Immigration Reform:Immigration Reform:Implications for Implications for FarmersFarmers

Craig J. RegelbruggeCo-chair, Agriculture Coalition for Immigration ReformVP, Govt Relations and ResearchAmerican Nursery & Landscape Assn.cregelbrugge@anla.org

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)