GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto House Bill 157 which removes the farmworker exemption from the Virginia Minimum Wage Act.  

 Producers who employ H-2A workers must adhere to the U.S. Department of Labor's Adverse Effect Wage Rate (AEWR), currently set at $15.81 per hour. Even farms that do not employ H-2A workers pay the AEWR to compete with those that do.  

The AEWR is determined using various domestic workers' annual average gross wage rates in a state or region, and therefore the prevailing market wage influences the AEWR.  

Farmers have a unique economic environment with unpredictable weather and fluctuating production costs. Due to federal pricing systems and global market conditions, farmers often lack control over the prices they receive for their goods. Agricultural budgeting and operations are already challenging, and imposing a wage mandate without considering these factors could drive small and medium-sized farms into debt or closure.  

The agricultural sector has thin margins, and this bill will significantly affect the industry. The data from the USDA Census of Agriculture and the Weldon Cooper Center for Public Policy further emphasize the importance of supporting our agriculture industry. The loss of five thousand farms and nearly five hundred thousand acres of farmland in the last five years has dramatically altered our economy and communities.   

Each job created in the agriculture sector simulates 1.6 jobs elsewhere in Virginia's economy. This multiplier effect demonstrates the agriculture sector's significant effect on the overall state economy. This ripple effect helps to drive economic growth and stability across Virginia, making agriculture a crucial component of the state's prosperity.  

The AEWR already materially determines the labor rates. A further wage mandate financially strains farmers, leading to farm closures, job losses, and increased consumer food prices.  

Accordingly, I veto the bill.