Senator John Hoeven, alongside Senator Mike Crapo and 14 other senators, has sent a letter to Senate leadership. The group is urging for a freeze on the Adverse Effect Wage Rate (AEWR) to be included in upcoming legislation. The AEWR saw an increase starting January 1, 2024, with a national rise of 5.6% and a specific increase of 6% in North Dakota. According to the senators, these increases are unsustainable for small and family-operated farms already struggling with labor costs.
“The increasing cost of labor for agriculture producers is unsustainable,” stated the senators. “According to the American Farm Bureau Federation, the national average AEWR will be $17.55 this year.” They noted that this marks the third consecutive year with an over five percent increase in AEWR.
The letter highlighted concerns that continued cost increases could disrupt America’s food production model and threaten agricultural independence and security. “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,” they wrote.
The signatories of the letter include Senators Jim Risch, Kevin Cramer, Pete Ricketts, Tim Scott, Roger Marshall, Lisa Murkowski, Mike Braun, Cindy Hyde-Smith, Thom Tillis, Rick Scott, Jerry Moran, Todd Young, Ted Budd, and Mike Rounds.
The full text of their communication emphasizes worries about further anticipated increases in Occupational Employment and Wage Statistics (OEWS) AEWR later this year. It stresses potential threats not only to domestic agricultural heritage but also to national food supply security due to these rising costs.
Constituents reportedly face difficult decisions regarding crop harvesting affordability due to labor expenses. Some smaller operations may even cease entirely due to these financial pressures. The senators argue for immediate action in support of farmers and ranchers nationwide.
