WASHINGTON – Yesterday, U.S. Senator Tommy Tuberville (R-AL) spoke about the importance of protecting Alabama’s family farms during a Senate Special Committee on Aging hearing. During the hearing, Sen. Tuberville spoke with Zippy Duvall, President of the American Farm Bureau Federation, Jim Alderman, Owner of Alderman Farms, and Aaron Locker, Managing Director of Kincannon & Reed.
Read Sen. Tuberville’s remarks below or watch on Youtube or Rumble.
ON HIGH COSTS IMPACTING AMERICAN FARMERS:
TUBERVILLE: “Thank you, Mr. Chairman, for having and holding this hearing. In addition to being on the Aging Committee, gentlemen, I’m also on the Ag Committee. Let me tell you, the state of our agriculture economy, it’s in dire straits. We’re in trouble. We’ve lost 150,000 farms, [and] 25,000 farmers just in the last five years. Producers have lost over $40 billion dollars in net farm income since 2022 and the current agriculture trade deficit has grown to $49 billion dollars. Despite [this], in my state of Alabama, the producers [are] making bumper crops, they can’t even break even, much less make a profit due to the low commodity prices, high input costs, interest rates and inflation. We can’t keep this up. We can’t do it. The only way we’re going to help our farmers survive is to extend President Trump’s tax cuts, increase references prices, and hammer the heck out of foreign countries on tariffs. It is way out of control, way out of balance. We cannot continue this direction.”
ON FARM LABOR:
TUBERVILLE: “It’s concerning that one-third of our farmers are over the age of 65. And this creates a significant workforce problem for our ag industry as young people are not entering farming. Mr. Duvall and Mr. Alderman, this labor problem increases the need for reforms in H-2A programs. Can you two speak of the struggles of keeping up with H-2A’s Adverse Effect Wage Rate (AEWR) that is over $16 dollars an hour in my state of Alabama—that is double the minimum wage. Can y’all address that, please?”
ALDERMAN: “Yes, sir. I can.”
TUBERVILLE: “Thank you.”
ALDERMAN: “It costs me between $22 to $24 dollars an hour from my H-2A labor. Okay? Minimum wage in Florida, I think, is $12.50. I’m from Florida. And with the rates going up higher—next year they’re going up and they’re talking about going up another dollar—we still have to pay for their housing. We’d like some relief at least we could get the housing back from the people, the H-2A workers who we are bringing in. We spend, you know, hundreds of thousands of dollars every year just for housing for the labor. Plus, we have to bring them in here, pay for their visas, pay for their ride here, their ride back. They’re great labor. They’re good. Without them, we couldn’t harvest our crops. But we can’t compete with the cheap prices of tomatoes coming from Mexico against us. They undercut the price—it’s so cheap. […] The tariffs that we’re talking about is not enough to make any difference. 20%, 17%, that’s not enough to help it. They need a floor of at least what our minimum growing cost is and then put a tariff above that. But try to protect the Florida farmers, the few that are left, not only just in Florida, because at first, it was just Mexico was coming after Florida tomato farmers right after NAFTA. Well, 20 years later, they’re growing pepper and squash and corn and beans and every vegetable we grow all the way up the East Coast, all the way to Jersey and past. They’re going to be competing with all of them, Mexico with all those products. And their labor is, I don’t know, what are they paying $10 dollars a day and we’re paying $25 dollars an hour? There’s got to be some help with the balance of trade. We don’t want the government to give us anything, but get us on a level playing field with Mexico and Canada.”
TUBERVILLE: “Thank you. Mr. Duvall, you want to add to that?”
DUVALL: “Yes, sir. First thing we need to do is for Congress to freeze the AEWR wage rate so that farmers don’t have to take another increase and give us time to work on this H-2A program so that we can make it a workable program for our employees and for the farmer there. If the way we’re going now with the wage rate going up, we’re gonna price ourselves out of farming. We’re not gonna be able to pay the wage rate and stay in the farming and provide those jobs. And it’s gotta be done, it’s gotta be done quickly. And then we gotta work on creating an H-2A program or a program that speaks to all of agriculture. All of agriculture is suffering for the lack of labor, and we need to have year-round workers that’s not capped. We need to be able to control it, but we need to be able to fill those jobs, whether a small, medium, or large-sized farm, and we need to have those year-round workers in those areas like dairy and other places where the work never stops. And then, of course, the regulations that go along with those programs are just so burdensome. You heard him talk about the requirement of having housing—the liabilities that come along with that and the difficulty it is for our farmers to continue to abide by all these regulations because every regulation costs a lot of money to a farmer. And if we’re gonna continue to be able to compete with the world, we gotta be able to make sure that we have a workable program, bring reliable labor here so that we can get the job done. […] How can a young farmer come back to the farm and bring his expertise that he learned in college [and] expand that farm without having the labor force to do it with? That’s one of the biggest limiting factors we have. And that AEWR rate is set by a survey done by USDA that was created over 60 years ago to count employees, not to set a wage rate. The formula is totally […] unworkable, and we need to redo that formula and set a fair wage rate that encourages farmers to hire people and be able to still stay in business and to treat their employees right.”
ON IMPORTANCE OF REPEALING THE DEATH TAX:
TUBERVILLE: “I got one question, Mr. Locker, we’ll start with you. All of you can answer if you want—your thoughts on this. As long as I’ve been up here, I’ve been advocating to permanently repeal the federal estate tax, which is often called the ‘death tax.’ I know it means a lot to farmers. So, Mr. Locker, we’ll start with you—your thoughts?”
LOCKER: “Well, Senator, I think, obviously, you look at modern agriculture today, I mean, it is a massive investment. Even small farms, I mean, if you add up all the assets. And, so, anytime that you want to pass that along to the next generation, it comes at a significant cost and in many cases is cost prohibitive. And so, yeah, doing away with the death tax. And I think we get, you know, bottled in with, you know, other businesses and it couldn’t be farther from the truth in terms of comparable that, you know, when you’re passing along a farm business, it comes with, like I said, a lot of costs, a lot of assets, it takes a lot to run a farm today. And so doing away with the estate, the death tax is the right thing to do. To be able to continue to pass it down to the next generation—otherwise it becomes cost prohibitive.”
TUBERVILLE: “Mr. Duvall, you got it.”
DUVALL: “It’s absolutely one of the necessary things that we need to do. [A farmer] works all his life. I’ve spent my whole life buying back my farm—my daddy had to sell part of it off—my whole life. And if we don’t fix that problem, if we don’t get rid of the inheritance tax, other generations will have to sell a farm and that farm will go out of production, and we will not enjoy the production from those farms. And it has to be done. You know, it’s just like people say, ‘Well, you got a lot of land, you got a lot of wealth.’ You have to have land to farm. It’s just like having a tractor. It’s just like having a car to go to work in every day, even if you’re not farming. It’s something you have to have to do that job. But, show me a farmer that has a retirement plan. It’s tied up in his land. It’s tied up in his land. And when he retires, he’s either got to sell his land or sell it to his children. And then if you pile inheritance tax on top of that, they have to sell part of the farm to be able to continue it. And it is one of the biggest devastating things that can happen to a family farm when you have a death and have to go through that difficult time.”
TUBERVILLE: “Mr. Alderman?”
ALDERMAN: “I agree with you wholeheartedly. It’s double taxation. It shouldn’t be there. You’ve already paid the taxes once. Why are you going to just put somebody out of business or make them sell their business or the farm? It shouldn’t be there. I agree with you.” […]
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.
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