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Trying to use legal foreign labor and still turn a profit
has become the top challenge for tobacco growers in Person
County and elsewhere across the nation. Immigration reform
could make that challenge even more difficult in coming years.
This year, approximately 45 Person County farmers, like their
counterparts across the United States, will have to pay a
higher price for legal foreign labor.
Tammy Blalock, of Vernon Blalock and Sons Farm in Bushy Fork,
addressed the annual tobacco growers meeting Wednesday night
and told the large gathering that she had drawn a petition
she hopes to send to state and federal representatives in
an effort to hold the line on labor costs. >>
During the 2007 growing season, Blalock said, tobacco farmers
will have to pay $1,000 per person to bring in H2A, or guest
workers, from Mexico. Last year, the cost was about $800 per
person. The wage paid these workers will also rise, Blalock
said, from $8.96 per hour to $9.02 per hour.
The H2A wage and acquisition fees are determined by a formula
the federal government uses, and the formula is difficult
to decipher, according to Derek Day, Person County Cooperative
Extension Service director.
The guest worker program began, Day said, as a way to address
the labor shortage in certain U.S. job markets. It is an agreement,
Day explained, which allows Mexican citizens to come to the
U.S. on a temporary basis and work for a contracted length
of time. At the end of the contract, the guest workers are
supposed to return to Mexico.
?his is not an amnesty or a Visa program,?Day emphasized.
He said that farmers who use H2A labor must pay the workers
for 40 hours a week for the length of the contract, which
typically covers the entire growing season of 16 weeks. If
there is a disaster, such as hail or wind damage, said Day,
and the workers can? work in the tobacco fields, their pay
must continue.
One farmer at Wednesday night? meeting said he did not like
the thought of paying this high-priced labor ?o weed-eat.?o:p>
In addition to the acquisition fee and hourly wages, farmers
must also provide adequate housing (which is inspected by
the N.C. Department of Labor and must meet OSHA standards)
and transportation for the H2A workers, as well as carry Workmen?
Compensation insurance.
When all of the figures are added together, the guest workers
are averaging around $12 an hour in wages.
Blalock and other growers at this week? meeting said that,
while they are happy to get the workers from Mexico because
they can? find U.S. workers willing to do the jobs, they are
extremely unhappy about the cost of this labor.
The growers added that they preferred to use laborers from
the guest worker program rather than illegal immigrants. The
growers also noted that the minimum wage for Americans is
$6.25, thus, all totaled, they are forced to pay nearly double
what many U.S. citizens make in order to grow their crops.
According to the Department of Labor, the wage or rate of
pay must be the same for U.S. workers and H-2A workers. The
hourly rate must also be at least as high as the applicable
Adverse Effect Wage Rate (AEWR), federal or state minimum
wage, or the applicable prevailing hourly wage rate, whichever
is higher. The AEWR is established every year by the Department
of Labor for every state except Alaska.
Gary Bullen, economist with N.C. State University, told growers
Wednesday that managing their labor costs has been and remains
?he number one challenge?facing farmers.
?ou have to manage your labor if you?e going to make money,?he
said, noting that he had never met a farmer, or anyone else,
who enjoyed working for nothing.
Bullen cautioned growers that immigration reform could affect
them for years to come.
?his is going to drive what happens in tobacco for the next
few years,?he said Wednesday night. The labor issue, and the
cost of doing business in tobacco growing, he said, ?s totally
tied to Washington [D.C.].?o:p>
Blalock and other tobacco growers are concerned that the
push for immigration reform will continue driving up the cost
of their legal guest worker labor force.
Day said that, even though mechanization is making most farming
easier and less labor-intensive, growers ?till must have labor?to
get the tobacco planted, primed and cured.
When asked what this year? increase and projected future
increases could ultimately mean for agriculture in Person
County, Day said, ?here could come a point when farmers say
it costs too much [to produce a crop] and nothing? left over.?o:p>
Tobacco, said Day, brought $10 million into the county? economy
last year, ?ust from farm gate value. That translates to other
businesses here because most agricultural money is spent locally.
It stays here. It stays in the community.?o:p>
Tammy Blalock said the petitions asking state and federal
government representatives to review the cost of using legal
guest workers would be in several locations throughout the
county until Feb. 12.
There are copies at the Farm Service Agency, at Camp Chemical,
Farm Credit, Robert? Service Mart and the store in Allensville,
she said. Anyone interested in signing the petition or in
getting a copy to distribute may reach Blalock at 597-2028.
She said the petition is not just for growers, but that anyone
interested in the future of agriculture in Person County could
show their support by signing.
She plans to send the petition to U. S. Sens. Richard Burr
and Elizabeth Dole; U.S. Rep. Brad Miller, state Sen. Ellie
Kinnaird and state Rep. Winkie Wilkins.
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