Indy Standard

U.S. Senator Todd Young from Indiana, along with Senator Mike Crapo of Idaho and other Senate colleagues, has sent a letter to Senate leadership. The group is urging the inclusion of a freeze on the Adverse Effect Wage Rate (AEWR) in upcoming legislative actions.

"The increasing cost of labor for agriculture producers is unsustainable. According to the American Farm Bureau Federation, the national average AEWR will be $17.55 this year. That represents an increase of 5.6 percent from 2023, the third year in a row the AEWR increased by over five percent. In fact, the national average AEWR has more than doubled since 2005. This is compounded by the increased costs of inputs like energy and fertilizer, other guest worker expenses such as housing and transportation, and forthcoming expenses imposed by new regulations and fees," stated the senators.

They further emphasized, "If costs continue to increase as they have, the pressure put on America’s food producers will fundamentally shift the food production model that has allowed us to be agriculturally independent and secure. In order to support our farmers and ranchers and feed families across the country, we must act now."

The American Farm Bureau supports this initiative. John Walt Boatright, Director of Government Affairs at American Farm Bureau said, "Farmers are suffering through a worsening labor crisis, and something must be done to modernize an outdated farmworker system. While a permanent solution is needed, we appreciate these lawmakers who are working to deliver short-term relief so farmers can continue to grow the food America’s families rely on."

An increased AEWR took effect on January 1st this year with a rise of 5.6 percent nationally. Such increases pose challenges especially for small and family-operated farms already struggling due to high labor costs.

Besides Senators Young and Crapo, other signatories include Senators Jim Risch (Idaho), Kevin Cramer (N.D.), Pete Ricketts (Neb.), Tim Scott (S.C.), Roger Marshall (Kan.), Lisa Murkowski (Alaska), Mike Braun (Ind.), Cindy Hyde-Smith (Miss.), Thom Tillis (N.C.), Rick Scott (Fla.), Jerry Moran (Kan.), Ted Budd (N.C.), Mike Rounds (S.D.), and John Hoeven (N.D.).

The full text of their letter is available for public access.