The Trump administration is preparing another attempt to revise the formula for setting H-2A wages, potentially easing the cost burden for U.S. farms that rely on foreign labor. At the center of this effort is the elimination of the USDA's Farm Labor Survey (FLS), a data source long used by the Department of Labor to set state-by-state adverse effect wage rates (AEWR) for H-2A workers.

The issue is far from new. In late 2020, the previous Trump administration tried to overhaul the wage system, proposing that AEWR be based on the Occupational Employment and Wage Statistics (OEWS) for supervisors and a national index for others. That move was projected to save employers $148 million in 2023 and $158 million in 2024, but it was blocked in court after a lawsuit from the United Farm Workers (UFW).

Now, under Trump 2.0, the USDA has once again halted the FLS, citing its failure to account for data from farm labor contractors, who increasingly dominate the ag labor supply chain. In a September 3 Federal Register notice, USDA argued that the FLS is incomplete and outdated, as it collects data only from farm operators, not contractors.

Farm groups support the move, saying that the FLS led to artificial wage inflation, undermining U.S. farms' ability to compete with lower-cost imports. The National Council of Agricultural Employers (NCAE) has filed a petition urging the Department of Labor to abandon the FLS-based AEWR and instead certify that H-2A wages don't harm domestic workers, as required under the Immigration and Nationality Act.

NCAE President Michael Marsh stressed the importance of "reconnecting wage rates to the marketplace" and helping American farmers regain competitiveness in global markets. But labor advocates see the move differently.

UFW President Teresa Romero expressed deep concern, arguing that these changes are intended to drive down wages for U.S. farmworkers while expanding the H-2A program. Romero warned that UFW is closely monitoring developments and may again resort to litigation to protect domestic workers' interests.

Meanwhile, legal experts point out that this isn't the first time USDA has tried to cancel the FLS, and courts have historically forced its reinstatement. Philip Martin, an agricultural labor expert at UC Davis, noted that lawsuits are likely, and USDA could again be compelled to resume the survey.

What remains uncertain is how the Department of Labor will calculate AEWR for 2026. The agency has remained silent so far but has indicated that a proposed rulemaking is expected by February, setting the stage for another contentious battle over labor costs in agriculture.

Growers across the country are watching closely. The outcome could have sweeping implications not only for H-2A program costs and compliance, but also for the broader farm labor supply chain, which is already strained by immigration policy uncertainty, domestic labor shortages, and competitive pressure from foreign producers.