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THE DIRT ON POLICY:

What Lawmakers Are Planting in Your Industry

Ashley Thomas, Specialty Crops Director

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ABOUT US

Who We Are

North Carolina Farm Bureau Federation was formed in 1936 as a non-profit general farm organization to serve farmers and provide a unified voice for the interests and needs of the farming community. Today, North Carolina Farm Bureau serves as an advocate for our members at the local, state, national, and international level - providing educational, economic, public affairs, marketing, and various other services to our members. Over the years, North Carolina Farm Bureau Federation has grown into the largest general farm organization in the state with more than 621,000 member families, yet we remain true to our grassroots heritage and steadfast in our mission to advocate

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FARM PROFIBILITY

Keeping family farms in business and farm land in production is tied back to the profitability of the farm.

1.

NC FARM ACT

DISASTER RELIEF

LABOR

REGULATIONS

4.

2.

3.

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2025

NC FARM ACT

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�2025 SESSION

SB 639: The NC Farm Act of 2025

Two controversial provisions: Raw Milk & Failure to Warn

Failure to Warn

Section 19: creates a legal presumption that pesticide manufacturers meet their duty to warn if their product has an EPA-approved label under FIFRA, making it much harder for plaintiffs to sue for undisclosed risks, requiring them to prove the EPA's scientific basis was flawed and the manufacturer knew it.

Less litigation = more crop protection tools for farmers

Each year session at the NC legislature we have a bill called the NC Farm Act, which includes multiple sections that are related to agriculture. This year two sections in this bill drew a lot of attention and caused it to stall.

Raw milk: Banned labeling raw milk as pet milk (aka the loophole). This was the first section to really start drawing in attention and raising flags

Section 19 of the Farm Act would create a legal presumption that an EPA-approved label on a pesticide is sufficient for claims that manufacturers failed to warn about the risks of their products on the label. The presumption can still be overcome if the plaintiff has sufficient evidence. So this means that it does not bar lawsuits or claims. This provision would help level the legal playing field so that frivolous lawsuits don’t continue to drive up the costs of the crop protection tools or jeopardize their availability for use.

So why do we need this?

We have seen over the past few years that despite having EPA-approved labels, pesticide manufacturers have faced significant legal challenges, which means increased cost and availability of certain pesticides in question. The economic burden of these lawsuits trickles down to you all the users.
You all rely crop protection tools to produce your crops each year. Section 19 of the North Carolina Farm Act of 2025 (SB 639) helps ensure you maintain access to these tools.
By honoring the EPA’s science-based decisions, we can reduce unwarranted lawsuits and protect you all from unnecessary legal battles.
It is important to note:
The bill doesn’t stop anyone from filing a lawsuit. It just says that if a product has a label approved by the EPA, that label is generally presumed to be sufficient when it comes to warning about risks. The presumption can still be overcome if a plaintiff has sufficient evidence.
Again, this matters a lot in our state, where you all rely on these crop protection tools to grow your crops.
With increased regulations and cost for you all happening each day, we want to make sure that your crop protection toolbox doesn’t become limited or any more expensive.

Again less litigation means more crop protection tools for you.

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�WHAT’S NEXT?

NC Farm Act:

Passed NC Senate
NC House passed a different version of the farm act, SB 401, NC Farm Act of 2025

NC Senate voted not to concur on the bill.
NC House version did NOT include the crop protection measure that NC Farm Bureau supported.

Bill now sits in a conference committee

Short session begins April 2026.
The 2026 primary election is Tuesday, March 3, 2026.

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DISASTER RELIEF

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�YEARS FULL OF DISASTERS

2024 Drought
Hurricane Helene
Tropical Storm Debbie
High Input Cost - Low Prices
Market Loss

HELP IS ON THE WAY…??

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�FEDERAL PROGRAMS

SUPPLEMENTAL DISASTER RELIEF PROGRAM (SDRP)

Over $16 Billion in funding

MARKETING ASSISTANCE FOR SPECIALTY CROPS (MASC)

$2.65 billion in total funding

USDA BLOCK GRANT

$221.2 Million Grant Agreement

The American Relief Act, 2025, provides disaster relief payments to producers who suffered revenue, quality or production losses to crops, trees, bushes, or vines due to qualifying disaster events in 2023 & 2024.

SUPPLEMENTAL DISASTER RELIEF PROGRAM (SDRP)

STAGE 1: Producers with indemnified losses.

Leverage existing Federal Crop Insurance or Noninsured Crop Disaster Assistance Program (NAP) data as the basis for calculating payments.

STAGE 2: Producers with uncovered losses, quality losses, and crop insurance or NAP coverage for 2023/2024 but experienced shallow losses and did not receive an indemnity.

Enrollment period: October 2025.

MASC helps specialty crop producers offset higher marketing costs related to:

Tenderness and perishability of specialty crops like fruits, vegetables, floriculture, nursery crops and herbs;

Specialized handling and transport equipment with temperature and humidity control;

Packaging to prevent damage;

Moving perishables to market quickly; and

Higher labor costs.

MASC covers the following commercially marketed specialty crops grown in the US:

Fruits (fresh, dried);

Vegetables (including dry edible beans and peas, mushrooms, and vegetable seed);

Tree nuts;

Nursery crops, Christmas trees, and floriculture;

Culinary and medicinal herbs and spices; and

Honey, hops, maple sap, tea, turfgrass, and grass seed.

$221.2 MILLION GRANT AGREEMENT

Covers ag losses in NC from Hurricane Helene (will be disaster declared counties)

Administered by NCDA & CS

Will cover eligible infrastructure and timber losses in addition to eligible market losses and eligible future year revenue losses

Still in negotiations with USDA on how it will be administered (since September)

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�FARM BRIDGE ASSISTANCE

FARM BRIDGE ASSISTANCE PROGRAM (FBA): $11 Billion

Row Crops
Payments expected end of February

ASSISTANCE FOR SPECIALTY CROPS FARMS (ASCF): $1 Billion

MARCH 13^th – Deadline to update acreage reports
Payment rates expected end of March
PEACHES ARE INCLUDED

FBA will help address market disruptions, elevated input costs, and persistent inflation for growers. The FBA Program applies formula to cover a portion of modeled losses during the 2025 crop year. This assistance provides producers with a bridge until the benefits of the One Big Beautiful Bill Act (OBBBA) are available

Assistance for Specialty Crop Farmers (ASCF) Program

USDA’s Farm Service Agency (FSA) is providing $1 billion through a one-time bridge payment for specialty crops, sugar, and commodities not covered through the previously announced Farm Bridge Assistance (FBA) program. These bridge payments are authorized under the Commodity Credit Corporation Charter Act. ASCF payments are based on reported 2025 planted acres.

Important Dates

March 13, 2026 (by 5 p.m. ET) – deadline to ensure 2025 crop acreage reports are factual and accurate for eligible ASCF crops.

End of March - commodity-specific payment rates will be released.

Eligible Commodities

ASCF-eligible specialty crops include: (A) Almond, Apple, Apricot, Aronia berry, Artichoke, Asparagus, Avocado (B) Banana, Bean (Snap or green; Lima; Dry edible), Beet (Table), Blackberry, Blueberry, Breadfruit, Broccoli (including Broccoli Raab), Brussels Sprouts (C) Cabbage (including Chinese), Cacao, Carrot, Cashew, Cauliflower, Celeriac, Celery, Cherimoya, Cherry, Chestnut (for Nuts), Chive, Citrus, Coconut, Coffee, Collards (including Kale), Cranberry, Cucumber, Currant (D) Date, Dry Edible Beans and Peas* (E) Edamame, Eggplant, Endive (F) Feijou, Fig, Filbert (Hazelnut) (G) Garlic, Gooseberry, Grape (including Raisin), Guava (H) Horseradish (K) Kiwi, Kohlrabi (L) Leek, Lettuce, Litchi (M) Macadamia, Mango, Melon (All Types), Mushroom (Cultivated), Mustard and Other Greens (N) Nectarine (O) Okra, Olive, Onion, Opuntia (P) Papaya, Parsley, Parsnip, Passion Fruit, Pea (Garden; English or Edible Pod; Dry edible), Peach, Pear, Pecan, Pepper, Persimmon, Pineapple, Pistachio, Plum (including Prune), Pomegranate, Potato, Pumpkin (Q) Quince (R) Radish (All Types), Raspberry, Rhubarb, Rutabaga (S) Salsify, Spinach, Squash (Summer and Winter), Strawberry, Suriname Cherry, Sweet Corn, Sweet Potato, Swiss Chard (T) Taro, Tomato (including Tomatillo), Turnip (W) Walnut, Watermelon

*Dry edible beans and peas covered by FBA will not be eligible for ASCF.

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�NC AG DISASTER CROP LOSS

AGRICULTURAL DISASTER CROP LOSS PROGRAM

NC lawmakers passed a series of bills that provided funding for the Agricultural Disaster Crop Loss Program, with the total allocated for ag disaster relief from all 2024 events.
Totaling $478 million
Some of the dollars were allocated for Helene-impacted counties
NCDA&CS began mailing checks to Ag Disaster Crop Loss program applicants at the end of August.

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LABOR

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�LABOR WINS

Farm Labor Survey Suspended
2023 Adverse Wage Rate Methodology Rule Vacated
Prefer Rate by States over Regional Wage Rates
Adjustment for nonwage costs

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�CURRENT

Rulemaking: Administrative
Legislation: Congressional
Litigation: Judiciary

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�ADMINISTRATIVE CHANGES

JUN 23^rd: DOL Announces Office of Immigration Policy
AUG 25^th: DOL Establishes Staggered Entry Flexibility
AUG 28^th: USDA Discontinues Farm Labor Survey
SEP 2^nd: DOL Temporarily Halts Labor Certification Fee Collection and Payment System
OCT 2^nd: USCIS Streamlines H-2A Filing Process

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�USDOL INTERIM FINAL RULE

Interim Final Rule

Published in the Federal Register on October 2^nd and became effective immediately.
Comments were accepted for 60 days
Over 800 comments were submitted.

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�AEWR INTERIM FINAL RULE (IFR)

FLS Discontinued: How will wages be calculated?
Wages derived from the Bureau of Labor Statistics’ Occupational Employment and Wages Statistics (OEWS) data.
Two different wage rates per state based on the skill level required for the JOB OFFERED:

Skill Level I: Entry Level
Skill Level II: Experienced Level

Primary Duties Test: employee must perform a job duty for more than 50% of their workdays.

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�IFR WAGE ADJUSTEMENTS

Each state receives a maximum hourly deduction for H-2A worker wages

Housing and Urban Development (HUD): fair market rent for a 4-bedroom house

AEWRS and housing adjustments are posted every July
NC WAGE ADJUSTMENT: $1.69

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�NC 2026 AEWR

SKILL LEVEL I: $11.09 (with adjustment)

Entry-level/less-experienced jobs
Includes workers performing standard ag tasks with minimal prior experience
Accounts for majority of field positions

SKILL LEVEL II: $14.70 (with adjustment)

Experience/higher-skilled
Includes workers with specialized skills, greater experience or responsibilities requiring additional training

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�AEWR INTERIM FINAL RULE

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�AEWR INTERIM FINAL RULE

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�NC 2026 AEWR

RATES WILL CHANGE IN JULY

Communicate with your H2A Workforce Agent/Provider regarding specific needs for your operation

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�AEWR INTERIM FINAL RULE

WHAT WE LIKE:

Immediate relief for most farms
Accounts for nonwage costs
Wages by state, rather than region

TOPICS FOR CONSIDERATION:

No additional yearly consistency
No survey is perfect
Lowering AEWRS can trigger prevailing or state minimum wages
Administrative complexity: How will this be implemented and practiced?

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�LEGISLATIVE OPPORTUNITES

Border security has been a priority – now urging Congress to prioritize visa reform, including H-2A.
“Secure the Border Act” passed the US House last Congress, then stalled in the Senate.

Urging them to reintroduce and include visa reform

Ag Chairman GT Thompson continues to work on a bill derived from the Committee’s Ag Labor Working Group report recommendations.
Introduce legislation that includes IFR positive steps

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�LEGISLATIVE OPPORTUNITES

Appropriations

Riders with unanimous ag support:

Two-year AEWR freeze
Amend seasonality definitions to allow year-round ag operations.

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�2025 IFR RULE LITIGATION

United Farm Workers

November 21^st: filed lawsuit challenging IFR
Filed in California federal district court
Asked the court to temporarily stay the rule while the lawsuit moves forward
February 5^th: deadline for parties to complete briefing process

THERE IS NO TIMELINE FOR THE COURT TO ACT

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MAKE AMERICA HEALTHY AGAIN?

WHEN POLICY IS SHAPED BY HOW NATURAL SOMETHING SOUNDS VS. HOW SAFE SOMETHING IS, WE HAVE OFFICIALLY LOST THE PLOT.

There are multiple shapes and forms that regulations come in when we look at farms. Whether its food safety for produce farmers or permitting that livestock farmers have to go through, if you can think of it, there is likely a regulation that is in place on your farm

However, one that we are unsure of as of late has been a very interesting topic in the media and one that you may have heard of, MAKE AMERICA HEALHTY AGAIN.

A tag line that I heard recently on this issue that I thought was perfect is above.

Healthy meals start with healthy farms, and all crops and commodities play a role in a well-balanced diet. Farmers share the goal of wanting to see improved health outcomes for our families and communities, and achieving those outcomes begins with ensuring that we have a secure and affordable food supply for all Americans. All Americans should enjoy choice and variety in the marketplace, and everyone deserves an open dialogue about the benefits and trade-offs tied to food choices. To keep up the work of growing a safe and sustainable food supply, farmers rely on science-based and carefully tested tools and practices

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�THE MAHA MOVEMENT

First MAHA Report: May 22^nd

Blamed agricultural practices for chronic diseases
Specifically named atrazine, glyphosate, and seed oils as culprits
DID say that we need to have more fruits & vegetables in our diets

Second MAHA Report: September 9^th

Approach turned to “studying the effect”
No mention of specific chemicals
Wanted to see improved diets

MAHA’s main focus has been how has the food system and our diets affecting diseases in our population. And the start of our food system (and unfortunately their blame game) is with you all the farmers.

So where did the MAHA movement start? I included a picture of this gentleman, that goes by RFK jr, and this all began when he was named the head of the Department of Health and Human Services. When they first started this initiative and even during the first report, agriculture became an easy target for them. This included blaming a lot of our modern practices that have years of studies behind it, for chronic dieases, focusing in on the use of chemcials, and specifically naming one of our top markets as a culprit. However, it failed to point out that part of the jump of chronic diseases, in the past ten years, is because they added more than 10 to the list (like vision, or fetal alcohol syndrome).

There were many crucial conversations that took place this summer with the administration that included NC and American Farm Bureau to help them understand what actually happens on our farms, and the science behind it all. And we can see role that took in the release of the second MAHA report. I would also like to note that in both reports, they noted that we need more fruits and vegetables in our diets, which is something we would like to see as well.

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�THE MAHA MOVEMENT

What could this mean for our farmers:

Loss of crop protection tools?
Reduced yields from organic-only mandates?
Increased operating costs?
Policy compliance burden?
FURTHER market disruptions?

FOOD SECURITY = NATIONAL SECURITY

However, the MAHA movement has already taken its effect. We saw that ourself here in NC in our NC farm act which I spoke to you all about at the beginning of this presentation. The push back on sound science was a direct correlation of the MAHA movement and we saw opposition from both R’s and D’s. NC wasn’t an isolated event; many states saw this all over the country (Texas being the most surprising). And when you start to get bills at the legislature to stop vaccinating lettuce…. Then you know again… we have officially lost the plot.

But if the conversation were to change back to demonizing American ag, what could that mean for you all as farmers? Loss of technology and crop protection? Reduced yields? MORE increased operating cost? More policy burdens and market disruptions? And what does this mean for our consumers? Simply put, if we are not able to grow our own food here in our country, it becomes a national security issue.

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�DOES BIGGER = BAD?

A common theme that has been circulating in ag recently is that big must mean bad. But why is that? We used to have one room schoolhouses with 10 kids, now we shove 30 kids in one room and 1000s of students into one school. We also use to have one a local country doctor that traveled around, and now you have amazing medical systems right here in our state like UNC and Duke. So if all are these are positive, then why has improvements and growing size wise in agriculture become an evil thing? Just like doctors and teachers, you all as farmers put the same care into the land, crops and animals as they do students and patients, if not sometimes more.

Whether farmers are working with 10 acres or 10,000 acres, we have to remind our local, state and federal representatives that you all rely on healthy soil and are committed to doing right by the land and community.

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Get Connected With Us

(336)-504-0083

www.ncfb.org

ashley.thomas@ncfb.org

5301 Glenwood Avenue

Raleigh, NC 27611

Ashley Thomas

Specialty Crops Director

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�COALITIONS: UNIFIED MESSAGE

FOIA Request: Multi-state ag labor coalition
NC Chamber- A Broken Baseline: The Flawed Economics Behind AEWR Calculations
Grow it Here: highlighting ag labor shortages
Ag Workforce Coalition: American Farm Bureau & Western Growers Co-Charis

NC Agriculture MUST continue supporting efforts to build consensus through organizations, associations, coalitions and farmers.

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FARM BILL

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�FARM BILL

Sets the policies and programs that govern agriculture and food production in the US, including support for farm income, conservation, trade, and nutrition assistance

Historically, a 5-year bill

Last Farm Bill was authorized in 2018

Bill expired in November 2023
Have been working off yearly extensions since then

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�FARM BILL

Food Security
Jobs
Conservation
Risk Management
Addressing Hunger

Now our last farm bill was projected to cost $428 billion, as you can from this graph the side, over 76% of those dollars actually are focused on nutrition instead of commodity programs.

But what does that mean for everyone who is not a farmer?

Food Security: America’s public investment in agriculture through farm bill programs helps secure our domestic food supply and keep our country strong while consumers get the benefits of high-quality, affordable food.

Jobs: The food and agriculture industry supports nearly 46.2 million U.S. jobs (that’s more than 14 percent of U.S. employment) and contributes more than $1 trillion to U.S. gross domestic product.

Conservation: The farm bill’s investment in ag research and conservation programs are critical to ensuring the productivity and sustainability in our farms and domestic food supply.

Risk Management: We all depend on the success of American agriculture so it’s important for America’s farmers and ranchers to be supported by strong farm programs as they face down weather disasters, high supply costs and inflationary pressures. Managing risk is critical to keep food on our tables.

Addressing Hunger: The farm bill includes nutrition programs intended to ensure the most vulnerable among us have access to healthy, affordable food.

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H.R. 1: ONE BIG BEAUTIFUL BILL

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�H.R. 1: ONE BIG BEAUTIFUL BILL

Reconciliation bill signed into law July 4^th, 2025
Included a lot of language that we normally have in the Farm Bill (but not everything)

Extends key commodity support programs: PLC, ARC, new base acres, payment limits
Updates to crop insurance: beginning farmers, SCO eligibility
Specialty Crop Research Funding
SNAP

So our last Farm Bill was authorized in 2018 meaning that it expired in November 2023 and we have been working off yearly extensions since then.

UNTIL, this summer when the OBBB passed and a lot of the provisions that are usually included in the farm bill were handled there (but not all).

This included updating reference prices for growers in their commodity support programs, new payment limits, some updates to crop insurance, research funding, and there were changes to SNAP.

Extends key commodity support programs: (which are more relevant to row crop farmers)

PLC: raises reference prices for major covered commodities by 10-21%.

Crop Year 2031: reference prices will grow by 0.5% annually on a compounded basis.
Effective reference price escalator adjusted from 85% to 88% of the Olympic average.
The bill raises statutory reference prices (price guarantees) for major covered commodities by 10-21%. Starting in crop year 2031, reference prices will grow by 0.5% annually on a compounded basis, with growth capped at 113% of the original value, reflecting long-term market trends while avoiding unchecked expansion. The effective reference price escalator for PLC was also adjusted from 85% to 88% of the Olympic average (an average that excludes the highest and lowest values from a set of years) of past prices, providing a modest increase in price support as market conditions warrant.

ARC: increases guarantee from 86% to 90%. Raises max payment from 10% to 12% of benchmark revenue
Up to 30 million new base acres: OBBB makes significant updates to base acres — the land tied to farm program payments. For the first time in over a decade, USDA will allow up to 30 million new base acres to be allocated to farms that have historically produced program crops but don’t currently have base acres. Eligibility is based on planting history from 2019–2023. Farmers won’t have to give up existing base to qualify, and allocations are proportionally tied to past plantings. These new base acres can make producers eligible for future PLC or ARC payments starting in 2026.

Payment limits increase from $125,000 to $155,000

H.R.1 maintains support for USDA research agencies and land-grant universities, providing targeted investments across agricultural research programs. For example, it allocates $175 million starting in fiscal year 2026 to the Specialty Crop Research Initiative, more than doubling current funding levels, to advance research in pest control, crop breeding and mechanization for high-value crops.

The, nut and nursery crop farmers) and the organic sector.

It increases funding for the Specialty Crop Block Grant Prografinal bill delivers tailored support for specialty crop producers (fruit, vegetablem, providing $85 million annually through 2025 and $100 million in 2026.

It also boosts the Plant Pest and Disease Management and Disaster Prevention Program from $75 million to $90 million in 2026 to help growers combat invasive threats like citrus greening and the spotted lanternfly.

For organic agriculture, the bill reauthorizes organic market data collection with $10 million through 2031, provides $5 million in 2026 to modernize systems for tracking organic imports, extends cost-share assistance for organic certification through 2031 and includes $5 million for USDA’s pesticide use survey in 2026.

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�TAXES & BUSINESS

Provisions Benefiting Farmers & Rural Businesses:

Permanency of 2017 Individual Tax Code Provisions
Estate Tax Relief for Family Farms

Enhanced Business Expensing and Depreciation:

Raises Section 179 small business expensing limits to $2.5 million
Permanently restores full bonus depreciation for capital investments
Clean Fuel Production Credit (Section 45Z)

Signed into law July, 4^TH 2025 �H.R.1 - One Big Beautiful Bill Act�Provisions Benefiting Farmers & Rural Businesses :

Permanency of 2017 Individual Tax Code Provisions:

Nearly 98% of farms operate as sole proprietorships, partnerships or S corporations and did not benefit from the permanent tax relief granted to corporations in 2017.

These provisions include expanded tax brackets with a lower maximum tax rate, increased standard deductions of $15,750 and child tax credits of $2,200 per child.

Estate Tax Relief for Family Farms: H.R.1 makes the estate tax exemption permanent at $15 million per individual (or $30 million per couple), indexed for inflation.

By locking in a higher, inflation-adjusted exemption, the bill helps ensure more family farms and small rural businesses can transition smoothly to the next generation without being forced to sell off land or assets to pay the IRS.

Enhanced Business Expensing and Depreciation:

Raises Section 179 small business expensing limits to $2.5 million (up from about $1.29 million), with a higher phase-out threshold of $4 million.

Permanently restores full bonus depreciation for capital investments, canceling the remaining phase-down of this expensing benefit.

Clean Fuel Production Credit (Section 45Z): H.R.1 delivers a significant win for agriculture-linked, domestic renewable fuels by extending and modifying the Clean Fuel Production Credit (45Z) through 2029.

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�SPECIALTY CROPS

Increased funding for Specialty Crop Block Grant Program

2025: $85 million
2026: $100 million

Extends organic cost share certification program through 2031
Boost to Plant Pests & Disease Management and Disaster Prevention Program

From $75 million to $90 million in 2026

$10 million to reauthorize organic market data collection through 2031
$5 million in 2026 to modernize systems for tracking organic imports
$5 million for USDA pesticide use survey in 2026

The final bill delivers tailored support for specialty crop producers (fruit, vegetable, nut and nursery crop farmers) and the organic sector.

It increases funding for the Specialty Crop Block Grant Program, providing $85 million annually through 2025 and $100 million in 2026.

It also boosts the Plant Pest and Disease Management and Disaster Prevention Program from $75 million to $90 million in 2026 to help growers combat invasive threats like citrus greening and the spotted lanternfly.

For organic agriculture, the bill reauthorizes organic market data collection with $10 million through 2031, provides $5 million in 2026 to modernize systems for tracking organic imports, extends cost-share assistance for organic certification through 2031 and includes $5 million for USDA’s pesticide use survey in 2026.

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�NUTRITION

Nutrition is over 80% of the Farm Bill
Reforms:

Updated work requirements
Modifying utility allowance rules
Continued funding for food banks
Thrifty Food Plan reevaluation
Admin cost-sharing with states

Expected savings: $185.9 Billion

Alongside farm programs, H.R.1 also reauthorizes nutrition assistance, chiefly the Supplemental Nutrition Assistance Program (SNAP), with reforms aimed at balancing continued support for vulnerable families with efforts to reduce fraud and program inefficiencies. The bill extends SNAP and related nutrition programs through 2031, while updating work requirements for able-bodied adults without dependents, modifying utility allowance rules, and introducing targeted program integrity reforms. Continued funding is also provided for food banks through The Emergency Food Assistance Program (TEFAP).

According to the Congressional Budget Office, these changes result in an estimated $186 billion in SNAP-related savings over the next decade. As illustrated in Figure 4, the bulk of these savings stem from adjustments to the Thrifty Food Plan reevaluation, work requirement modifications, utility allowance limits and administrative cost-sharing reforms. These savings played a central role in offsetting increased farm program outlays, enabling Congress to reinvest in the farm safety net, rural development and agricultural infrastructure without increasing total agricultural spending under the bill.

Even with $186 billion in projected savings, SNAP remains the largest USDA program, making up 72% of expected total spending over the next decade. As Figure 5 shows, nutrition outlays surged during the pandemic to meet urgent need but even after those temporary spikes, spending is projected to remain well above pre-pandemic levels. This underscores the lasting shift in baseline nutrition costs, despite reforms aimed at curbing growth.

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�NUTRITION

Nutrition is over 72% of the Farm Bill: Expected savings: $185.9 Billion

Alongside farm programs, H.R.1 also reauthorized nutrition assistance, MAINLY snap. The bill extended SNAP and related nutrition programs through 2031, with updates in the form of: Updated work requirements, Modifying utility allowance rules, Continued funding for food bank, Thrifty Food Plan reevaluation and Admin cost-sharing with states

According to the Congressional Budget Office, these changes result in $186 billion in SNAP-related savings over the next decade. These savings played a central role in offsetting increased farm program outlays, enabling Congress to reinvest in ag programs without raising the total cost of the farm bill.

In the graph, you can see in the orange and dark blue that even with $186 billion in projected savings, SNAP remains the largest USDA program, making up 72% of expected total spending over the next decade.

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�NUTRITION

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�NEXT STEPS: SKINNY FARM BILL

Will make policy and program changes not included in reconciliation

Address Proposition 12 and provisions related to animal health and management
Creates standing block grant authority for appropriated disaster funds
Precision agriculture cost-shares in conservation programs
Improve administration and modernize PL 566 (Small Watershed Program)
Require a Specialty Crop Report to increase American competitiveness
Reauthorize rural broadband programs
Continued funding for research and extension programs
Require the USDA to study impact of solar on farmland
Regulatory reform based on science and transparency in agriculture
Expand crop insurance for specialty crop producers

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LABOR

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�H2-A & AEWR

H-2A PROGRAM

Federal guest worker visa program that allows U.S. farms to hire temporary foreign agricultural workers when domestic labor is unavailable
Jobs are offered to U.S. citizens first. But, there isn’t a candidate pool for labor-intensive jobs
Employer must provide housing, transportation, and meet strict labor standards

AEWR (ADVERSE EFFECT WAGE RATE)

Minimum hourly wage employers must pay H-2A workers
Set annually by the U.S. Department of Labor
Intended to protect U.S. workers by preventing downward pressure on wages

BUT HAS IT PROTECTED LOCAL FARMS, JOBS & FOOD?

So what is the H2A program? This is a federal guest worker visa program that allows our farms to hire temporary foreign agr workers when domestic labor is not available. Jobs are offered to U.S. citizens first. But, there isn’t a candidate pool for labor-intensive jobs. It is important to note employers are required to cover, wages, transportation, visa fees and housing for their employees along with meeting strict labor standars. When it comes to paying these employees, the program is required to use the Adverse Effect Wage Rate, aka the AEWR.

The AEWR is essentially a minimum wage for seasonal H-2A farm employees. Employers must also pay domestic employees performing the same job at least the same amount as their seasonal H-2A employees, so the AEWR is essentially a minimum wage for the entire agriculture industry. The wage rate was designed to protect American workers’ wages from potentially negative impacts caused by the hiring of foreign labor, but this wage policy might actually do more harm than good. Although the AEWR is intended to protect domestic wages, these wage rates can have some pretty serious impacts on our farms

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�NC 2025 AEWR: $16.16

In fact, one of the biggest issues facing American farmers involves a consistently rising AEWR that did not have a clear end in sight.

the national average AEWR in 2025 is $17.72, up 5% over the last two years. Furthermore, the national average AEWR has risen at least 5% or more every year for the past three years, not including 2025. And, the AEWR has more than doubled since 2005.

As federal minimum wage rates have remained mostly the same, the agriculture industry has seen its federally mandated minimum wage (the AEWR) double in the last 19 years.

When you couple soaring input costs (equipment, materials, seed) with the rising cost of labor, it’s easy to see why the agriculture industry in America is struggling to keep up.

National average AEWR has more than doubled since 2006- think about for a business’s largest input cost could double over 20 years and the sustainability of that.

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�AEWR STUDY

A Broken Baseline: The Flawed Economics Behind AEWR Calculations

Cost of Living instead of Farm Labor Survey? 2022 - $12.48
$10.7 billion in additional domestic fruit & vegetable output
91,800 more full-time U.S. jobs in fresh produce
$7.6 billion in reduced imports
U.S. fresh fruit and vegetable consumption: 359 million pounds higher

Now how had this been calculated in the past? With a very flawed Farm Labor Survey, that caused confusion for growers when they had an opportunity to complete it. And adding on to the fact that not every grower was able to fill out the survey each year.

So here in NC a ag coalition, including NC Farm Bureau, sponsored a study to show what our fruit and vegetable industry would like if instead of using the farm labor survey to calculate the AEWR we used the cost living increase that the minimum wage and the rest of America uses.

First, the rate would be $12.48 (NC rate is $16.16 and the US average is $17.72)

10.7 billion more in additional domestic fruit & vegetable output

91,800 more full-time U.S. jobs in fresh produce

$7.6 billion in reduced imports (because we now are importing more fruits and vegetables than we produce here at home since it is cheaper to grow them in other countires)

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�HISTORIC LABOR CHANGES

2023 Adverse Wage Rate Methodology Rule Vacated
Farm Labor Survey Suspended
Interim Final Rule: revising AEWR methodology

I say all that, and thankfully we have seen historic changes on the labor front in the past few weeks. First with the Federal Court kicking out the 2023 Adverse Wage Rate Rule that tried to set higher rates for different jobs duties. Then a few weeks ago USDA announced that they were suspending the farm labor survey to calculate the AEWR. And finally last week they announced the Interim Final Rule, revising how the AEWR would be calculated.

NC is now looking at $12.78 an hour for entry level positions and $16.39/hour for experienced positions. And this includes a housing deduction if the employer provides housing (which all H2A employers have to provide)

This is a significant win for the h2a system, our farmers and the workers. It means we can produce here in the US while continuing to hire more people.

The Department of Labor (DOL) has released an interim final rule revising the methodology used to determine Adverse Effect Wage Rates (AEWR) for H-2A agricultural workers.

INTERIM FINAL RULE – AEWR METHODOLOGY�Under the new interim final rule, DOL will base AEWRs on state-level wage data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics (OEWS) survey, in place of the previously used USDA Farm Labor Survey.

The IFR will be focused around two skill-based wage categories within each occupational classification to account for differences in duties and qualifications.
DOL will also implement an adjustment factor to the AEWR to account for non-monetary compensation (housing) for H2A employers.

TWO SKILL-BASED WAGE CATEGORIES

Level 1(Entry-Level/Less Experienced): Typically includes workers performing standard agricultural tasks with minimal prior experience. This category accounts for the majority of field and livestock positions.
Level 2(Experienced/Higher Skilled): Includes workers with specialized skills, greater experience, or responsibilities requiring additional training or certification. Employers may offer higher wages to reflect these qualifications.

Skill-Based Wage Categories

Adverse Effect Wage Rate

Adjustment (Housing)

Level 1(Entry Level Skill)

$ 12.78 per hour

$ 1.69 per hour if housing provided

Level 2 (Higher Level Skill)

$ 16.39 per hour

$ 1.69 per hour if housing provided

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�AEWR STUDY

A Broken Baseline: The Flawed Economics Behind AEWR Calculations

Cost of Living instead of AEWR? 2022 - $12.48
$10.7 billion in additional domestic fruit & vegetable output
91,800 more full-time U.S. jobs in fresh produce
$7.6 billion in reduced imports
U.S. fresh fruit and vegetable consumption: 359 million pounds higher

QR CODE: https://ncchamber.com/a-broken-baseline-the-flawed-economics-behind-aewr-calculations/

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�FOIA REQUEST

NCFB joined a multi-state coalition to file a FOIA request with USDA.
Goal? To obtain detailed information on how USDA calculates the Adverse Effect Wage Rate.

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�HEAT STRESS

SUMMARY: develop and implement injury and illness plan (HIIPP)

Initial heat trigger: 80°F

Drinking water: “readily accessible” and “suitably cool”
Acclimatization phase-ins, worker communication

High heat trigger : 90°F

Mandatory breaks: 15 min every 2 hours
precautions for observation of symptoms, hazard alert communication

***FOR ALL OUTDOOR AND SOME INDOOR OCCUPATIONS***

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�HEAT STRESS