How Well-Intentioned Policies Can Hurt Farmers and Farmworkers
The facts about the overtime provision in the Agricultural Labor Rights & Responsibilities Act (SB21-087).
The U.S. Department of Agriculture (USDA) reported the loss of 141,733 farms and 20 million farm acres nationwide between 2017 and 2022. No surprise, the United States became a net importer of agricultural products in 2023 for the first time since the 1950s.
Colorado farmers have also been feeling the squeeze. Read on to understand the challenges they face and how even one well-intentioned policy can have tough consequences.
Colorado Farms Are Disappearing
between 2017 and 2022
The Agricultural Squeeze
Every year, farmers face higher costs for equipment, supplies, water, energy, and more. And because most farmers cannot set prices, many are struggling to earn back what they invested in their crop, driving them out of business. Among these costs, increased labor expenditures are the biggest threat.
Take a guess!
On average, what percentage of a farm’s production costs go to labor?
Click to reveal →
50%
according to the International Fresh Produce Association
What percentage of Colorado farms has a negative cash farm income?
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65.2%
according to the 2022 Census of Agriculture by the USDA
Farmers Are Already Pro-Labor
Farming is hard work that feeds the world, and our laborers, both foreign and domestic, earn every dollar of their wages. Domestic workers still account for the majority of our labor force, but it’s helpful to look at the experience of foreign workers in the U.S. on temporary H2-A visas to understand how our compensation compares to the countries from which the U.S. imports its cheap fruits and vegetables.
Put Yourself in Their Shoes
Rafael G., a farmworker from Jalisco, wants to provide for his family. He has two choices: (1) work for a local farmer or (2) apply for an H2-A visa to work for a Colorado farmer. What would you choose?
Work in Jalisco
Earn $4.29 / hr with no overtime equivalent in Mexican pesos
Work in Colorado
Earn $15.16 / hr with overtime* + lodging, transportation to and from the United States, transportation to and from the farm, stipends for local purchases, and all costs of their work visa covered
Despite this, there are ongoing efforts to require farmers to increase their compensation, leading to unintended consequences for both farms and the people they employ.
Overtime Pay: A Case Study in Unintended Consequences
2021
2021
The Colorado legislature pushes the Agricultural Workers’ Rights Act (SB21-087) through despite opposition from growers. The bill implements overtime pay of agricultural employees in addition to many other costly regulations for employers.
2021
2023
2023
In the first year of the new requirements, overtime kicks in at 60 hours, stretching their already thin margins thinner.
2023
2024
2024
In the second year, overtime is paid over 56 hours for “highly-seasonal” operations, defined as those that double employees during a 16-week period. Otherwise, and at all other times, overtime is paid over 48 hours, which has a huge impact on farmers and farmworkers. Farmers unable to pay the additional overtime offer fewer work hours for laborers, which reduces production. Domestic farmworkers are forced to work second jobs or work in other states, foreign workers are prohibited from other work. A study from UC Berkeley shows that overtime requirements resulted in farmworkers making an average of $100 / week less than before.
2024
2025
2025
The Colorado Fruit and Vegetable Growers Association (CFVGA) engages with majority party members to highlight the real-world challenges posed by these overtime provisions. These efforts help elevate the issue, leading to meaningful conversations with the Senate Majority Leader, the Governor, and the Speaker of the House, all of whom express interest in revisiting the overtime threshold. Despite an effort to introduce reform, additional groundwork is needed to build consensus and ensure future success.
2025
Advocating for What’s Fair and Feasible
State and federal agricultural regulations must be designed in collaboration with the farmers they will impact. In other states where similar overtime laws passed, legislators included tax deductions to farms to cover the increase in overtime pay. Given Colorado’s current financial situation, this option is highly unlikely. Neither are produce farmers seeking a straight repeal of SB21-087.
CFVGA is advocating for a return to an overtime threshold of no less than 60 hours per week, which benefits farms, laborers, and the state, while ensuring Coloradans can still buy local peaches, potatoes, chiles, melons, corn and more.
To speak up for Colorado’s family farmers and ensure they can keep their farms, visit our advocacy page to learn more.
* Note: when a grower hires a foreign employee under the H2-A program, all the farm’s workers are subject to the wage rate paid to these foreign workers.