Statement of Harry B. Yates

Before the

House of Representatives Committee on Agriculture

A hearing to

Review the Labor Needs of American Agriculture

October 4, 2007

I would like to thank the committee for holding this important hearing
on Agricultural Labor. My name is Harry Yates. I farm and live in
beautiful Boone, North Carolina. I began growing trees 32 years ago in
the mountains of western North Carolina. I have served the Christmas
Tree industry as President of the North Carolina Christmas Tree
Association, and as a Member of the National Christmas Tree Association
Board of Directors.

This is my 10th year using H2A and I employ 7 workers for 9 ½ months and
3 to 6 additional workers for the Christmas tree harvest season.

Christmas trees are an extremely labor intensive agricultural crop. Each
tree receives 8 to 10 visits per year from a farmworker to complete
various treatments. This occurs each season during the 8 to 10 year life
of the tree from planting to harvest. Each activity requires physical
labor in challenging geographic and climatic conditions. These
challenges, along with the seasonality of the job mean that the
Christmas tree industry needs temporary, seasonal workers.

I made the decision 10 years ago to participate in the H2A program
because it was impossible to find legal workers seeking agricultural
employment and I strongly believe that workers should be properly
documented. However, when I made my decision to go H-2A, little did I
know that I was putting myself at a serious competitive disadvantage in
the industry.

The real Christmas Tree industry faces serious economic challenges with
Chinese produced artificial trees. Labor is the single largest
production expense. I'm one of the few growers who use the H2a program
-- most don't use it because it is too expensive, too litigious and too
burdened with regulations. For example:

1.  By using H2a, I have to pay almost \$1000.00 a year per man, which
    covers visa fees, transportation, association costs and other
    government fees.

2.  By law, the US Department of Labor tells me I have to pay an
    "Adverse Effect Wage Rate", which is \$9.02 per hour for 2007. DOL
    has raised this wage rate 76% over the last 16 years. I know now why
    they call it the "Adverse Effect" wage rate -- because it certainly
    is Adversely Effecting" my family farm. Non H2a growers pay around
    \$7.50 per hour!

3.  By law, I am required to provide (free of charge) government
    inspected housing (including all utilities and repair costs) and all
    local transportation. Non H2a growers don't have to provide these
    benefits, their worker's provide it for themselves -- just like
    American workers have to do every day!

4.  By law, I have to pay for workman's compensation insurance for all
    employees.

> When you total these expenses my labor cost is at least \$14.00 per
> hour and climbing every year (and again my competitor pays around
> \$7.50 per hour). It is extremely difficult to farm profitably at
> these costs.
>
> It is truly contrary to the [American]{.underline} way that the
> farmers who do things the legal and proper way are punished
> economically. We should be heralded, not sued.
>
> What should Congress do to make the H2A program more workable for Ag?

1.  Entry-level wages for first time workers should be prevailing wage
    and flexibility should be allowed so that loyal, long-term employees
    can be rewarded with a higher pay rate set by the farmer.

2.  Growers and workers should be required to resolve legal issues
    through mediation and arbitration before going to court. This is
    nothing new -- Americans sign these type of contracts every day, why
    can't H2a workers.

3.  The b[ureaucratic]{.underline} process at three federal agencies
    (Labor, Homeland Security, the State Department) must be streamlined
    & simplified. Given the current delays with only 50,000 H-2A workers
    nationally, drastic structural reforms must be made if the program
    is to provide upwards of 1,000,000 workers per year in the future.

> I appreciate the H2A program and the continuity/stability it provides
> on my small family farm. But, I understand why so many growers are
> afraid to use this program - it is too expensive, too complicated, too
> slow, and too likely to land you in court. Please fix it with true
> prevailing wage, required mediation and a streamlined process.
> Agriculture, our nation's food supply, and in fact the very security
> of our nation depends on Congress getting this right.
>
> Thank you,
>
> Harry B. Yates.