Specialty crop growers press Senate committee for H-2A reform, better crop insurance and more research funding

At a Senate Agriculture, Nutrition, and Forestry Committee hearing, specialty crop growers, state agriculture directors and trade-group representatives told senators the next farm bill must address steep labor costs, outdated risk-management tools and reduced access to crop protection products.

Those witnesses said the combination of rising wages and administrative costs tied to the H-2A program, limited crop insurance availability for geographically dispersed specialty crops, water shortages in some regions and increasing imports have pushed growers toward insolvency and discouraged new entrants.

Brett Erickson, chair of the U.S. Government Relations Council for the International Fresh Produce Association, told the committee, “Labor costs remain the biggest threat to the future of U.S. fresh produce growers,” saying his Texas operation faces a fully loaded labor cost of roughly $23 per hour and that the federally mandated adverse effect wage rate inflates costs beyond market realities.

Why it matters: specialty crops — fruits, vegetables, tree nuts and nursery products — represent a large share of U.S. farm-gate value but, witnesses said, receive a small portion of farm-bill funding and have different risk and labor needs than commodity row crops. The witnesses urged Congress to update tools and program design so specialty-crop farms can manage weather, pest and market risk and remain viable.

Most urgent details

- Labor: Multiple growers asked Congress to reform the H-2A temporary agricultural worker program and to reconsider how the adverse effect wage rate (AEWR) is calculated. Anna Rineswalt, who operates Sandy Ridge Farms in Mississippi, said the AEWR in her state rose “31 percent” in five years and that the program’s paperwork and rising pay requirements impose large additional housing, transportation and administrative costs. She said many growers need year-round access to workers, not only seasonal help.

- Crop insurance and risk tools: Eighth-generation farmer Jeremy Hinton and other witnesses described limited insurance options for specialty crops because of low, dispersed acreage in many counties and recordkeeping challenges tied to direct-to-consumer sales. Hinton suggested expanding whole-farm and microfarm products, creating index options (e.g., rainfall/temperature indices) and allowing revenue products based on farm records rather than tax returns to speed indemnity payments.

- Research and market development: State officials including Tim Boring, director of the Michigan Department of Agriculture and Rural Development, and others urged continued and expanded funding for the Specialty Crop Block Grant Program, public-sector research, extension services and marketing-assistance programs to help growers prevent and respond to pests, disease and climate-driven production shocks.

- Water and inputs: Erickson described acute water shortages in parts of Texas tied to missed U.S.–Mexico treaty deliveries and rising water prices: “Less than 10 years ago, we were paying about $30 per acre-foot of water. Today it’s as high as $225 per acre-foot,” he said. Growers from arid regions asked the committee to expand conservation and irrigation-efficiency incentives.

- Trade and regulatory pressure: Witnesses said imports and foreign producers’ lower labor and regulatory costs are eroding domestic production. Erickson and others pointed to recent pesticide cancellations as examples of regulatory actions that removed tools growers had relied on for decades and increased vulnerability to foreign competition.

Questions from senators and staff probed practical fixes: how to make whole-farm policies work for specialty producers, whether RMA (Risk Management Agency) should pilot index or revenue products tied to farm records, and how the AEWR might be calculated to reflect actual employer costs. Hinton and others stressed implementation details such as timing of indemnity payments and the recordkeeping burden for direct-to-consumer sales.

What witnesses asked Congress to do

- Reform H-2A paperwork and AEWR calculations to reflect total employer costs (wages plus housing, transportation and administrative costs) and enable year-round staffing pathways where needed. - Direct USDA/RMA to pilot or expand specialty-crop risk products (whole-farm, microfarm, index-based or revenue products that rely on farm records rather than tax returns). - Preserve and increase funding for the Specialty Crop Block Grant Program, extension research and marketing-assistance programs to expand domestic markets. - Review pesticide regulatory processes and timing to reduce sudden cancellations without clear alternatives available to growers.

Speakers

- Brett Erickson — Chair, U.S. Government Relations Council, International Fresh Produce Association (industry representative). - Jeremy Hinton — Eighth-generation diversified specialty crop farmer (Kentucky). - Tim Boring — Director, Michigan Department of Agriculture and Rural Development (state official). - Anna Rineswalt — Sweet potato grower/operator, Mississippi (specialty crop farmer). - Ben Echeverri — President, New Mexico Chile Association; agricultural operations manager, Alum Food Ingredients (specialty crop grower/industry representative). - Additional senators and committee members who questioned witnesses: Chair Bozeman; Ranking Member Klobuchar; Senators Lujan, Smith, Bennett, Booker, Welch and others (committee members).

Authorities and programs cited (as discussed in testimony)

- H-2A temporary agricultural worker program (federal program/regulatory framework). - Adverse Effect Wage Rate (AEWR) (federal wage-rate calculation used in H-2A petitions). - Risk Management Agency (RMA) crop insurance programs and products (USDA program). - Specialty Crop Block Grant Program and Specialty Crop Research Initiative (federal grant programs). - 1944 U.S.-Mexico water treaty (referenced by witnesses on water deliveries).

Discussion versus decisions

- Discussion points: nature and scale of labor cost increases; limits of existing crop insurance for specialty crops; need for research and extension funding; water availability in border states; impact of regulatory cancellations and imports. - Directions: multiple senators signaled intent to include specialty-crop provisions in the next farm bill and to continue bipartisan work on risk-management and labor reforms. - Formal decisions: none recorded at the hearing; members asked for follow-up information and offered to coordinate legislative solutions.

Clarifying details extracted from testimony

- AEWR in Mississippi cited as $14.83/hour and described by a witness as producing an effective employer cost “more like $20 or $21 an hour” when housing, transport and administration are included (source: Anna Rineswalt, testimony). - Erickson’s company reported a fully loaded labor cost of approximately $23 per hour for produce operations in Texas (source: Brett Erickson testimony). - Mexico water obligation per testimony: 200,000 acre-feet per year under the 1944 treaty; Erickson said Mexico is “in debt 1,300,000 acre-feet” (source: Brett Erickson testimony). - Kentucky crop-insurance counts (example): “6 whole-farm policies and 4 microfarm policies written in Kentucky in 2024, compared to nearly 7,000 policies for soybeans” (source: Jeremy Hinton testimony).

Proper names mentioned

- International Fresh Produce Association (organization) - Michigan Department of Agriculture and Rural Development (agency) - Kentucky Horticulture Council (organization) - Specialty Crop Block Grant Program (federal grant program) - Risk Management Agency (USDA division) - H-2A program / AEWR (federal immigration/labor program) - 1944 U.S.–Mexico water treaty (international treaty)

Community relevance

- Geographies affected: Texas, Kentucky, Michigan, Mississippi, New Mexico, Minnesota and other specialty-crop states; Canada and Mexico noted as trading partners and sources of imports. - Impact groups: specialty crop growers, seasonal and H-2A workers, consumers of fruits and vegetables, school and institutional procurement programs. - Funding sources discussed: federal farm bill allocations, Specialty Crop Block Grant Program funds, USDA research and marketing programs.

Meeting context

- Engagement level: high (multiple panels, extensive Q&A across many senators and witnesses); specialty crops were the focus of the first panel. - Implementation risk: medium to high (many recommendations require statutory changes, RMA pilots, or interagency coordination). - History: witnesses repeatedly tied requests to design elements in prior farm bills and existing USDA programs.

Searchable_tags["specialty_crops","H-2A","AEWR","crop_insurance","specialty_crop_block_grants","RMA","water_supply","trade","regulatory_reform"]

provenance:{"transcript_segments":[{"block_id":"1112.615","local_start":0,"local_end":212,"evidence_excerpt":"First, we'll hear from several specialty crop growers and stakeholders from various parts of the country. The specialty crop industry continues to face unique pressures, the high cost of labor, competition with cheap imports, pest and disease, limited access to risk management tools, and the list goes on and on.","reason_code":"topicintro"},{"block_id":"6808.9097","local_start":0,"local_end":62,"evidence_excerpt":"Thank you all very much for being here. We appreciate it. Let's, swap panels real quick. And again, thank you all so much. Your testimony was great.","reason_code":"topicfinish"}]},"discussion_decision":{"discussion_points":["High H-2A costs and AEWR increases strain specialty crop growers","Existing crop insurance products often unavailable or impractical for dispersed specialty crops","Need for more public research and extension for pest/disease and climate risks","Water shortages threaten production in some regions","Imports and lost access to crop protection tools increase competitiveness pressures"],"directions":["Committee members expressed intent to pursue labor and risk management provisions in the next farm bill and requested follow-up detail from witnesses"],"decisions":[]},