immigration reform: implications for farmers craig j. regelbrugge co-chair, agriculture coalition...
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Immigration Reform:Immigration Reform:Implications for Implications for FarmersFarmers
Craig J. RegelbruggeCo-chair, Agriculture Coalition for Immigration ReformVP, Govt Relations and ResearchAmerican Nursery & Landscape [email protected]
ACIRACIRAd-hoc coalition
comprised of over 300 organizations that represent labor-intensive crop and livestock producers
Employer side of the AgJOBS coalition
Some active ACIR Some active ACIR participantsparticipants
AMERICAN AGRI-WOMEN AMERICAN FROZEN FOODS
INSTITUTE AMERICAN HORSE COUNCIL AMERICAN MUSHROOM INSTITUTE AMERICAN NURSERY &
LANDSCAPE ASSN AMERICAN SHEEP INDUSTRY
ASSOCIATION DAIRY FARMERS OF AMERICA FARM CREDIT EAST NATIONAL ASSOCIATION OF STATE
DEPARTMENTS OF AGRICULTURE NATIONAL CATTLEMEN’S BEEF
ASSOCIATION NATIONAL CHRISTMAS TREE
ASSOCIATION NATIONAL COUNCIL OF
AGRICULTURAL EMPLOYERS NATIONAL COUNCIL OF FARMER
COOPS NATIONAL FARMERS UNION NATIONAL GREENHOUSE
MANUFACTURERS ASSOCIATION
NATIONAL MILK PRODUCERS FEDERATION
NATIONAL POTATO COUNCIL NEW ENGLAND APPLE COUNCIL NISEI FARMERS LEAGUE NORTH AMERICAN
HORTICULTURAL SUPPLY ASSOCIATION
NORTHWEST HORTICULTURAL COUNCIL
PRODUCE MARKETING ASSOCIATION
SOCIETY OF AMERICAN FLORISTS TURFGRASS PRODUCERS
INTERNATIONAL UNITED EGG PRODUCERS UNITED FRESH PRODUCE
ASSOCIATION U.S. APPLE ASSOCIATION WESTERN GROWERS WESTERN RANGE ASSOCIATION WINEAMERICA WINE INSTITUTE
Immigration: Immigration: The Perfect The Perfect StormStorm
Down on the Farm…Down on the Farm…Most workers lack proper legal status
◦50 to 75% are unauthorized◦2 to 4% come via only legal program, H-2A◦Recession isn’t changing the fundamentals◦“Culture of Agriculture”
Immigration enforcement continues◦ICE I-9 audits happening at record pace◦State, local laws: “Death by 50 (or more)
cuts”
Beware the Ides of March…
New H-2A RegulationsNew H-2A RegulationsA program that is headed for
failureCurrent users face wage and
liability increases, more recruitment costs, more bureaucratic processes and greater DOL, SWA discretion
Some are abandoning programLitigation: tried, failed
Best Way Out?Best Way Out?An Act of Congress….literallyStrategic Question:
¿Can we “harness the destructive energy of the
perfect storm” to good effect for the future of U.S.
agriculture and horticulture?
AgJOBS (S.1038, AgJOBS (S.1038, H.R.2414)H.R.2414)Negotiated compromise
reflecting years of careful negotiations
Extensive H-2A program reform, and earned legal status for experienced farmworkers
Broad bipartisan supportBest hope for ag employers going
forward
Legislative ScenariosLegislative Scenarios‘Comprehensive’ happens this
year…◦A bridge too far
A ‘down payment’ bill moves this year…
Nothing happens this year…
Comprehensive…Comprehensive…If comprehensive bill comes
together, it will feature reforms of AgJOBS
Time and momentum running outSlim shot at a bill moving in a
“lame duck” session
Narrower “Down Narrower “Down Payment” BillPayment” BillAgJOBS could be at heart of a
smaller bill that seeks step forward
Legislative action could happen later in June, July, or possibly lame duck session
Agriculture has essentially made its case, and AgJOBS has prospect of bipartisan support
Nothing HappensNothing HappensIf nothing happens this year, be prepared to live with the Obama Administration’s H-2A rule for the foreseeable future
2011 and 2012 look bleak. Don’t bet the farm on an “AgJOBS renegotiation” bearing fruit
Next shot at reform may not materialize until 2013 or 2015
AgJOBS and Farm WagesAgJOBS and Farm WagesAgJOBS as written would mean
real and lasting wage relief for H-2A user growers
An alternative wage formula for AgJOBS has been discussed, and can be achieved if ag interests were to unify and bring new political support to the bill
If AgJOBS Had Passed in If AgJOBS Had Passed in 20072007YEAR NC AEWR* AGJOBS* SAVINGS/HR
2010 9.34 7.53 1.81 2011 9.69 8.78 0.91 2012 10.06 9.01 1.05 2013 10.44 9.24 1.20 2014 10.84 9.48 1.36 2015 11.25 9.73 1.52
* AEWR based on long-term average annual increase of 3.8%. AgJOBS wage based on long-term average annual increase in CPI of 2.6%
Another AlternativeAnother AlternativeDisaggregate USDA-NASS Farm
Labor Survey results by state, type of work◦Crop worker; livestock worker;
equipment operator; first-line supervisor; grader and sorter
Estimated current wage under this system would be roughly $8.50
Why the “Minimum Wage +” Why the “Minimum Wage +” Dog Won’t HuntDog Won’t Hunt
The Sad TruthThe Sad TruthWe cannot trust either political
party◦Democrats may opt to hold agriculture
hostage rather than push to solve the problem now
◦Republicans will promise us a better deal…if we just wait. Yet even if November’s elections bring a political tsunami, the reality remains: President Obama would veto an H-2A bill that is staunchly opposed by organized labor
What This All Means for What This All Means for Farmers…Farmers…Those using H-2A either unify behind
AgJOBS, or face at least several more years of the worsening status quo
Those not using H-2A are one I-9 audit away from chaos
Failure to achieve reform is leading to:◦Decisions to scale back, switch crops, sell
out◦Next generation leaves farming◦More imports◦Lost US jobs in upstream/downstream
economy (3:1)