Farmers and ranchers gained a significant victory in labor policy after a federal court struck down a controversial disaggregation wage rule tied to the Department of Labor’s 2023 Adverse Effect Wage Rate (AEWR). The disaggregation provision had been criticized by farm groups for creating pay disparities and inflating labor costs by forcing employers to compensate workers for tasks they may not typically perform. In its ruling, the court sided with agricultural groups that argued the policy created unfair wage structures disconnected from the actual work being performed on farms.
American Farm Bureau Federation President Zippy Duvall praised the outcome, saying, “Farm Bureau is pleased that the Labor Department and a federal judge recognized that elements of the 2023 labor rule created an unfair wage structure that forced farmers to pay employees for jobs they may not usually perform.”
Duvall emphasized that farmers support fair wages but require policies that reflect the realities of agricultural work. Beyond this court decision, farm leaders continue to push for broader reforms to the H-2A guestworker program, which supplies the bulk of seasonal labor for U.S. farms.
“We encourage leaders to continue along the path of reforming a broken system by improving the H-2A program and stabilizing the workforce for our farm families,” Duvall added. With ongoing labor shortages and rising production costs, many in the agriculture community see this court ruling as a key step toward building a fairer, more sustainable framework for both workers and producers.
