Key Takeaways from the NCAE Ag Forum: What H-2A Employers Need to Know

The NCAE Ag Forum (Ag Employer Labor Forum) was held last December 3 – 5 in Las Vegas, NV. This national event is hosted annually by the National Council of Agricultural Employers (NCAE), a leading trade association for farm employers. It’s the go-to event for farmers and ag businesses to stay informed about everything from labor laws and regulations to the H-2A Program and what to expect in the ever-changing ag industry. 

USA Farm Labor attended the NCAE Ag Forum to gather the latest intelligence around ag labor and the H-2A Program. This forum provided one of the clearest and most candid views we’ve seen in years regarding the direction of H-2A policy, enforcement posture, processing capacity, and wage methodology. Here are highlights from the event.

H-2A agency owners at NCAE Ag Forum

Key themes and takeaways from the NCAE Ag Forum

Theme 1: The H-2A Program is essential and irreplaceable

Shifting attitude

The NCAE Ag Forum confirmed a significant policy reset in favor of agricultural employers and long-term program stability. Presentation and presentation made clear that federal leadership at the highest levels now views the H-2A Program not as a temporary labor supplement, but as an essential and irreplaceable component of U.S. agricultural production that’s central to solving ag labor shortages. The tone has shifted from skepticism toward operational realism, economic sustainability, and compliance-based partnership.

Proactive support

The Secretary of Labor, Laurie Chavez-DeRemer, repeatedly stressed that agriculture is essential not just for food security, but also national security. She stated that the Administration’s objective is to support farmers, ranchers, producers, and the ag labor force. She added that they deserve a regulatory system that works with them, not against them.

Key dynamics enabling this shift include:

  • The Secretary of Labor is highly engaged and immigration-focused

  • Immigration policy authority is being centralized at the Secretary level

  • The U.S. Department of Agriculture (USDA) is decentralizing out of Washington, DC, moving staff closer to agricultural regions and eliminating billions in deferred maintenance through consolidation

  • Creation of a dedicated Office of Immigration Policy within the Department of Labor:

  • A ‘one stop shop’ for:

    • Streamlining immigration-related processes at DOL

    • Supporting employers (especially ag) by better aligning with their operational realities and enabling them to secure needed labor more efficiently

    • Coordinating H-2A Program policy

Key theme 1 takeaways for H-2A employers:

  • The H-2A Program remains secure, valued, and stable 

  • H-2A Program longevity is no longer in question

  • H-2A employers can expect faster responsiveness, reduced bureaucracy, and policy shaped by real agricultural operations

USA Farm Labor recommendations:

  • H-2A employers should plan multi-year labor strategies around structured H-2A participation, not contingency or stopgap use

  • H-2A employers should invest in long-term compliance, workforce planning, and relationships with reputable agencies

  • Partner selection now directly affects risk exposure and program outcomes

Theme 2: H-2A Program demand continues to grow

Annual demand for the H-2A Program has nearly doubled since 2017, from roughly 200,000 requested positions to more than 410,000 in 2025, the highest volume since it was created in 1986 with no viable domestic replacement pipeline. 

That 410,000 total includes both H-2A and H-2B visas, with 310,000 of that total being H-2A. The vast majority of H-2A workers, 286,000, still come from Mexico, with the second largest chunk, 15,000, coming from South Africa. 

Key theme 2 takeaways for H-2A employers:

  • The H-2A Program is here to stay and growing

  • We can expect to see continued reliance on the H-2A as the backbone of the U.S. agricultural labor force

  • The H-2A Program gives farmers and ag businesses improved predictability

USA Farm Labor recommendations:

  • South African participation remains strategically valuable due to consistently high compliance rates, extremely high reliability, and strong skill adaptability across crop types

  • USA Farm Labor specializes in providing verified, skilled ag labor

Theme 3: AEWR reform, housing adjustment, and wage relief

The Department of Labor issued an Interim Final Rule (IFR) on October 2, 2025, that provided a revised AEWR methodology, replacing flawed Farm Labor Survey data with more accurate market-aligned data. This rule applies to H-2A applications filed on or after that date.

The new rule adopted a two-skill-level wage methodology using Bureau of Labor Statistics (BLS) data. The IFR represents a fundamental change in how wages are set:

  • Move away from one-size wage floors

  • Wage floors tailored to job duties and qualifications

  • Recognition of skill levels and job complexity

  • Distinction between entry-level and experienced workers

  • Entry-level work no longer automatically paid at average occupational wage

  • Job classification based on duties performed for the majority of workdays

  • Addresses over-classification driven by incidental or minor tasks

  • Acknowledges housing as a real economic benefit

  • Includes an adverse compensation adjustment to offset employer costs such as housing. 

How the housing adjustment works:

  • The DOL recognized a basic problem—that the BLS wages reflect local U.S. workers, many of whom pay rent, while H-2A workers receive free housing

  • To avoid overstating total compensation and approximate an apples-to-apples comparison, the DOL applies a housing adjustment—also known as an Adverse Compensation Adjustment (ACA):

    • A built-in downward adjustment to the AEWR to account for the value of free housing, transportation, and other statutory benefits

    • A state-specific factor, roughly $1 to $3 per hour, is subtracted on the H-2A side at the calculation stage

  • This adjustment is internal to DOL’s math, meaning:

    • Employers pay the posted AEWR as DOL has already done the adjustment before publishing the number

    • It’s not a deduction from workers’ paychecks—employers aren’t deducting housing from wages

    • It doesn’t show on paystubs

    • The ACA is capped so as not to exceed 30% of AEWR

  • Domestic ‘corresponding workers’ do not receive ACA, they must be paid the full AEWR or higher

  • The AEWR now functions even more clearly as a floor:

    • If the state minimum wage is higher, that becomes the floor

    • Employers remain free to pay above AEWR, offer bonuses, or use piece rates, as long as guarantees are met

Key theme 3 takeaways for H-2A employers:

  • This change represents an estimated $2.4 billion in wage relief in 2026 and more than $17 billion in savings over ten years

  • It restores competitiveness against Mexico and Canada and improves the financial viability of specialty crops and labor-intensive operations

  • The IFR assumes 92% of H-2A jobs will be classified as Skill Level One, producing the largest wage savings in low minimum wage states

  • The structure appropriately differentiates experience and stabilizes long-term employment opportunities instead of pricing workers out of the program altogether

  • This change provides short-term cost relief and needed flexibility

  • Housing value is now recognized appropriately

  • H-2A employers can pay sustainable wages while remaining fully compliant

  • H-2A employers can keep returning and high skill workers above entry AEWR to protect retention and productivity

  • H-2A employers are encouraged to monitor state minimum wages and state surveys:

    • In states with rising minimum wages or active SWAs, your real floor may not be the federal AEWR

    • Watch for:

      • State prevailing wage determinations

      • State guidance on use of ACA

      • Local minimum wage ordinances that single out agriculture 

USA Farm Labor recommendations:

  • Tighten job orders and internal records:

    • Align duties in job orders with the chosen SOC code

    • Clearly describe:

      • Which duties are primary, occasional or secondary

      • What training will be provided on the job

    • Track roles in practice, so you can defend your coding if Wage and Hour asks

  • Be cautious with CDL and ‘mixed duty’ positions:

    • Avoid letting one person become a full-time driver if coded as a farmworker

    • If you truly need a dedicated driver, code the position honestly and plan for Level II where necessary

Theme 4: DOL is actively working to streamline H-2A processes

Here are a few of the key ways the Department of Labor is trying to simplify and streamline H-2A processes.

  • Concurrent Filing with the Department of Homeland Security (DHS):

    • DOL and DHS adopted a rule allowing concurrent electronic filing of:

      • Labor certifications and

      • I-129 petitions for H-2A workers

    • Goal: Cut several weeks off processing times

  • Staggered entry flexibility:

    • The restrictions on staggered entry have been removed 

    • The new approach:

      • Recognizes that need ramps up over the season

      • Weather, market, or operational changes are acceptable

      • Allows a single application with phased arrivals as long as:

        • The start date and

        • Windows or blocks for later arrivals are explained in the job order

    • H-2A employers can now:

      • File one application (versus several) with multiple start dates

      • Bring workers in groups as labor demand evolves

      • Avoid repeated filings for each arrival group

    • Staggered arrival permitted through the first 50% of the contract period

    • Staggered dates must be disclosed on the job order

    • Significant deviations should be documented

    • The 3/4 guarantee clock starts for each worker when that worker actually begins work, not the date listed for the earliest crew

    • 50% recruitment period is not extended per stagger

    • Dates are treated as estimates rather than rigid commitments

Key theme 4 takeaways for H-2A employers:

  • H-2A employers can expect:

    • Quicker processing times

    • Faster onboarding

    • More flexibility with multi-start-date crews

    • Improved worker arrival times

    • Reduced administrative friction during peak seasons

USA Farm Labor recommendations:

  • Combine phases of your workforce into one application where work ramps up over the season

  • Clearly explain projected arrival windows

  • Lean on our experts for help with concurrent filing and staggered entry planning

Department of Labor changes in support of the H-2A program

Theme 5: Backing off the 2024 Farmworker Protection Rule provisions and enforcement

Conflicting injunctions in the 2024 Farmworker Protection Rule created an unworkable patchwork of rules. The Department of Labor has responded by backing off certain provisions and not enforcing the rule during the current Administration. A final rule is expected in early 2026.

What’s expected to remain or be formalized:

  • Passport holding policy: 

    • The previous approach advised H-2A employers not to hold passports under any circumstances, even if workers requested

    • The revised approach allows employers to hold passports, only if the worker affirmatively asks, and return them immediately when requested

  • SWAs discontinuation of services:

    • SWAs have had the ability to refuse to post a job order if they believe an employer is noncompliant, which can shut down your H-2A participation

    • The new framework does not remove that power, but creates a defined process and a way to challenge a decision that services be discontinued

  • Overtime disclosure on job orders:

    • Rule focuses on transparency, not forcing overtime in states where OT is not required

    • Employers must disclose when overtime is available and at what rate, but this is mainly a disclosure requirement, not a new entitlement

What was effectively killed:

  • The ‘quasi union’ or grievance style components, such as:

    • Formal, mandatory multi-step discipline procedures

    • Requirements to allow advocates at disciplinary meetings

    • Provisions that started to look like collective bargaining or union protections in agriculture

Key theme 5 takeaways for H-2A employers:

  • Enforcement interactions are expected to be more transparent and cooperative

  • Wage and Hour remains an enforcement agency, but is shifting toward collaboration, transparency, and level-playing-field enforcement. Focus is on willful violators, not compliant employers. Bad actors threaten the program and must be addressed.

  • Compliance is still mandatory

USA Farm Labor recommendations:

  • Housing, payroll accuracy, and documentation remain critical

  • Compliance protects future seasons 

  • Leaning on a trusted partner like USA Farm Labor can keep you compliant and minimize your risk

What’s next for the H-2A Program?

Proposed changes under discussion:

  • Year-round visa options for dairy and other non-seasonal employers:

    • Creating a dedicated visa option for year-round agricultural work, particularly:

      • Dairy

      • Poultry

      • Other operations that don’t fit the current ‘temporary or seasonal’ standard in H-2A

  • Concepts that have been floated:

    • 3-year visa proposal

    • 5-year visa proposal

    • Dairy industry rotating crews proposal:

      • Keep the ‘temporary’ character at the worker level, for example, maximum stay of 9 months per worker

      • Allow employers to rotate crews, so the operation effectively has year-round coverage

  • Ag groups, with NCAE in the lead, have leveraged appropriations bills to insert targeted H-2A fixes, such as:

    • Expanded access to H-2A for year-round operations, dairy, CEA, mushrooms, etc.

    • Rollbacks of certain Biden era regulations

    • An AEWR wage freeze or guardrail concept

Final takeaways

The biggest takeaway from the NCAE Ag Forum is that we’re now experiencing the most employer-favorable H-2A environment in years. Here are some additional key takeaways: 

  • H-2A is not under attack. It is being corrected, stabilized, and defended.

  • 2026 is forecasted to be a pivotal year for U.S. agricultural labor, driven by heightened enforcement, wage pressure, and structural shifts in the H-2A program 

  • Expect accelerated growth of the H-2A program in 2026, particularly in western states where dependence on the program has historically been lower

  • Returning worker strategies will become more important, including incentives that reward productivity without locking in higher base wages

  • Mechanization should be viewed as a long-term productivity enhancement rather than a short term labor replacement strategy

  • H-2A employers will likely face continued scrutiny, regulatory flux, and the likelihood that agricultural labor policy will remain unsettled beyond 2026

Final USA Farm Labor recommendations

  • Labor certainty and compliance are core advantages of the H-2A Program

  • Treat wage relief under the new methodology as provisional rather than permanent 

  • Look to our experts to accurately translate these policy shifts, clear up misinformation, maintain compliance credibility, and protect both you, as an H-2A employer, and your workers by staying informed on all H-2A-related matters

USA Farm Labor can help

You can count on USA Farm Labor to help you fine-tune your job orders to accurately reflect primary and secondary responsibilities and skill levels. Need help understanding the new AEWR methodology or application, how staggered entry works, or how these changes impact your farm or ag business? We’re just a phone call away. Count on us not just for quality ag labor but for a partner you can trust for decades to come.

Let’s talk about how you can leverage these changes for the good of your farm or ag business.

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