Ag Council’s Statement on the Signing of AB 2646
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On behalf of the thousands of farmers and the ag community we represent, Ag Council is deeply disappointed Governor Newsom signed AB 2646 (Krell) into law today. This measure increases the hourly wage for certain ag workers to $19.75 with annual inflation adjustments.
Specifically, beginning January 1, 2027, AB 2646 increases the hourly wage to $19.75 for H-2A workers and those working for the same employer in the same county as the H-2A workers.
Farmers in California have a higher cost of production than those in other states given they meet some of the most ambitious environmental and labor standards in the world. Our members farm and produce in the communities where they live and care deeply about their workers, the environment, and the products they produce.
With inputs up, now is not the time to increase the burden on California’s family farms as they struggle to operate in a state where the cost of production continues to skyrocket.
AB 2646 puts California on a trajectory to make it significantly more difficult for farms and nurseries to remain viable given it is projected to impose between $256 million and $736 million in additional annual costs, with the impact continuing to rise through automatic annual increases.
Though the ag community is resilient, AB 2646 will likely reduce our competitiveness and add to the challenges facing farming families and producers.
Ultimately, imported products will increase, and the cost pressures from AB 2646 will be borne by local farmers – and all Californians – further driving up inflation and exacerbating the affordability crisis.
Antitrust Measure Signed into Law
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Governor Newsom signed AB 1776 on September 30 to include single firm conduct in California’s antitrust statute, the Cartwright Act. Ag Council opposed the bill.
The pushback on the bill during the legislative process by multiple business sectors and agriculture led to the removal of the private right of action and further alignment in the bill with federal law. Some proponents of the bill then removed their support and opposed the bill.
In his signing message, the governor refers to one of the remaining concerns in AB 1776, which is how “substantial market power” will be defined and enforced upon in practice. He cautions, “…we must be careful not to set the bar too low – dragging legitimate, superior business practices and products into the ambit of anti competitive behavior.”
He continues, “…the bill’s reference to ‘substantial market power’ should be understood as a necessary – but not sufficient – condition to prove unlawful conduct.”
Click the link below to read the governor’s full statement.