If you use H-2A you’re going to want to pay attention to this one. On August 26, a federal judge in the Eastern District of California ruled that the Department of Labor’s H-2A wage methodology — the Interim Final Rule DOL rushed out last October — is unlawful. This is the rule that replaced the old Farm Labor Survey with the OEWS, created the two-tier skill system, and introduced that “housing adjustment” that knocked money off the AEWR to account for free housing.

Here’s the bottom line for now: the current AEWRs stay in effect. The judge didn’t vacate the rule outright — she said pulling it immediately would be too disruptive since AEWRs are the wage floor for the whole program. Instead, she sent it back to DOL and ordered them to come up with a new, lawful methodology. So nothing changes on your payroll today.

What did the court actually find wrong with it? A few things:

• The tier system. DOL split H-2A jobs into two skill levels, but the math didn’t hold up. 92% of H-2A workers landed in the bottom tier, and DOL set that tier’s wage at the 17th percentile — well below market. The court said DOL borrowed that number from the H-1B visa program without explaining why it made sense for a completely different tier structure.
• The housing adjustment. DOL deducted the value of free housing from the AEWR, but employers are still legally required to provide that housing for free. The court called this a direct conflict — you can’t require free housing and then dock the wage to pay for it. It also pointed out the math assumed a 40-hour week, so anyone working more than that would effectively overpay for their own housing.
• Using OEWS data at all. With the Farm Labor Survey discontinued, DOL had to pick something else — the court didn’t fault them for that. But it faulted them for leaning on OEWS data from farm labor contractors, which DOL itself has previously said pays lower wages and isn’t representative of the broader farmworker population, without adjusting for that gap.
• The “greater than 50%” rule. If a worker’s duties span two job classifications, this rule says the whole job gets classified — and paid — at whichever classification the worker spends more than half their time on. The court said this could push employers to shuffle higher-paying duties around so no one technically “primarily” does that work, and DOL never grappled with that risk.

The one thing DOL got right, procedurally, was moving fast to pick a new data source once the Farm Labor Survey went away — the court agreed that was an emergency. But rolling the tier system, housing adjustment, and 50% rule into that same emergency rulemaking, without going through public notice and comment, is where DOL lost.

BACK PAY…. The court ordered DOL to notify employers within 7 days that if you use H-2A labor between now and whenever DOL issues a new, lawful AEWR methodology, you could be on the hook for wage adjustment payments — the difference between what you paid and what the new AEWR turns out to be, retroactive to that window. DOL also has to report back to the court in two weeks with a timeline for the new methodology.

I know a bunch of gins are using H-2A and either have gotten some of their labor or will soon. So…there’s real exposure here if the new AEWRs come in higher than what’s on the books now. We don’t know that timeline yet, and we don’t know what the new methodology will look like. And we don’t know how contracts that are on the books will need to handle whatever comes out. We’ll keep you posted as DOL responds and as the backpay question gets sorted out in court.

If you have questions about how this affects your current H-2A contracts, give us a call.

DSF

This article is from our friends in the Mid South. Tim Price, the current Executive Vice President has announced his retirement next year. The Southern Cotton Growers is taking applications for Tim’s successor. Tim’s not leaving right away and is giving plenty of runway. On a personal note, it has been a pleasure to work with Tim. His leadership will be missed.

We were asked to post the following announcement. If you know a possible candidate, please pass this along to them.

DSF

On March 31, 2027, Tim Price will officially transition from his role as Executive Vice President to a new role of Senior Advisor to the Executive Committee.

Tim will serve in this role as an advisor to leadership for one calendar year.  On March 31, 2028, Tim Price will complete his time as Senior Advisor to the Executive Committee.

We are actively seeking qualified candidates for the Executive Vice President position. Below is the job description and instructions for submitting a resume.  Please share this information with any interested parties.

Southern Cotton Ginners Association
Executive Vice President
Posted: August 1, 2026

Job Summary
The position of Executive Vice President of the SCGA is vital to the health of the Mid-South cotton industry. We seek a proactive, innovative leader whose primary focus will be the financial, operational, and organizational health of SCGA and its member gins. In addition to this primary focus, the Executive Vice President will also help SCGA leadership establish a vision for the Mid-South Farm & Gin Show and with the assistance of staff, leadership, and partners, execute a successful and meaningful annual event.

Job Description

1. Serve as the Association’s chief of staff.
2. Develop and support the Association’s membership.
3. Maintain a working knowledge of cotton ginning, production, and industry developments.
4. Keep Association leadership and members fully informed of Association activities.
5. Keep Association leadership and members fully informed of current and future federal and state regulatory issues.
6. Serve as a liaison between the Association and other agricultural organizations.
7. Develop and maintain necessary political and institutional relationships that benefit the Association.
8. Implement the programs and policies adopted by the Board of Directors.
9. Recommend new programs for consideration by the Board of Directors.
10. Employ and supervise Association staff.
11. Negotiate contracts on behalf of the Association in accordance with the bylaws.
12. Maintain Association records and make them available to the Board of Directors.
13. Manage all finances and retains of the Association, subject to approval by the Board of Directors.
14. Recommend committee appointments to the President and assist committee chairs in pursuing committee objectives.
15. Collect Association Dues
16. Oversee the production of the Mid-South Farm & Gin Show.
17. Develop strategies and make recommendations to the Board of Directors regarding improvements to the Mid-South Farm & Gin Show.

The Executive Vice President reports to the Executive Committee, which is governed by the Board of Directors.

Candidate Qualities

1. Cotton industry experience preferred but not required.
2. Strong communication and active-listening skills.
3. Financial literacy and strong attention to detail.
4. Ability to organize and lead a team comprised of both paid staff and volunteers.
5. A growth-minded approach across all areas of responsibility.

Application Information
Qualified candidates should submit a resume and cover letter to Andrea Steadman at andrea.steadman@southerncottonginners.orgor contact the office by phone at (901) 947-3104.

Deadline to submit resumes is September 4, 2026

One of the issues we’ve gotten a number of calls for in the past several months is regarding emails or letters from USDA Warehouse Division regarding BMAS Reports and the 4.5% shipping standard. We’ve been working the National Cotton Council and USDA on this issue and we’ll have more detailed comments at our state meetings in the next few weeks.

In the mean time, one of the issues that warehouse operators have mentioned to me is that their listed capacity is much greater than the bales they’ve been storing. Your 4.5% flow requirement is based off this larger capacity. Our reduced acres over the past several years have reduced the maximum number of bales many warehouses have or will have during the year but are being held to a much higher shipping standard than actually ginning or storing.

Ian Edmonds and the staff at USDA has worked with the NCC Staff to put together the attached document. It explains the process for reducing (or increasing) your capacity at the warehouse. Remember the effective capacity is the higher of your licensed capacity or your highest bales stored.

Please refer to the attached document. Click on the picture and download the page for instructions on updating your capacity with the warehouse division.

DSF

It is mid-summer in the Southeast and no surprise to anyone it is hot. Last week was hot, this week will be hot, and I’ll almost bet next week will be hot as well. The graphic to the right shows the heat index is expected to be 95° – 105° for the week of July 6^th. Please take the time to remind employees about the importance of heat safety.

Heat illness is a serious occupational hazard that can affect employees who work outdoors or in hot indoor environments. High temperatures, humidity, physical exertion, and inadequate hydration can overwhelm the body’s ability to regulate its temperature. Heat-related illnesses can reduce productivity, cause serious health complications, and may even be fatal if not recognized and treated promptly.

Employers and workers share responsibility for preventing heat-related illnesses. Through training and providing resources employees can be protected from heat-related illnesses

Employers Should:

• Provide cool drinking water that is easily accessible.
• Schedule physically demanding tasks during cooler parts of the day whenever possible.
• Ensure regular rest breaks in shaded or air-conditioned areas.
• Train employees and supervisors to recognize the signs and symptoms of heat illness.
• Develop emergency procedures for responding to heat-related emergencies.
• Allow new and returning workers time to gradually adjust to hot working conditions.

Workers Should:

• Drink water frequently, even if they are not thirsty.
• Wear lightweight, breathable clothing whenever job duties allow.
• Use cooling towels, hats, and other protective equipment as appropriate.
• Take scheduled rest breaks.
• Report symptoms of heat illness immediately.
• Watch for signs of heat stress in coworkers and encourage them to seek help if needed.

Common Types of Heat Illness

Heat Cramps

Heat cramps are painful muscle spasms caused by the loss of water and salts through excessive sweating. They commonly affect the legs, arms, or abdomen during or after strenuous work.

Heat Exhaustion

Heat exhaustion develops when the body loses excessive fluids and electrolytes. Common symptoms include:

• Heavy sweating
• Weakness or fatigue
• Dizziness or lightheadedness
• Headache
• Nausea or vomiting
• Cool, pale, clammy skin
• Rapid heartbeat

If left untreated, heat exhaustion can progress to heat stroke.

Heat Stroke

Heat stroke is a life-threatening medical emergency. Warning signs include:

• Body temperature above 104°F (40°C)
• Confusion or unusual behavior
• Loss of consciousness
• Seizures
• Hot skin (with or without sweating)

Call emergency medical services immediately if heat stroke is suspected.

First Aid

For Heat Exhaustion

• Move the affected worker to a cool or shaded area.
• Loosen or remove unnecessary clothing.
• Provide cool drinking water if the person is fully alert.
• Apply cool, wet cloths or use fans to lower body temperature.
• Seek medical evaluation if symptoms persist or worsen.

For Heat Stroke

• Call emergency medical services immediately.
• Move the person to a cool location.
• Begin rapid cooling using cold water, ice packs, or cool wet towels while waiting for emergency responders.
• Do not give fluids to someone who is unconscious or confused.

Key Safety Reminders

• Hydrate before, during, and after work.
• Take breaks in cool areas.
• Wear appropriate clothing for hot conditions.
• Never ignore early signs of heat illness.
• Look out for coworkers and report concerns immediately.
• Know the workplace emergency response procedures.

Heat illness is preventable when proper precautions are followed. By staying hydrated, recognizing early warning signs, taking regular breaks, and responding quickly to symptoms, employers and employees can work together to create a safer workplace. A strong culture of heat safety helps protect workers’ health, reduces injuries, and ensures everyone returns home safely at the end of the workday.

OSHA Heat Illness Prevention Campaign: https://www.osha.gov/heat

OSHA Heat illness Prevention Training Guide: https://www.osha.gov/sites/default/files/osha_heattraining_guide_0411.pdf

OSHA Heat-exposure:  https://www.osha.gov/heat-exposure

OSHA Fact Sheet: https://www.osha.gov/sites/default/files/publications/3431_WKSITEPOSTER_EN.pdf

OSHA posters:  https://www.osha.gov/publications/bytopic/heat-illness-prevention

OSHA Heat Safety Tool: https://heat.gov/tools-resources/heat-safety-tool-app-occupational-safety-and-health-administration-osha-niosh/

The American Cotton Producers is hosting a One Big Beautiful Bill Act (OBBBA) Payment Limitation and Payment Eligibility Provisions Webinar on Wednesday, July 1, at 10:00 a.m. CT. Since the June 2 USDA release of the OBBBA payment entity rule changes, NCC staff has received numerous questions from producers about the impacts on the structure of their farm businesses. 

Grant Ballard, a partner at the Firm of Ark Ag Law, PLLC, will outline the new rules and provide key insights to help growers better understand how these changes could affect their operations. Firm Ag Law, PLLC, maintains a nationwide practice representing agricultural producers and other rural businesses, with a focus on assisting producers with compliance with regulations and rules promulgated by USDA’s Farm Service Agency, Natural Resources Conservation Service, and Risk Management Agency.

Cotton interest organizations are welcome to share this announcement with their members.  Participants must register via the link below to join the webinar. 

American Cotton Producers OBBBA Payment Limitation and Payment Eligibility Provisions Webinar Registration.

https://us06web.zoom.us/webinar/register/WN_xj3KpHcITKSYKmrHR687bQ

Please note that once registered, participants will receive a webinar link from the U.S. Cotton Trust Protocol. The ACP is using the Trust Protocol account to host the webinar to accommodate a high volume of participants.  

We hope you can join.