The Adverse Effect Wage Rate is a federal policy requiring growers who use certain temporary seasonal guestworkers to pay wages that are 80% higher than Michigan’s minimum wage, and those wages go up annually. Farmers say labor costs can be as much as 55% of their total expenses.
“Essentially it costs us $100,000 more a year to pick our crop than it did five years ago.”
Noah Roth of Railside and Roth Orchards in Lowell and Belding says the wage levels have made family farms unprofitable. Last year his family ripped out 30 acres.
“I’ve got ten more on the chopping block for this year. It doesn’t make sense. If it’s not making high yields or high dollar fruit like Honeycrisps or whatnot, its gone. It’s just not worth doing it anymore.”
Farmers say labor costs can be as much as 55% of their total expenses which include wages, fees, housing and transportation for workers.
The coalition met with U. S Congressman John Moolenaar of Michigan who is proposing a freeze on the wage increase requirement so Congress can study the issue. Jamie Clover Adams is the Executive Director for the Michigan Asparagus Advisory Board and says if the high costs continue, Michigan’s $6 billion specialty crop industry - with its 40,000 jobs - is in jeopardy.
“If we don’t pause it, if we keep going the way we’re going, we’re going to lose – we’re already losing growers. I’ve lost 50 growers in the last 6 years.”
The coalition created a website with more information at protectourproduce.com.
