Unfortunately, Gov. Newsom has signed AB 2646 (Krell – D). The bill will increase the hourly minimum wage for H-2A and associated corresponding employees in California to $19.75 per hour beginning Jan. 1, 2027. In addition, the hourly wage will continue to be increased each January based on the cost-of-living adjustment for Social Security benefits. This is a massive cost increase to a program that also requires that H-2A employers provide housing and transportation. This wage increase will impose hundreds of millions of dollars in additional annual costs on the agricultural industry and will lead to increased costs of healthy foods. Western Growers voiced strenuous opposition to this bill throughout the entire process.

Every additional mandated cost on agriculture further limits investment, constrains production and contributes to difficult decisions about reducing acreage, scaling back operations or shifting production elsewhere. AB 2646 will add to these existing pressures without addressing the underlying workforce challenges facing agriculture or recognizing the economic realities under which California’s food production system operates.

California is the nation’s leading producer of fresh fruits, vegetables and tree nuts—the very foods that nutrition experts encourage Americans to consume to improve public health and reduce chronic disease. The state’s agricultural diversity, productivity and commitment to high production standards have made California indispensable not only to its own residents, but to consumers across the country. However, net farm income (the key indicator of farm viability) is decreasing in California as operating costs continue to spiral far beyond what farmers in other states and countries experience. Policies that make the production of these foods increasingly difficult deserve particularly careful consideration because their impacts extend well beyond individual farming operations.

While this is not the outcome that we had hoped for, Western Growers has been preparing for this result, including considering legal options. Western Growers staff will be providing regular updates to our membership as we proceed forward.