Senate Bill 2837 and Assembly Bill 2750

Here are some considerations for talking points.

  • A fact that no one wishes to address is in this case everyone is trying to improve the future for farm workers. While it may, on first glance, seem this is false, it is very true. Those of us in the industry know what will happen to the income opportunity for this group if this Bill passes. While good intentions are involved, it will harm the very people it wishes to help.
  • Overtime almost always limits the income potential for workers. While it is intended to reward the good employee, it most often limits the employee’s income potential. The end result is the employee is left with fewer dollars.
  • The reality is that farm employees represent a very specific skill set. Just because you increase a perk
    Paul Baker,
    Executive Director
    NYSHS

    such as overtime does not mean you will suddenly have new employees with the necessary skill set. There are only 700 players in the world with enough skill to play major league baseball. If you increase the pay there will still only be 700 players with such skills. Farm employees are in such a skill set. Supply and demand should set their income value. It has in the past and no doubt it will in the future. But it needs to be noted that to simply increase over time we will not see a new wave of citizens capable or willing to be a farm employee. Farm wages are above most retail today and yet we need to import our employees because domestic workers do not have the skill or desire to fill these jobs.

  • Our fear is if this bill, as drafted, is passed it will force farms to dramatically shift their product mix away from labor to mechanized crops. This would be such a culture shift it would be impossible to reverse. End result would be that not only farm employees but NYS employees working in milk plants, processing plants and other crop related tasks jobs would be gone.
  • NYS is an import state for farm employees. As previously noted, these employees are in short supply. They will have other opportunities to work in other states that will allow them to have the hours they desire for the time they are willing to sacrifice to be away from their homes. In short then we may very well be faced with a very high level of unfilled jobs.

What is at Stake in the next Year in Albany?

No one has a lock on tomorrow. We each can offer our most sincere educated estimate about the future. We must try to stay within our known borders and then project what could possibly happen. With total 100% certainty the political climate in Albany in 2019 will be changed. We know for certain that all three chambers now rest comfortably within one party. This makes passage of party programs significantly easier to obtain. Based upon the history of the last decade, it is safe to assume new legislation will be offered up that will significantly impact our industry. The question yet to be decided will be whether we can withstand these revolutionary changes?

The most obvious issue that will be facing NYS agriculture will it be mandated, like all other segments of labor, to pay employees on a 40-hour work week and pay time and a half? Collective bargaining is also of concern. For today let us simply look at time and a half on a commercial fruit farm. To do this we will make a few assumptions. We will assume that for this farm to maintain a credible work force that they are in the H2A program. Last year the adverse effect wage rate was $12.83.  We do not know the new one but it most likely will be in the range of $13 plus.  For today I will use last year’s rate. For my calculations I am going to say harvest was 10 weeks. I am going

Paul Baker,
Executive Director
NYSHS

to say the farm employed 50 workers. The average work week in harvest was 60 hours. In 2018 then that farm had a weekly hourly outlay just for harvest wages of $38,490. (60 hours X $12.83= $769.80 per employee. Now X 50 employees = $38,490 per week). This, of course, does not consider State unemployment and workers comp related costs. If we now do the same exercise at time and a half for this same farm, we see his direct costs rise to $2 shy of $900 per man per week. So, his new payroll will be up (40 hours X $12.83= $513.20 plus 20 hours at $19.25= $385). So, the new weekly pay check will be then $898.20. Same crew and not one extra bushel harvested. This farm will then have a weekly payroll of harvest employees alone of $44,910 plus other employment charges (50 employees X $898.20= $44.910).

For our simple example, Fruit Farm X has an increase of $6,420 per week ($44,910 – $38,490 = $6420). Now over 10 weeks we see an increase to harvest employees alone of $64,200. Same production.

The NYS minimum wage in 2019 is $11.10. This is $3.85 above the federal minimum wage. If you are in H2A you are paying $5.58 above the federal minimum wage. Farm wages are not by any means the lowest in the land. They greatly exceed the average small business sectors up and down main street. We need to make this point. Each farm employee creates multiple off farm jobs in NYS. Clearly NYS fruit farms cannot remain competitive if they must absorb these new estimated charges. A compromise must be reached, or we will see NYS forever altered. I remind everyone of the stark reality that once a farm operation closes its doors it never returns. Are we ready to see this radicle change in our State? Now is the time for everyone to get concerned. Currently, we have not seen the legislation we did our math homework on in this State. Today is not too late to begin a very serious debate.

I am asking each of you to rethink all the issues. As farmers, we are not immune to annual changes in weather, technology and markets. It comes as no surprise to anyone that labor availability is tied to higher wages. Agriculture in NYS is tied to a very high usage of labor. We are not an Iowa corn-based economy. As the new year arrives each of you need to educate yourself on all levels. Take advantage of educational programs such as the Becker Forum coming in January 2019. Reach out to your respective NYS legislators and have a discussion with them as to what is at stake. Support the efforts of your respective organizations that are presenting logical debates to many of these proposals.  If you fail to speak, I assure you this void will be filled by voices that have no real skin in the game. Action will occur. I encourage you to be a part of it.