California Governor Gavin Newsom has signed AB 2646, raising the minimum hourly wage for H-2A agricultural workers and associated employees to $19.75 beginning January 1, 2027. The wage will also continue rising each year based on Social Security cost-of-living adjustments. The bill applies on top of existing H-2A requirements that employers already provide housing and transportation.
Western Growers, which opposed the bill throughout the legislative process, called it an "economically stupid mandate" and warned it will impose hundreds of millions in additional annual costs on California agriculture. The organization noted that net farm income in California is already declining as operating costs spiral, and that many growers cannot absorb or pass along dramatic wage increases. Western Growers also said it is evaluating legal options in response.
For buyers and category managers sourcing from California, this is worth monitoring closely. If growers reduce acreage or shift production to other states or Mexico, it could affect the volume and origin mix of key commodities — especially leafy greens, berries, and stone fruit — available through California supply chains starting in 2027.