In February, the state Department of Labor implemented final farm labor overtime regulations, with the goal of ensuring fairness for farm workers, who are essential to the agriculture sector. The phased reduction in the overtime pay threshold will begin on January 1, 2024, starting at 56 hours per week. Over the course of several years, the threshold will gradually decrease by four hours every other year until reaching 40 hours in 2032.
However, David Fisher, president of the New York Farm Bureau and a member of the wage board, believes that this change will pose significant challenges for farmers and farmworkers, fundamentally altering the landscape of New York’s agriculture industry.
The Farm Bureau has calculated that many farmers will struggle to afford overtime pay beyond 40 hours, potentially leading to business closures. They argue that as labor costs rise, farmers may be forced to reduce production and cut back on hours for farmworkers, ultimately harming both parties involved.
To address these concerns, Governor Kathy Hochul and the Legislature have implemented new tax credits to assist farm employers in adapting to the lower overtime standard. These policy changes acknowledge that farmworkers deserve equal treatment but recognize that farmers may face financial limitations to meet higher wage requirements.
Amidst these discussions, it is crucial to highlight an often-overlooked fact. The farm’s share of the final price consumers pay for food averages only about $0.15, according to the Economic Research Service of the U.S. Department of Agriculture. The remaining $0.85, known as the “marketing bill,” goes to sectors like processing, distribution, marketing, and retail. Over time, the farm’s share has declined, dropping to approximately $0.18 in 2011.
Upon closer examination, the figures reveal that after accounting for other payments to non-farm businesses, farmers typically retain only around $0.07 of the final dollar consumers spend on food. Out of this amount, they must cover expenses such as farmworker wages and land rent.
Therefore, framing the issue as farmworkers versus family farmers overlooks the larger picture. The majority of the food dollar does not stay with the farm but instead flows into various sectors of the food system. These include processing, distribution, marketing, and retail. Finding a solution requires innovative approaches that address this distribution imbalance.
The Coalition of Immokalee Workers of Immokalee, Florida, pioneered such an approach through its Fair Food Campaign. This initiative shifts a portion of the labor cost to the retail level and has successfully established agreements with major food retailers like Walmart, McDonald’s, Subway, and Compass Group. These buyers pay an additional penny per pound for tomatoes and maintain a human rights code of conduct standard on the farms that cultivate these tomatoes, fostering a more ethical supply chain.
A similar strategy could be developed in New York, drawing inspiration from Vermont’s Milk with Dignity program. This regional example is part of a broader worker-driven social responsibility movement involving farms, labor groups, faith-based organizations, food manufacturing firms, and others. By collaborating, these stakeholders strive to protect workers’ rights on a global scale.
The Fair Food Program approach acknowledges the need for farm workers to receive fair wages and respect while considering the financial constraints faced by family farms operating on narrow profit margins. By ensuring fair contributions from all components of the food system, New York could adopt this model and improve the financial well-being of both farmworkers and family farms.
In conclusion, it is crucial to consider the complexities involved in farm labor overtime regulations. Balancing the needs of farmworkers with the financial viability of family farms requires innovative solutions that address the distribution of the food dollar and promote fairness within the entire food system.
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