ALBANY, N.Y. – Gov. Andrew Cuomo's proposal to raise New York's minimum wage to $15 an hour is praised by many.

But the New York Farm Bureau says that kind of hike would plunge state farming businesses into the ground and cost an estimated $500 million in additional annual labor expenses.

Steve Ammerman, the bureau’s public affairs manager, says markets determine the price of agricultural products, not farmers, who wouldn't be able to adjust their prices if their expenses increased because of a raise in the minimum wage.

"What our dairy farmers receive from milk is dictated by federal marketing order,” he points out. “Our fruit and vegetable growers are competing against farmers in other states and other countries who have significantly lower labor costs. So they can't just increase their prices to make up for 70 percent increase in labor costs."

Ammerman says the bureau is against a minimum-wage hike. He points out that New York's average agricultural wage is $12.39 an hour and says this already puts farmers in the state at a competitive disadvantage.

Richard Oswald, agricultural correspondent for the Center for Rural Strategies, disagrees. He says many farmers now use machines to do what many farm workers once did.

So in the event of a wage hike, the machines would take some of the sting off of rising labor costs for farmers.

"A lot of what we do – even berry picking in those parts of the country where things like blueberries and raspberries and blackberries are grown – and even that has become more mechanized,” he point out. “They use some pretty expensive machines to pick berries and they only involve maybe two or three people as operators."

Oswald says the Center for Rural Strategies supports fair treatment for labor as well as the right to a good living wage. He notes that many farms already pay their workers wages that aren't much less than $15 an hour.

Oswald also says many farms are run by families, and rely on the labor of the family, further reducing labor costs.






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A Montana legislative committee this week heard a bill to revise workers' compensation laws. Among opponents were workers who have navigated the system themselves. If a Montana worker were to get hurt on the job today, law requires insurance providers defer to the person's "treating physician." But Senate Bill 345 would remove that policy.

Sen. Greg Hertz, R-Polson, says that helps insurers get the "best available evidence."

Amanda Frickle, political director of Montana AFL- CIO, a state federation of unions, said workers' compensation claims and cases are "meant to be deliberative."

"This bill is fundamentally tipping the scales against the injured worker and in favor of the insurance company when it comes to these workers' compensation claims," she said.

The bill would allow insurers to require an independent medical examination from a provider of the company's choosing, even if that means someone out-of-state. In that case, the insurer would cover expenses such as travel, lodging and child care. But opponents say travel is not conducive to healing.

Niki Zupanic, owner of the Montana Trial Lawyers Association, says that adds to workers' up-front costs.

"Many of these costs, whether or not they will eventually be reimbursed, are likely to be coming out of pocket ahead of time from the injured worker, while they're also working most likely reduced hours and trying to juggle other expenses with their families," she explained.

According to the Montana Department of Labor and Industry, of all Montanans covered by a workers' comp policy, about 4% report an injury in a given year, or 23,000 people.

South Dakota's new governor is making an active pitch regarding economic opportunities for the state. The renewable-energy sector said it continues to build a strong case, including manufacturing jobs.

Gov. Larry Rhoden spent much of March crisscrossing South Dakota on his "Open for Opportunity" tour to hear about promising development, workforce needs and trade issues. It has not received a visit yet but officials with the Marmen Energy plant in Brandon said they are keeping busy. Nearly 300 people there construct towers to hold turbines for wind energy.

Dan Lueders, plant manager for Marmen Energy, called it the very definition of "American-made" products.

"It's fully American made with American steel," Lueders explained. "We're contributing to the American independence on energy and also providing good-paying manufacturing jobs."

The Clean Grid Alliance said the plant produces roughly 1,000 tower sections each year for shipment throughout the upper Midwest. Lueders noted with data centers and other factors driving up electricity demand, he sees more opportunities for his operation. Nationally, enthusiasm has been somewhat dampened by the Trump administration's push to roll back renewable-energy funding, with a stated desire to focus more on fossil fuels.

But utilities are increasingly turning to renewables to diversify their output as demand spikes.

Waylon Brown, president of Rushmore State Renewables and regional policy manager for Clean Grid Alliance, said if South Dakota keeps the welcome mat out for wind and solar development, other industries will want to set up shop here.

"They're looking for nearby energy generation when deciding what states to do business in," Brown pointed out.

In addition to the manufacturing upside, the Energy Information Administration said South Dakota ranks second nationally for wind energy generation. Brown said, for example, having a healthy power supply could be attractive to the health care sector, noting advancement in medical technology is one of the many other things requiring more energy use.

More jobs could be coming to Arkansas as companies interested in bringing manufacturing jobs back to the U.S. consider the Natural State, according to a study by the Reshoring Institute.

Rosemary Coates, executive director of the nonprofit, said the state's low minimum wage is cost-effective for companies requiring a large labor force.

"What we generally encourage our clients to do is look at the major metropolitan areas and set up manufacturing just outside of that area so you can pull from the labor pool there," Coates explained. "Or to look at the metropolitan areas in places like Arkansas."

She noted although manufacturing remains cheaper in other countries, supply-chain problems experienced during the pandemic are making U.S. companies explore options for reshoring. The study did not address the financial effects of possible Trump administration tariffs on materials manufactured abroad.

Twenty states across the country, mainly in the South, pay the federal minimum wage of $7.25 an hour. If labor is a high percentage of a company's costs, it could be less expensive to reshore operations. Coates added some companies opt to have plants in multiple countries.

"Bringing some manufacturing to Mexico and some to the U.S. and keeping some in Asia," Coates outlined. "Companies are really rethinking the whole idea and strategy about where in the world they're manufacturing."

She stressed labor rates vary between rural areas and major cities in every state. Other costs associated with reshoring include local and state taxes, training, tax credits and logistics.


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