Alabama Farmers Applaud H-2A Wage Rule

MONTGOMERY, Ala., Oct. 2 - The Alabama Farmers Federation is praising an interim final rule by the Department of Labor (DOL) which makes the H-2A agricultural guest worker program more accessible and affordable for farmers who produce America's food and fiber.

"Farmers rely on legal guest workers to fill the gap when the local workforce can't meet their needs. Unfortunately, rule changes during the Biden Administration made the H-2A program increasingly costly and complicated," said Federation President Jimmy Parnell. "The rule announced today is another step toward fixing the H-2A program by applying common sense to wage calculations."

Farmers hiring H-2A guest workers are required to pay an Adverse Effect Wage Rate (AEWR) to ensure the local workforce is not negatively impacted. The rule updates AEWR methodology by:

• Using wage data reported for each U.S. state and territory by the DOL Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) survey. Under the Biden Administration, use of unreliable Farm Labor Survey data led to skyrocketing labor costs for farmers. In Alabama, the minimum hourly H-2A rate increased from $11.99 in 2021 to the current rate of $16.08, a 34% increase.
• Continuing a single AEWR for the five traditional occupational classifications. The AEWR will be divided into two skill-based categories to account for wage differentials arising from qualifications contained in the employer's job offer. Other occupational classifications will have corresponding AEWRs set from the OEWS.
• Classifying jobs for AEWR purposes based on the duties performed for most work days during the contract period.
• Addressing differences in compensation between U.S. workers and H-2A participants - who receive employer-provided housing at no cost - by implementing a standard adjustment factor to the AEWR for non-monetary compensation.

New AEWR wage requirements are effective immediately. In Alabama, 92% of all on-farm jobs are expected to fall in Skill Level I. Alabama rates from the DOL interim final rule are:

Alabama Wage Rates (Effective 10/2/2025)

Shelby County Farmers Federation President Phillip Hunter chairs the American Farm Bureau Federation Ag Labor Issue Advisory Committee. He said the AEWR rule ensures the H-2A program remains effective in addressing farm labor shortages.

"These changes are welcomed news for farmers who utilize the H-2A program," said Hunter, who also serves on the Federation's state board of directors. "By using reliable data, classifying jobs based on the majority of work done and taking into account employer-provided housing, the Trump Administration is restoring this program to its original mission - providing legal, temporary labor for American farms. This benefits consumers who rely on our products and the families of guest workers who receive financial support from the work done on U.S. farms."

Parnell echoed Hunter's praise for President Donald Trump and cabinet leaders.

"We appreciate the president, Secretary of Agriculture Brooke Rollins and DOL Secretary Lori Chavez-DeRemer for making this rule change a priority," Parnell said. "They understand strong and profitable farms are vital to America's national security."

Comments on the rule will be accepted for 60 days at https://www.regulations.gov.