Authors: Gracen Briges, Kelli Russell, and Mykel Taylor



Agricultural lenders play a key role in farm operations. According to the USDA ERS, about 60% of midsize farms and 75% of large farms&nbsp;<a>carry</a>&nbsp;debt, highlighting the importance of the farmer-lender relationship. But how do farmers portray these relationships? We conducted 74 in-depth&nbsp;interviews&nbsp;with 98 farmers and ranchers in four states (Alabama, Kansas, Montana, and North Carolina). Interview participants included midsize and large-scale operations producing a diverse range of crop and livestock products. Participants’ description of their lender relationships tended to fall into three types: trusting and collaborative, strained and tense, and transactional and unstable. Here’s what they told us.



Trusting and Collaborative Relationships



Farmers described a wide range of positive relationships and experiences with their lenders, often emphasizing trust. Many characterized their relationships as “good,” “very good,” or even “great.”&nbsp;&nbsp;In most cases, lenders were described as partners, advisors, and collaborators invested in the farm or ranch operation&#8217;s well-being. Farmers emphasized the importance of transparent, open communication, as one farmer explained, “I want them to tell me if I&#8217;m being dumb [in] a decision I&#8217;m making.” Long-term relationships&nbsp;<a>were</a>&nbsp;common. One producer described his long-term relationship, “I’ve had the same one since I got a checkbook when I was in high school.” Others noted the importance of responsiveness, one farmer noting he could “pick up the phone and call &#8217;em even if it&#8217;s after hours at night.” Many reported that they were willing to pay a slightly higher interest rate for a lender with an understanding of agriculture.&nbsp;



Strained and Tense Relationships



Some farmers shared examples of lender interactions that made them feel especially tense or stressed, often related to the bank’s financials being prioritized over understanding the realities of farming. As one farmer explained, “I just know that&nbsp;<a>they&#8217;re</a>&nbsp;a salesman. They&#8217;re just trying to sell me money,” and another added, “They&#8217;re out for themselves.” These situations often created a fear of denial or being judged, especially during financially difficult&nbsp;<a>years</a>. And as one pointed out, sometimes the lending institutions were also part of the stress, not a solution to it, stating, “They came calling for money earlier than I expected.” These negative relationships clearly added management constraints, uncertainty, and increased stress.&nbsp;



Transactional and Unstable Relationships&nbsp;



Other farmers described relationships that were neither positive nor negative. One farmer stated,&nbsp;“At the end of the day, it&#8217;s business strategy – not a relationship.” This group of producers was less concerned with relationships than with interest rates and tended to have minimal interactions with their banks as a strategy. However, drawbacks to this type of non-relationship were often acknowledged. A producer explained, “We switched 10 years ago for better interest rates, and I’ve had three different lenders in those 10 years.” Following the best interest rate led to having to constantly build a working relationship with a new lender. A second group cited lender turnover as the reason for having transactional or transitional relationships with their lender. Frequent personnel changes can leave ranchers and farmers constantly working to build trust with a newly hired lender. One farmer explained, “The problem I’ve had lately is a lot of loan officers are retiring, and it’s kind of making everything chaotic.” Even with capable new lenders, farmers expressed a cautious attitude with short relationships and little understanding of their specific agricultural operation. Regardless of the cause, the lack of long-term familiarity created uncertainty when making farm management decisions.&nbsp;



The Bigger Picture



The experiences of farmers and ranchers we interviewed reveal the importance of the lender relationship in farm management decisions. We learned that trust, communication, and a thorough understanding of agriculture in farmer-rancher/lender relationships are just as important as (if not more than) access to capital for farmers and ranchers. Strong, collaborative relationships can and do reduce uncertainty and help agricultural producers navigate the challenges of short and long-term planning. One farmer summed up her relationship with her lender by stating, “They have treated us unlike any other banking entity. They treated us like people and not numbers.” Other relationships that lack understanding or personal connection can create additional stress, uncertainty, and cautious decision-making. Recognizing these relationship dynamics helps highlight what farmers value most in their lenders.

“More Than a Number”: The Farmer Lender Relationship

Introduction



Crop and animal production can be an inherently dangerous field, with the Bureau of Labor Statistics estimating, in 2024, over 23,000&nbsp;<a href="https://www.bls.gov/web/osh/table-2-industry-cases-national.htm">nonfatal</a>&nbsp;injuries and approximately 300&nbsp;<a href="https://www.bls.gov/iif/fatal-injuries-tables/fatal-occupational-injuries-table-a-1-2024.htm">fatal</a>&nbsp;injuries associated with the industries. Workers’ compensation is a type of insurance coverage purchased by employers that compensates employees when they get injured while working. State law generally dictates which employers are required to obtain workers’ compensation, with varying requirements across the country. Some states like Alabama, Georgia, and Tennessee exempt employers of farm laborers from the state workers’ compensation requirements. Other states like Maryland and Florida only require some agricultural employers to purchase workers’ compensation policies.



While the state normally determines which employers are required to purchase workers’ compensation, the federal government has weighed in when employers utilize federal programs like the H-2A visa program. Under the H-2A program, employers are required to purchase workers’ compensation coverage regardless of state law requirements or exemptions. The H-2A program is jointly administered by three federal agencies – U.S. Department of State, U.S. Department of Labor (DOL), and U.S. Citizenship and Immigration Services. The H-2A program is authorized under the&nbsp;<a href="https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title8-section1188&amp;num=0&amp;edition=prelim">Immigration and Nationality Act</a>.&nbsp;



H-2A Program



The H-2A program allows employers to fill temporary seasonal agricultural jobs with foreign workers. To participate in the H-2A program, the job must be seasonal in nature, so jobs typically filled by H-2A workers include planting and harvesting crops and some livestock care and handling. The dairy and poultry industries typically cannot utilize the H-2A program because those are seen as year-round industries. However, there have been efforts in&nbsp;<a href="chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https:/agriculture.house.gov/uploadedfiles/alwg_final_report_-_3.7.23.pdf">Congress</a>&nbsp;to allow these year-round industries to access the program.&nbsp;



The U.S. Department of Agriculture has provided a&nbsp;<a href="https://www.farmers.gov/working-with-us/h2a-visa-program">website</a>&nbsp;that outlines all of the steps and costs associated with participating in the H-2A Program. One of the steps, among many, the employer must complete is filing the&nbsp;<a href="https://www.dol.gov/agencies/eta/foreign-labor/forms">Form ETA-790A</a>&nbsp;with the U.S. Department of Labor.&nbsp;&nbsp;The application form is then sent to the State Workforce Agency to approve or reject. The&nbsp;<a href="chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https:/www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/FR_07_Form_ETA-790A_11-30-2025.pdf">form</a>&nbsp;requires employers to certify that they “agree to provide workers’ compensation insurance coverage in compliance with State law covering injury and disease arising out of and in the course of the workers’ employment. If the type of employment for which the certification is sought is not covered by or is exempt from the State’s workers’ compensation law, the employer agrees to provide, at no cost to the worker, insurance covering injury and disease arising out of and in the course of the worker’s employment that will provide benefits at least equal to those provided under the State workers’ compensation law for other comparable employment.” So, if a state agricultural exemption applies to the employer but the employer is utilizing workers through the H-2A program, that employer would be required to purchase workers’ compensation or other comparable insurance coverage despite the state law exemption.



A certifying officer (CO) at DOL and the State Workforce Agency will review the submitted forms and either approve or reject the application. Prior to DOL issuing the temporary agricultural labor certification, under DOL regulations, the “employer must provide the CO with proof of workers’ compensation insurance coverage meeting the requirements [outlined above], including the name of the insurance carrier, the insurance policy number, and proof of insurance for the entire period of employment, or, if appropriate, proof of State law coverage.”<a href="applewebdata://685EBFA1-A506-4178-BE97-232C08812CA8#_ftn1">[1]</a>



When an employer has both H-2A workers and domestic workers, workers’ compensation or comparable insurance benefits must be provided to all employees. An employer is prohibited from offering domestic workers less benefits than H-2A workers.<a href="applewebdata://685EBFA1-A506-4178-BE97-232C08812CA8#_ftn2">[2]</a>



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<a href="applewebdata://685EBFA1-A506-4178-BE97-232C08812CA8#_ftnref1">[1]</a>&nbsp;20 C.F.R. § 655.122(e) (2026).



<a href="applewebdata://685EBFA1-A506-4178-BE97-232C08812CA8#_ftnref2">[2]</a>&nbsp;20 C.F.R. § 655.122(a) (2026).



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Capaldo, Samantha. &#8220;<a href="https://southernagtoday.org/2026/02/05/understanding-workers-compensation-requirements-for-employers-of-h-2a-workers/">Understanding Workers’ Compensation Requirements for Employers of H-2A Workers.</a>&#8221; Southern Ag Today 6(16.5). April 17, 2026. <a href="https://southernagtoday.org/2026/02/05/understanding-workers-compensation-requirements-for-employers-of-h-2a-workers/">Permalink</a>

Understanding Workers’ Compensation Requirements for Employers of H-2A Workers

The Livestock Risk Protection Plan (LRP) provides protection against price declines for feeder cattle, fed cattle, and swine. A Southern Ag Today article from August 2025 (<a href="https://southernagtoday.org/2025/08/11/usdas-livestock-risk-protection-program-use-keeps-increasing/">USDA’s Livestock Risk Protection Program Use Keeps Increasing</a>) outlined LRP participation among cattle producers.&nbsp;&nbsp;The previous article highlighted increased LRP participation following USDA changes to LRP and improvement in market prices for feeder and live cattle.&nbsp;&nbsp;In terms of number of head of cattle, LRP participation increased 25% from 2023 to 2024 and 21% from 2024 to 2025.&nbsp;&nbsp;



LRP policies run on a fiscal year starting July 1 and ending June 30. With less than 3 months to go in the fiscal year 2026, this article serves as an update on LRP participation considering the expectation of sustained (and rising) cattle prices in 2026.&nbsp;&nbsp;The projected strong price forecast for cattle is driven by historically low cattle inventories and the anticipation of a slow herd rebuilding process, reduced supply of fed cattle for slaughter, and sustained beef demand.&nbsp;



The expectation of sustained or higher cattle prices begs the question: do producers continue to utilize (and pay premiums for) LRP to protect against price declines when a price decline seems unlikely?&nbsp;&nbsp;So far in FY2026, there are 5.93 million head covered by LRP policies compared to 6.03 million at this time in FY2025 – 1.65% fewer head.&nbsp;&nbsp;It seems cattle producers are on track to utilize LRP for roughly the same number of head as last year, showing producers are willing to spend money on an LRP policy to reduce downside risk and establish a price floor despite the well-supported expectation 2026 will see sustained, and even higher, cattle prices.&nbsp;



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2158" height="1622" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.4.png" alt="" class="wp-image-43793" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.4.png 2158w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.4-1024x770.png 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.4-768x577.png 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.4-1536x1154.png 1536w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.4-2048x1539.png 2048w" sizes="auto, (max-width: 2158px) 100vw, 2158px" /></figure>



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Stewart, Natalie. &#8220;<a href="https://southernagtoday.org/2026/02/05/2026-lrp-participation-given-the-expectation-of-sustained-cattle-prices/">2026 LRP Participation Given the Expectation of Sustained Cattle Prices.</a>&#8221; Southern Ag Today 6(16.4). April 16, 2026. <a href="https://southernagtoday.org/2026/02/05/2026-lrp-participation-given-the-expectation-of-sustained-cattle-prices/">Permalink</a>

2026 LRP Participation Given the Expectation of Sustained Cattle Prices

The April Edition of the&nbsp;World Agricultural Supply and Demand Estimates&nbsp;(WASDE) from USDA looked much like the March edition. The 2025/26 US ending stocks for corn, soybean, and cotton were unchanged from the March 2026 report. U.S. wheat ending stocks were slightly higher than the previous month. Globally, corn, wheat, and cotton ending stocks increased for the 2025/26 marketing year while soybean stocks decreased slightly. While U.S. supply and demand appear stable, the market reaction is not.



USDA increased the season average price projections for corn, soybeans, wheat, and cotton as shown in Table 1.&nbsp;



Table 1. U.S. Marketing-year weighted average price received by farmers



<figure class="wp-block-table has-small-font-size"><table><tbody><tr><td>&nbsp;</td><td class="has-text-align-center" data-align="center">Mar 2026 Projection</td><td class="has-text-align-center" data-align="center">Apr 2026Projection</td></tr><tr><td>Corn</td><td class="has-text-align-center" data-align="center">$4.10</td><td class="has-text-align-center" data-align="center">$4.15</td></tr><tr><td>Soybeans</td><td class="has-text-align-center" data-align="center">$10.20</td><td class="has-text-align-center" data-align="center">$10.30</td></tr><tr><td>Wheat</td><td class="has-text-align-center" data-align="center">$4.95</td><td class="has-text-align-center" data-align="center">$5.00</td></tr><tr><td>Cotton</td><td class="has-text-align-center" data-align="center">$0.60</td><td class="has-text-align-center" data-align="center">$0.61</td></tr></tbody></table><figcaption class="wp-element-caption">Source: USDA WASDE April Report.</figcaption></figure>



The price increase is helpful for U.S. producers with unpriced production. However, the increase in the marketing year average (MYA) price will reduce the USDA’s 2025 Price Loss Coverage (PLC) payments for these crops, as shown in Table 2. 



Table 2. USDA Projected 2025 PLC Payment Rates&nbsp;



<figure class="wp-block-table has-small-font-size"><table><tbody><tr><td>&nbsp;</td><td class="has-text-align-center" data-align="center">Mar 2026 Projection</td><td class="has-text-align-center" data-align="center">Apr 2026 Projection</td><td class="has-text-align-center" data-align="center">Change</td></tr><tr><td>Corn (bu)</td><td class="has-text-align-center" data-align="center">$0.32</td><td class="has-text-align-center" data-align="center">$0.27</td><td class="has-text-align-center" data-align="center">-15.6%</td></tr><tr><td>Soybeans (bu)</td><td class="has-text-align-center" data-align="center">$0.51</td><td class="has-text-align-center" data-align="center">$0.41</td><td class="has-text-align-center" data-align="center">-19.6%</td></tr><tr><td>Wheat (bu)</td><td class="has-text-align-center" data-align="center">$1.40</td><td class="has-text-align-center" data-align="center">$1.35</td><td class="has-text-align-center" data-align="center">-3.6%</td></tr><tr><td>Seedcotton (lb)</td><td class="has-text-align-center" data-align="center">$0.0908</td><td class="has-text-align-center" data-align="center">$0.0851</td><td class="has-text-align-center" data-align="center">-6.3%</td></tr></tbody></table><figcaption class="wp-element-caption">&nbsp;Source: USDA Farm Service Agency Table 3. Projected 2025 Price Loss (PLC) Coverage Payment Rate.</figcaption></figure>



Reduced PLC payments in the fall of 2026 will shrink revenue for producers already struggling with increased input prices. While the PLC payment rates have fallen for these crops, actual payments for the 2025 crop year will be based on the higher of the Agriculture Risk Coverage (ARC) or PLC payment rates.



The futures market had a mixed response to the April WASDE report (see Table 3). Corn and soybeans prices closed lower on April 13th&nbsp;than the day before WASDE’s release. Cotton prices were higher and wheat was unchanged.&nbsp;



Table 3. 2026 Futures Prices



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="512" height="165" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.3-3.png" alt="" class="wp-image-43784"/><figcaption class="wp-element-caption">Source: Barchart</figcaption></figure>



Producers need to watch cash and futures for marketing opportunities as planting season usually provides the highest prices of the year.



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Mickey, Scott. &#8220;<a href="https://southernagtoday.org/2026/02/05/april-wasde-recap/">April WASDE Recap.</a>&#8221; Southern Ag Today 6(16.3). April 15, 2026. <a href="https://southernagtoday.org/2026/02/05/april-wasde-recap/">Permalink</a>

April WASDE Recap

The outlook for the dairy industry going into 2026 was cautious. After strong prices in the latter half of 2024, milk production expanded rapidly mid-way through 2025. Milk prices came down significantly as a result. Given the size of the dairy cow herd, there was little indication the supply situation would resolve itself in the short term.



January 2026 data indicated that this price situation was playing itself out. The average all milk price in January 2026 was just $17.50/cwt (see Figure 1). This was the lowest January reading since 2021. This low milk price appeared to be the result of significant milk production (see Figure 2; over 3% higher year over year).



Fast forward just one month, and the story seemed to be shifting. In February 2026, milk production was again up compared to year-ago levels (just under 3% year over year). However, the all milk price rose by $0.80/cwt compared to January 2026 (around 5% jump month-over-month). These improved February prices contributed to higher milk margins despite higher feed costs.



Recent weekly data shows continued price improvements in March compared to January. Wholesale dairy product prices from cheese, butter, non-fat dry milk, and whey have increased from the start of the year (e.g., butter and cheese) and/or are higher compared to year-ago price levels (e.g., non-fat dry milk and whey). Strong exports have played an important role in this improvement, too. Total tons of dairy products exported are up by over 10% through the first two months of the year compared to the same time last year.



In the months ahead, the outlook could face headwinds. Exports may start to face pressure from geopolitical uncertainty and from higher prices. Additionally, the supply situation does not appear to be changing over the next few months, as beef-on-dairy calves remain a very profitable avenue for dairy producers, and weekly dairy cow slaughter appears to be similar to last year’s levels. The remainder of the year may be a tightrope walk balancing large supplies and demand.



Figure 1. 



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="979" height="712" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.2-1.png" alt="" class="wp-image-43768" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.2-1.png 979w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.2-1-768x559.png 768w" sizes="auto, (max-width: 979px) 100vw, 979px" /></figure>



Figure 2. 



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="979" height="685" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.2-2.png" alt="" class="wp-image-43769" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.2-2.png 979w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.2-2-768x537.png 768w" sizes="auto, (max-width: 979px) 100vw, 979px" /></figure>

Dairy Prices Rebounding After Difficult Start and Immense Production

A top priority of the second Trump administration is to enforce immigration laws, including mass deportations. Since the size of the undocumented population is likely at least 10 million people (Gutierrez-Li, 2025), the removal of a significant number of undocumented individuals could have economic effects on industries that have historically employed them. Such industries include agriculture, construction, and hospitality (Gutierrez-Li, 2026). In the case of farming, foreign workers represent around two thirds of the labor force, with undocumented workers accounting for around 40% of hired crop laborers (USDA, 2026), making agriculture particularly susceptible to immigration policies.



While the production of row crop commodities is highly mechanized, specialty crop agricultural operations common in the Southeast and the West Coast are still heavily reliant on a dependable workforce. Incidentally, undocumented individuals are concentrated in states like California, Florida, Washington, Georgia, and North Carolina (Table 1), where labor-intensive agriculture is prevalent. Despite the recent intensification in immigration enforcement, the reality is that there has already been a reduction in the inflow of undocumented workers to the agricultural sector for several years. Tightening labor markets and a diminishing supply of undocumented workers have led to significant growth in the number of H-2A visas issued each year, which constitute the only legal channel for bringing foreign agricultural workers to the United States. Since the early 90s, the H-2A program has been gaining popularity among agricultural producers, to the point that more than 300,000 H-2A visas were issued by the U.S. government in 2024 (Figure 1).&nbsp;



Table 1. Unauthorized Immigrant Population by Top Ten States of Residence, 2018–2020 and 2022



<figure class="wp-block-table aligncenter has-small-font-size"><table><tbody><tr><td>State</td><td class="has-text-align-right" data-align="right">2018</td><td class="has-text-align-right" data-align="right">2019</td><td class="has-text-align-right" data-align="right">2020</td><td class="has-text-align-right" data-align="right">2022</td></tr><tr><td>California</td><td class="has-text-align-right" data-align="right">2,640,000</td><td class="has-text-align-right" data-align="right">2,620,000</td><td class="has-text-align-right" data-align="right">2,410,000</td><td class="has-text-align-right" data-align="right">2,600,000</td></tr><tr><td>Texas</td><td class="has-text-align-right" data-align="right">1,950,000</td><td class="has-text-align-right" data-align="right">1,950,000</td><td class="has-text-align-right" data-align="right">1,900,000</td><td class="has-text-align-right" data-align="right">2,060,000</td></tr><tr><td>Florida</td><td class="has-text-align-right" data-align="right">680,000</td><td class="has-text-align-right" data-align="right">650,000</td><td class="has-text-align-right" data-align="right">610,000</td><td class="has-text-align-right" data-align="right">590,000</td></tr><tr><td>New Jersey</td><td class="has-text-align-right" data-align="right">460,000</td><td class="has-text-align-right" data-align="right">390,000</td><td class="has-text-align-right" data-align="right">400,000</td><td class="has-text-align-right" data-align="right">490,000</td></tr><tr><td>Illinois</td><td class="has-text-align-right" data-align="right">460,000</td><td class="has-text-align-right" data-align="right">440,000</td><td class="has-text-align-right" data-align="right">370,000</td><td class="has-text-align-right" data-align="right">420,000</td></tr><tr><td>New York</td><td class="has-text-align-right" data-align="right">600,000</td><td class="has-text-align-right" data-align="right">510,000</td><td class="has-text-align-right" data-align="right">370,000</td><td class="has-text-align-right" data-align="right">410,000</td></tr><tr><td>North Carolina&nbsp;</td><td class="has-text-align-right" data-align="right">360,000</td><td class="has-text-align-right" data-align="right">340,000</td><td class="has-text-align-right" data-align="right">360,000</td><td class="has-text-align-right" data-align="right">360,000</td></tr><tr><td>Georgia</td><td class="has-text-align-right" data-align="right">390,000</td><td class="has-text-align-right" data-align="right">360,000</td><td class="has-text-align-right" data-align="right">360,000</td><td class="has-text-align-right" data-align="right">340,000</td></tr><tr><td>Washington</td><td class="has-text-align-right" data-align="right">310,000</td><td class="has-text-align-right" data-align="right">330,000</td><td class="has-text-align-right" data-align="right">340,000</td><td class="has-text-align-right" data-align="right">340,000</td></tr><tr><td>Arizona</td><td class="has-text-align-right" data-align="right">340,000</td><td class="has-text-align-right" data-align="right">330,000</td><td class="has-text-align-right" data-align="right">340,000</td><td class="has-text-align-right" data-align="right">290,000</td></tr><tr><td>Other/unknown</td><td class="has-text-align-right" data-align="right">3,380,000</td><td class="has-text-align-right" data-align="right">3,200,000</td><td class="has-text-align-right" data-align="right">3,040,000</td><td class="has-text-align-right" data-align="right">3,090,000</td></tr><tr><td>Total</td><td class="has-text-align-right" data-align="right">11,570,000</td><td class="has-text-align-right" data-align="right">11,110,000</td><td class="has-text-align-right" data-align="right">10,510,000</td><td class="has-text-align-right" data-align="right">10,990,000</td></tr></tbody></table><figcaption class="wp-element-caption">Source: Gutierrez-Li, A (2025) with data from the U.S. Department of Homeland Security Office of Homeland Security Statistics, population estimates, referenced in Baker and Warren (2024).</figcaption></figure>



Despite the rapid growth in the demand for H-2A workers, there are reasons to think that the program is far from solving agricultural labor shortages. Farmers and industry groups have repeatedly cited that while they value the ability to hire H-2A workers as needed, the high costs associated with doing so have limited the number they can afford. However, at the end of 2025, several changes were made to the H-2A program. First, the data source to calculate the minimum wages changed. Second, two categories of wages were created. One for the five standard occupational class codes covering field and livestock workers, and another for all other standard occupational class codes. Third, two different wage rates were introduced, based on skill level (I and II). Fourth, a reduction in wages paid by employers if housing is provided. Altogether, these changes led to significant reductions in the minimum wages paid to H-2A workers across most states, which will likely result in a significant increase in the program’s utilization.&nbsp;



Figure 1. H-2A Visas Issued by the U.S. Government: 1992-2024



<figure class="wp-block-image aligncenter size-full"><img loading="lazy" decoding="async" width="2241" height="1397" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.1-F1.png" alt="" class="wp-image-43755" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.1-F1.png 2241w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.1-F1-1024x638.png 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.1-F1-768x479.png 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.1-F1-1536x958.png 1536w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/04/6.16.1-F1-2048x1277.png 2048w" sizes="auto, (max-width: 2241px) 100vw, 2241px" /></figure>



Gutiérrez-Li, Alejandro. &#8220;<a href="https://southernagtoday.org/2026/02/05/agricultural-labor-outlook-in-2026/">Agricultural Labor Outlook in 2026.</a>&#8221; Southern Ag Today 6(16.1). April 13, 2026. <a href="https://southernagtoday.org/2026/02/05/agricultural-labor-outlook-in-2026/">Permalink</a>



Increasingly strict immigration policies that reduce the number of undocumented farmworkers may well be offset by a comparable rise in the number of H-2A workers, leaving the net impact on the farm labor supply of both policies somewhat unnoticeable. Combined, the policies of the second Trump Administration could reduce the share of undocumented workers in agriculture, which would generally be positive. However, the significant short-run reductions in H-2A workers’ wages will likely disincentivize investment in automation, leaving employers vulnerable to future changes in wage policies following political cycles.&nbsp;



References



Farm Labor. Economic Research Service. United States Department of Agriculture.



Gutiérrez-Li, A. 2026. Breaking Down the Deportation Strategy: A Look at Policies, Costs and Potential Consequences. Choices 41(1).



Gutiérrez-Li, A. 2025. The Unseen Workforce: How Immigration Enforcement Could Shake the U.S. Economy. Choices 40(3).



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Gutiérrez-Li, Alejandro. &#8220;<a href="https://southernagtoday.org/2026/02/05/agricultural-labor-outlook-in-2026/">Agricultural Labor Outlook in 2026.</a>&#8221; Southern Ag Today 6(16.1). April 13, 2026. <a href="https://southernagtoday.org/2026/02/05/agricultural-labor-outlook-in-2026/">Permalink</a>

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