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It continues to remain the number one business across the state. And we've got a pretty significant story this morning out of the federal government that deals with how farm worker wages are set. The United States Department of Labor has rolled out a new rule changing how farm worker wages are calculated. The move is meant to pay fairer wages for workers and more predictability for farmers. This is updating a decades-old method with some more accurate state-level data.
Proponents say it will help stabilize grocery prices and the cost that farmers face to grow the nation's food supply.
However, farm groups are saying that Congress still needs to make these formulas permanent so that growers and those in that industry can plan on these formulas and these numbers being the same in the future. Earlier this month, the Department of Labor issued its final interim rule on the Adverse Effect Wage Rate, AEWR. This amends regulations on the certification of agricultural labor or services that H2A farm workers perform. The AEWR Agricultural Labor Coalition is now urging Congress to make those reforms permanent. The new rules do replace the United States Department of Agriculture's Farm Labor Survey with the Bureau of Labor Statistics Occupational Employment and Wage Statistical System.
According to the press release from the federal government, the BLS data considered both skill level and cost of housing to and for those employers. Michael Granger, who is the executive director of the North Carolina Sweet Potato Commission, said in a press release and said speaking on behalf of thirty-four other agricultural organizations, This proves that the federal government agencies and cabinet can provide solution-driven results for constituents. But Congress must also act to make things more permanent so farms and ranches can plan and future-proof their organizations as the business and trade continues to shift and adapt. We applaud the current work to get this far, but we can't run farms or feed families on short-term fixes that change with every administration. The coalition calls on Congress to establish a long-term market-based AEWR framework that offers predictability for growers while upholding protections for workers here in the United States.
This would enable growers to plan years in advance for input, crop rotation, trade commitments, and other things, rather than making decisions on a season-by-season basis, which they note would contribute to restoring stability in rural communities that form the foundation of the nation's economy. That's all according to the press release there from Michael Grenger. Comparing the instability created by temporary labor regulations and the fallout of the current government shutdown, the coalition asserts that both the investments that are ongoing here could erode confidence and put national interest at risk of long-term harm. Kelly Lester, who is a policy analyst over at the John Locke Foundation, told the Carolina Journal, quote, This revision to the H2A wage formula is a much needed modernization. By shifting from the outdated farm labor survey to the BLS data, this distinction in wages by skill level, this rule will help better align pay with the actual duties performed on farms.
It also incorporates a housing adjustment to acknowledge non-cash benefits that can be offered to workers. Taken together, these changes reduce distortion, lower undue cost burdens on farmers, and create a more transparent market-based wage system. Over the past three years, growers in a variety of industries in the agricultural sector have experienced a massive surge in labor costs, and in some cases it's been more than 30%. That has resulted in reduced planting, a shift of production overseas, and of course higher prices for consumers. And you have been paying those and seeing some of those impacts over at the grocery store.
In an exclusive comment to CarolinaJournal.com, once again, the executive director of the North Carolina Sweet Potato Commission said, quote, Sweet potatoes are not only North Carolina's state vegetable, it's also recognized as one of its signature crops. Our state produces nearly 65% of the nation's supply, but labor costs have become one of our biggest challenges. The Department of Labor's interim final rule is an important step forward in making the system more fair and predictable for growers. But long term success depends on Congress enacting permanent reforms. Our farms and family farms so that they can't plan for future crops, labor needs, or export commitments on short-term rules.
North Carolina agriculture needs stability to stay competitive and maintain the positive economic impact of more than $111 billion statewide as we work to continue feeding families here and around the world. The AEWR Agriculture Labor Coalition represents 34 organizations across seven states, three national associations, seven state advocacy groups, and 25 different unique crops. These organizations collectively account for more than $824 billion in agricultural economic impact and support over 6 million jobs across those seven states. Concerns have been raised that the agricultural workforce is being impacted due to ongoing immigration discussions here in the federal government and ongoing deportation efforts by the Trump administration. A recent federal registrar filing reads, quote, U.S.
agricultural employers need a legal and stable workforce to support their farming operations, and persistent labor shortages as well as increased steam production costs will only harm U.S. competitiveness, threaten food production, drive up consumer prices, and create instability within rural communities. Without prompt action, agricultural employers will face severe labor shortages, resulting in disruption to food production, higher prices and reduced access for U.S. consumers, particularly to fresh fruits and vegetables. Further, the department concludes that qualified and eligible U.S.
workers will not make themselves available in sufficient numbers, even at current wages, to fill some of the significant labor shortages within the agricultural sector. Despite comments from USDA Secretary Brooke Rollins earlier this year that the workforce would be 100% American, experts assert that Americans lack both the skills and the willingness to fulfill some of these jobs. Kelly Lester from the John Locke Foundation continued and said, Americans have a strong history in agriculture, but the reality is less than 1% of domestic workers choose to work in agriculture. While machines can help with some problems in agricultural labor, many crops, such as sweet potatoes, must be harvested by hand due to setbacks in the accuracy of harvesting technology. Many hands are needed in order to make this happen.
Unless we can make agricultural preferable to steadier year round jobs like construction, I doubt that the American labor supply will be enough to meet the ongoing agricultural demand. A recent report called Harvest on Hold is now available from the John Locke Foundation, and it examines the labor shortage in the agricultural industry and proposes policy solutions to address it. The report acknowledges the high cost of the H2A visa program as one of the challenges that lead to the ongoing labor shortage within the farming sector. And as was echoed by a couple of individuals in this story, These labor shortages, the unpredictability, and some of the nature in which these rules are being made and have been made for a significant amount of time, it is creating a grand amount of uncertainty within the agricultural industry. And with that uncertainty, with last-minute changes and some of the other situations that revolve around that, that is costing farmers a significant amount of money.
It is eating into their bottom line. And of course, for consumers, whether here domestically in North Carolina, some of our international trade partners, or anywhere across the country that is buying agricultural from North Carolina, that is having an immediate impact on some of those prices. We've got some additional details on this story this morning over on our website, CarolinaJournal.com. That headline story there, DOL, that's the Department of Labor, issues a new rule on how farm worker wages are set. You can read those details at CarolinaJournal.com.
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It's 521. Welcome back to the Carolina Journal News Hour. News Talk 1110-993WBT. We are getting some new information on a pretty big political story that we have been tracking this week across the state. If you've been with us all week, earlier in the week, we learned from the Republican-led General Assembly, both House Leader Destin Hall and Senate Majority Leader, or Senate President, I should say, in Phil Berger, that Republicans do intend on redrawing congressional districts as they are set to be back in Raleigh on Monday.
And well, we did get a copy of a new proposed map that was produced yesterday by the General Assembly. Republican lawmakers did unveil those new maps on Thursday, which are aimed at strengthening the GOP's hold on the United States House. The proposed redistricting plan would eliminate the state's lone competitive district, which Democrats narrowly won in 2024 and potentially reshape it into one that is more favorable for Republicans as we head into the 2026 midterm elections. Legislative leaders are expected to take up a vote on the proposal when they return to Raleigh. There is going to be a couple of committee meetings on Monday in which the redistricting committees will vote and determine whether to move forward with these maps or not.
As this move aligns with a broader national trend, as both parties and state-controlled legislatures are taking a look at redrawing maps, some already are doing so. States like Texas, California has got a proposition on their special election coming up later this year for that as well. As both parties, Republicans, try and hold control of the United States House and Democrats try and flip it. North Carolina currently sends 14 members to Congress, 10 Republicans and four Democrats.
However, lawmakers in Raleigh under these new lines, but our hope is. And believing that that number can be changed to an 11-3 GOP advantage.
So, the two changes in this district are between District 1 and 3. A couple of counties I'm just going to rattle off here: Wilson, Wayne, Green, and Lenore counties would be moved from where they currently stand in District 1 into District 3, and other counties, including Craven, Belford, Pamlico, Carteret, Hyde, and Dare counties, would move from a District 3 into District 1. The House First House District is in the northeast corner of the state. It runs all the way from the Virginia border down the outer banks, and that is what those new maps are looking like here that lawmakers did propose yesterday. It is going to be a very interesting process to unfold and watch in Raleigh next week.
We have had continued analysis this week, a great conversation just a couple of days ago with Dr. Andy Jackson from the John Locke Foundation. If you missed any part of that, I encourage you to check that out on our Carolina Journal YouTube channel or on any of your favorite podcast apps on the Carolina Journal News Hour. We will continue the analysis as we head into next week and see exactly what lawmakers will do. This is, again, said to be a major political story.
We'll keep you up to date with all of the details right here on the Carolina Journal News Hour and, of course, over on our website, CarolinaJournal.com. Turning our attention to some other state news this morning, not a single application for a homeowner buyout through the Federal Emergency Management Agency's Hazard Mitigation Grant Program, known as the HMGP, that has been submitted by Western North Carolina homeowners affected by the unbelievable amounts of devastation and destruction from Hurricane Helene, have been approved. This is according to a new post on social media from Democrat Governor Josh Stein, all of this ahead of an October the 31st deadline to apply for that. The governor took to X yesterday morning to say in part: quote, hundreds of homeowners in Western North Carolina cannot move on with their lives because FEMA has not approved a single application of its homeowner buyout program since Hurricane Helene hit last year. That's simply unacceptable.
You are well aware of Hurricane Helene and some of the details. It struck western North Carolina in late September of last year, causing an estimated $60 billion in damage. As we look at this federal program, it is designed to reduce or eliminate future damages and losses following a disaster and is managed by the North Carolina Department of Public Safety's Division of Emergency Management. Property owners can receive assistance with mitigation methods such as structural elevation, structural reinforcement and buyout of damaged properties of which there are dozens, if not hundreds, in Western North Carolina. At a joint Legislative Government Operations Subcommittee hearing last month, there was a general consensus on one issue surrounding the recovery efforts from the storm.
The Federal Emergency Management Agency and ongoing bureaucracy that has been a huge hindrance and not a help to not only governments but individuals living in Western North Carolina. Matt Calabria, the director of the Governor's Recovery Office for Western North Carolina, or GROW NC, criticized FEMA's grant program, which is designed to buy out damaged homes. The federal government pays 75%, and the state picks up the remaining tab at 25%. that hazard mitigation grant program Requires authorization on the front end with the United States, with the U.S. Homeland Security Secretary Christy Noam instituting a signature requirement for all expenditures over $100,000.
Calabria noted that applications for home buyouts were submitted to the federal government in February, and not a single home has been approved by that program to date. Collabria also said that the HMGP program doesn't announce the amount of funding it will receive until a year out. He told lawmakers at that government hearing, quote, I know you've got to balance your budget, pass a budget by the end of June every year, and they've got Swiss cheese tax bases for the reasons that we talked about.
So they don't know where their fund balance is going to look like. They don't know what their debt load is going to look like. They don't technically know whether they're going to get reimbursed and how much. And yet they've got to set tax rates and make a plethora of other decisions. They don't know what their tax base will look like because of some of these HMGP delays.
And on top of that, they've got to worry about their bond rating, which they would have had to worry about anyway when they're talking about building schools or repairing facilities and that sort of thing. County officials also spoke about their frustration with FEMA at last month's meeting. Avery County Commissioner Dennis Aldridge, who spoke at the hearing, said, quote, our biggest obstacle moving forward is the lack of clarity and consistent guidance from FEMA. Every time we get close to the finish line, they change the goalposts. We're willing to connect the dots, just don't keep moving the dots.
And every time that we get close, something changes. Stephanie McGrath, who is the Deputy Secretary of the Department of Commerce's Division of Community Revitalization, also spoke at the hearing and said that the first house under the GROW NC program should be completed by January, noting that there has been a lot of red tape with the federal government. This story, unfortunately, is one that is not unique and not unexpected in Western North Carolina. There have been calls for years about some of the struggles and frustrations with FEMA, the Federal Emergency Management Agency, the amount of bureaucracy, bloat, and red tape that exists within that organization. And unfortunately, once again, we are seeing it affecting our friends and neighbors out in Western North Carolina.
We've got some additional coverage on this story this morning over on our website, CarolinaJournal.com. The headline there, homeowners left waiting as FEMA yet to approve Helene buyouts. Again, those details over at CarolinaJournal.com. Gain Superflinks are here. here to take your laundry to the next level.
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It's 5:37. Welcome back to the Carolina Journal News Hour, News Talk 11:10, 99.3 WBT. Don't forget, if you miss any portion of our show, weekday mornings here, 5 to 6 a.m., you can check out the Carolina Journal News News Hour podcast. That's available in all of your favorite apps. Just search for the Carolina Journal News Hour, tap that subscribe or follow button, and you'll get a new program delivered each and every weekday morning.
You can also watch the show live and after the fact on our Carolina Journal YouTube channel. It's the Carolina Journal News Hour podcast. Download and subscribe now. We are covering a brand new report from the state auditor's office this morning here on the Carolina Journal News Hour as it relates to SNAP, federal food benefits that many individuals across the state of North Carolina and the nation receive. To walk us through some of the details on this report and some major implications for individuals that do rely on federal assistance for food, Teresa Opaca, CarolinaJournal.com, joins us on the news hour.
Teresa SNAP, it used to be called food stamps, now snapped, is something that many North Carolinians use as a lifeline to put food on the table for their families. And this new report from the auditor's office shows some alarming stats in some counties across our state. What are you looking at in this report? Yes, Nick, they sure do. Thanks for having me this morning.
So, Auditor Bullock's report has about approximately 83, over 280,000 payments in Supplemental Nutrition Assistance Program or SNAP benefits. They were delayed in North Carolina from 2021 to 2024. And that's pointing the audit that he released. As you mentioned, SNAP provides benefits to low-income families and individuals to meet their food budget, including getting access to nutritious food.
So it's not just candy and junk food, that's also fruits and vegetables, things that are really healthy for them.
So it's very important that this is This is rectified, and it's been going over for the past couple of years. Just to give you another snapshot for North Carolina, this is according to the Center on Budget and Policy Priorities. It's about 13% or over 1.4 million lower-income individuals and families in North Carolina received assistance through SNAP. in 2024.
So yeah, it's you know, quite a bit of families and individuals who get this. This is a lifeline for them. If they didn't have this, there would be severe problems with hunger. They call it, you know, they call it different food deserts or food insecurity, all the different words and phrases these days. But basically, people would be starving if they didn't get some of this.
So it was a pretty important report that Auditor Bolick released this week. Teresa, as I read through the report and understand some of the details, while SNAP is a federal program, it is the responsibility, at least in North Carolina, can't speak for every other state, but it is the responsibility of local governments to administer those programs across the state of North Carolina. And a couple of the major metropolitan areas across the state are having some alarming figures as it relates to the amount of missed payments or payments that are delayed and not given on time to individuals that, as you noted, are relying on some of these federal benefits. Right. And in this audit Auditor Bollock's office identified seven counties with the worst performance in meeting those federal timeliness standards.
And they include Davidson, Edgecombe, Wake, Mecklenburg, which is, of course, Charlotte area, Pitt, Cumberland, and Stanley counties. They issued between 14 and 25 percent of benefit payments in an untimely manner. You can go through the list at Carolinajournal.com. We have specific figures, but that's quite a bit. It's like, well, it.
You know, in their response, DHH has asked the Department of Health and Human Services division for this, that, you know, well, we met. I'm paraphrasing. We met most of the guidelines, like we met 95% of what we should have. But that's a significant number otherwise of uh not meeting it. And the different households and people who who did not receive these in a timely fashion maybe did go hungry for a l little length of time before that payment was made up.
Yeah, and you talk about that list of some of those top counties in Davidson. I mean, 25%, Teresa, one in four of the payments meant to be sent out in a certain time period based on those federal guidelines were not. And then as you continue down that list, you look at our two more populous counties throughout the state, Mecklenburg, which hosts the city of Charlotte, Wake hosting the city of Raleigh. I mean, these are the two largest cities in the state of North Carolina.
Some big problems there.
Now, obviously, Teresa, you've got larger populations in those areas, so it shouldn't be a surprise that there's more responsibility and more individuals potentially taking advantage of the program. But these delays are percentage-based. I mean, you look at some of the numbers out of Davidson County, the number one in the list. They've only got 61,000 people that are eligible. That's a relatively small county in comparison, and they've got issues as well.
So it's a percentage problem. Yeah, it most definitely is. And like you say, there's no distinction between the larger areas versus Davidson County with a smaller population.
So it's definitely a percentage problem and a problem within those county departments for that. What did we learn from State Auditor Dave Bullock? Obviously, some of the data, some of the numbers in this report the auditor typically provides and what you would expect that you'd hope that the auditor would provide is, Teresa, some recommendations, some feedback. How do we correct this course so that it doesn't continue to happen? What did State Auditor Dave Bullock have to say?
Sure.
So skimming over some of the findings, the one finding period from the January first, twenty twenty one through December thirty first, twenty twenty one, auditors found generally snap Benefit payments were made in a timely manner. About 98% of benefits were paid in accordance.
However, USDA at that time waived a lot of the different guidelines because it was during COVID.
So that was one reason why that was a little bit off, it wasn't too bad. But then they started to tumble from January 1st, 2022, through December 31st, 2024. You saw more late payments, and that's because the requirements came back into play.
So, obviously, recommendations he had as a system to monitor the timeliness, of course, of county SNAP benefit payments, including enforcing the corrective actions of the counties issuing those untimely benefits and also giving ready access to data to effectively administer and monitor those benefits. That includes the extent of how late or untimely SNAP benefits and the amount of SNAP benefits paid were untimely.
So, some, you know, we have more of a further. Breakdown more details in our report, but that was the recommendations that Auditor Wollock's office had. And Teresa, we haven't seen this yet, but there's always the risk when you're not meeting some of these federal guidelines and standards. In this case, as we talk about SNAP, the way in which and the timeliness of which these payments have to go out, you potentially risk, if you're a county or a state that has a large issue with this, you potentially put some of those federal funds at jeopardy if you're not able to meet some of those guidelines that are being set up in Washington, D.C. That is correct.
In fact, I think there is some talk about this happening. I don't know if it's specifically, it's not related to this audit, but I think a lot of this they said is going to be coming due into 2028. It's a little late of a figure, but I did see a report on that.
So, yeah, this definitely does have a cumulative effect on, you know, hey, are you going to be, you know. Hurt by all of this late reporting? And the answer is most possibly yes.
So, yeah, that's something to keep an eye on as well. And again, when we do all these reports, whether it's hurricane recovery, whether it's something like SNAP, the people who get hurt, it's not the people who are in charge of all this, the people who really truly need the help are the ones that get hurt with all of this. Yeah, it's a very unfortunate circumstance. Teresa says you noted there's a lot more charts, data, figures, numbers from this report from the State Auditor's Office. Where can folks go and read some of those details this morning?
Sure, they can head on over to CarolinaJournal.com. We appreciate the update. Teresa Opeka joins us on the Carolina Journal News Hour. Good morning again. It's 5:52.
Welcome back to the Carolina Journal News Hour, News Talk 1110-993 WBT, recapping one of our big stories across North Carolina and the nation this morning. As the United States Department of Labor has rolled out a new rule change on how farm worker wages are calculated, according to the department there, they say that the move is meant to make prices more fair and workers more predictable, and worker wages more predictable for farmers. This is updating a decades-old method with more accurate state-level data. Proponents say it will help stabilize grocery prices, that's great news for everybody, and costs that farmers face to grow the national food supply.
However, some of the groups that are applauding the DOL for this say that Congress needs to get back to work and make sure that these formulas stay permanent so that farmers can plan. For the future, the new rule replaces the United States Department of Agriculture's farm labor survey with some new data from the Bureau of Labor Statistics. According to a press release, that BLS data considers new things like skill level and cost of housing to an employer that were not previously calculated. According to Michael Granger, who is the executive director of the North Carolina Sweet Potato Commission, speaking not only on behalf of that organization, but 34 other agricultural groups, says, quote, this proves that federal government agencies and the cabinet can provide solutions driven to results for constituents. But Congress must also act to make things more permanent so farms and ranchers can plan and future-proof their organizations as the business and trade continues to shift.
We applaud the current work to get this far, but we can't run farms or feed families on short-term fixes that change with every administration. That coalition of 34 organizations is calling on Congress to establish a long-term market-based framework that would offer predictability for farmers and growers while upholding protections for U.S. workers. According to the details in this press release, that would enable growers to plan years in advance for the costs like input. deal with things like crop rotation, trade commodities, and other situations, rather than making decisions on a continued season-by-season basis, which they note continues to contribute to some rises in prices.
They noted that having this be more stable would restore stability in rural communities that form the foundation of the national economy, according to a press release. Comparing the instability created by temporary labor regulations and the fallout from current government shutdowns, the coalition asserts that. They both hinder investment, erode confidence, and put national interests at risk of long-term harm. Kelly Lester is a policy analyst over at the John Locke Foundation and told the Carolina Journal, quote, this revision to the H2A wage formula is a much needed modernization. by shifting from the outdated Farm Labor Survey to the Bureau of Labor Statistics data and distinguishing wages by skill level, the rule better aligns pay with actual duties performed.
It also incorporates a housing adjustment to acknowledge non-cash benefits. Taken together, these changes reduce distortion, lower undue cost burdens on farmers, and create a more transparent market-based wage system. And this has been a growing issue now for quite some time. Over the past three years, those in the agricultural industry have experienced a surge in labor costs, in some cases more than 30%. That has resulted in reduced planting, a shift of production overseas, as well as higher prices for customers, according to details.
Taking a look at some of the other information in this, despite comments from USDA Secretary Brooke Rollins earlier this year about the workforce being 100% American-backed, there are growing concerns with immigration policies within the United States and how that could impact the agricultural workforce as well. And according to some of the details that we are tracking, again, this H-2A visa program for farm workers, farmers across the state and the nation are asking for some stability there. This is a pretty interesting story, and it could have a major impact not only on the agricultural. Business, which is the largest in North Carolina, but your pocketbook as you head to the grocery store. You can read some additional details this morning by visiting our website, CarolinaJournal.com.
That's going to do it for a Friday edition of the Carolina Journal News Hour. WBT News is next. Followed by Good Morning, BT. We're back with you Monday morning, 5 to 6, right here on News Talk 11.10 and 99.3, WBT.
