New Job Titles and Rules Increase Costs for Ag Employers
In 2025, U.S. farmers are facing another rise in labour costs due to a Department of Labor change known as the H-2A disaggregation rule. This policy reclassifies some seasonal farm jobs into higher-paying roles based on broader national wage data.
While most H-2A workers still fall under traditional categories, more are now labelled as truck drivers, construction labourers, and supervisors.
These job roles earn higher hourly wages in other industries, and the same rates now apply to farms — even if workers perform such tasks only occasionally.
For example, California’s reclassified construction labourers now make $11.83 more per hour than standard farmworkers, while Georgia supervisors earn $18.61 more. These rising wages have turned the Adverse Effect Wage Rate (AEWR) into a new minimum.
Even one reclassified worker can drastically raise payroll. A small farm with 10 workers may face a 30% hike in wage expenses, while larger farms with 70 staff may see increases above 10%. The national cost of farm labour is now expected to exceed $53 billion in 2025.
Wage adjustments are also more frequent. Farmers must now change wages twice yearly — once under FLS and again with OEWS. Many states have different rates, and in some cases like Colorado, national averages are used due to missing data.
“Fruit and vegetable producers spend up to 40% of their production expenses on labor alone to ensure that fresh produce is available across the country,” the article highlights.
As U.S. growers manage rising costs and complex rules, they face stiffer competition from countries with lower labour expenses and fewer regulations. This trend adds pressure to American farms struggling to remain profitable.