Immigration Reform: Implications for Farmers

Craig J. Regelbrugge Co-chair, Agriculture Coalition for Immigration Reform VP, Govt Relations and Research American Nursery & Landscape Assn.

[email protected]

ACIR

  Ad-hoc coalition comprised of over 300 organizations that represent labor intensive crop and livestock producers Employer side of the AgJOBS coalition

Some active ACIR participants

               A MERICAN A GRI -W OMEN A MERICAN A MERICAN F H ROZEN ORSE F OODS C OUNCIL I NSTITUTE A MERICAN A MERICAN M USHROOM N URSERY & L I NSTITUTE ANDSCAPE A SSN A MERICAN D AIRY F S HEEP ARMERS OF I NDUSTRY A MERICA A SSOCIATION F ARM C REDIT E AST N ATIONAL A SSOCIATION OF S TATE D EPARTMENTS OF A GRICULTURE N ATIONAL N ATIONAL C ATTLEMEN ’ S B EEF A SSOCIATION C HRISTMAS T REE A SSOCIATION N ATIONAL E MPLOYERS N ATIONAL C OUNCIL OF A GRICULTURAL C OUNCIL OF F ARMER C OOPS N ATIONAL N ATIONAL F G ARMERS A SSOCIATION U NION REENHOUSE M ANUFACTURERS                 N ATIONAL N ATIONAL N EW M P ILK P RODUCERS OTATO C E NGLAND A PPLE OUNCIL C F EDERATION OUNCIL N N ISEI F ORTH ARMERS A A SSOCIATION L EAGUE MERICAN H ORTICULTURAL N ORTHWEST H ORTICULTURAL S UPPLY C OUNCIL P RODUCE M ARKETING A SSOCIATION S OCIETY OF A MERICAN T URFGRASS P RODUCERS F LORISTS I NTERNATIONAL U NITED U NITED E GG F RESH P RODUCERS P RODUCE A SSOCIATION U.S. A PPLE A SSOCIATION W ESTERN W ESTERN G ROWERS R ANGE A SSOCIATION W INEAMERICA W INE I NSTITUTE

Immigration: The Perfect Storm

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 Regulations

    A program that is headed for failure Current users face wage and liability increases, more recruitment costs, more bureaucratic processes and greater DOL, SWA discretion Some are abandoning program Litigation: tried, failed

Best Way Out?

  An Act of Congress….literally

Strategic 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, H.R.2414)

    Negotiated compromise reflecting years of careful negotiations Extensive H-2A program reform, and earned legal status for experienced farmworkers Broad bipartisan support Best hope for ag employers going forward

Legislative Scenarios

   ‘Comprehensive’ happens this year… ◦ A bridge too far A ‘down payment’ bill moves this year… Nothing happens this year…

Comprehensive…

   If comprehensive bill comes together, it will feature reforms of AgJOBS Time and momentum running out Slim shot at a bill moving in a “lame duck” session

Narrower “Down Payment” Bill

   AgJOBS 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 Happens

   If 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 Wages

  AgJOBS 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 2007

YEAR NC AEWR* AGJOBS* SAVINGS/HR      

2010

2011 2012 2013 2014 2015

9.34

9.69

10.06

10.44

10.84

11.25

7.53

8.78

9.01

9.24

9.48

9.73

1.81

0.91

1.05

1.20

1.36

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 Alternative

  Disaggregate 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 +” Dog Won’t Hunt

The Sad Truth

 We 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 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)