Growing Wage Rates Stand Out in Latest Farm Labor Survey [Infographics]

Posted by Paul Rusnak|December 1, 2022

While many were busy with the recent Thanksgiving holiday, USDA released its latest Farm Labor Survey. The semi-annual report includes quarterly estimates of number of hired workers, average hours worked per worker, and average hourly wage rates. A major takeaway from the latest iteration indicates continuous growth in H-2A wage rates amid a market already feeling the weight from increased operating costs.

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According to the report, the 2022 all hired worker annual average gross wage rate was $17.56 per hour, up 7% from the 2021 annual average gross wage rate. The 2022 field worker annual average gross wage rate was $16.77 per hour, up 6% from the 2021 annual average. The 2022 livestock worker annual average gross wage rate was $16.29 per hour. The 2022 annual average combined gross wage for field and livestock workers was $16.62, up 7% from the 2021 annual average of $15.56 per hour.

American Farm Bureau Federation provided its own analysis of the report. A portion of the organization’s examination reads as follows: “Of utmost importance to users of the H-2A visa program, the field and livestock workers’ combined wage rate for 2022 contained in the FLR becomes the Adverse Effect Wage Rate utilized in the H-2A program in 2023. So, while the rates don’t become official until they are released by the Department of Labor in the Federal Register, usually around mid-December, the rates published in the FR are typically unchanged from what is published in the FLR. Given the overall tightness in the U.S. labor market, few would be surprised that the fiscal year 2022 U.S. average field and livestock workers’ combined wage rate rose, but the 6.8% fiscal year-over-fiscal year increase outpaced the 5.3% fiscal year-over-fiscal year growth in seasonally adjusted average hourly earnings of all private employees and will continue to put significant pressure on the bottom lines of farmers with significant labor needs.”

Statistics show every farm labor region and state experienced a higher average wage rate in 2022 and thus will have a higher AEWR in 2023. Florida had the largest percentage increase at 15.5%. The Lake region (Michigan, Minnesota, and Wisconsin) had the largest increase in dollar terms – $1.97 per hour. In 2022, California had the highest overall wage rate at $18.65 per hour.

Scroll through the slideshow above to see the rates and increases broken down by state/region.