted producers should contact their local USDA Service Center to report losses, learn more about program options available to assist in their recovery from crop, land, infrastructure and livestock and damages. As flood impacts are expected to last for months in some counties, producers should keep in contact with their local USDA Service Center as they assess operational impacts. A summary of available assistance can be viewed here.