Western Growers Calls Out CA Governor for ‘Economically Stupid Mandate’

Among the scores of new laws California Gov. Gavin Newsom just signed into law, AB 2646 tops the list of concerns for Western Growers. The new law establishes a minimum hourly rate of $19.75 for certain agricultural workers beginning Jan. 1, 2027, with an automatic cost-of-living adjustment each January thereafter.

Western Growers President and CEO Dave Puglia issued a statement in response to the new legislation. It reads as follows:

“California families are burdened by the nation’s highest cost of living and yet we now have another new economically stupid mandate imposed on the state’s farmers in the form of AB 2646. None of our state’s farmers can simply absorb this new higher wage mandate. Some larger family farm businesses may be able to pass along this new labor cost to their grocery chain customers, who will pass it on to consumers already struggling with affordability challenges. Most farmers, however, cannot absorb or pass along this dramatic wage increase. They have been beaten down by California’s higher operating costs and watched their grocery chain customers choose farmers in other states and countries where the same fresh foods can be grown at a lower cost.

“Next time you hear people in Sacramento talk about their love of California’s farms and the wonderful food we grow here, remember that we have lost nearly 30% of our family farms in the last 25 years. That is because of the economic injuries that have been caused by foolish public policies. Californians are proud of our state’s farmers. They deserve better from Sacramento.”

Back in February when then AB 2646 was introduced, Jason Resnick, Senior VP and General Counsel for Western Growers, posted a blog about why the bill matters to H-2A employers. CLICK HERE to dig deeper into the impacts of AB 2646.