[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] AGRICULTURAL LABOR: FROM H-2A TO A WORKABLE AGRICULTURAL GUESTWORKER PROGRAM ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON IMMIGRATION AND BORDER SECURITY OF THE COMMITTEE ON THE JUDICIARY HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ FEBRUARY 26, 2013 __________ Serial No. 113-3 __________ Printed for the use of the Committee on the Judiciary Available via the World Wide Web: http://judiciary.house.gov ---------- U.S. GOVERNMENT PRINTING OFFICE 79-584 PDF WASHINGTON : 2013 COMMITTEE ON THE JUDICIARY BOB GOODLATTE, Virginia, Chairman F. JAMES SENSENBRENNER, Jr., JOHN CONYERS, Jr., Michigan Wisconsin JERROLD NADLER, New York HOWARD COBLE, North Carolina ROBERT C. ``BOBBY'' SCOTT, LAMAR SMITH, Texas Virginia STEVE CHABOT, Ohio MELVIN L. WATT, North Carolina SPENCER BACHUS, Alabama ZOE LOFGREN, California DARRELL E. ISSA, California SHEILA JACKSON LEE, Texas J. RANDY FORBES, Virginia STEVE COHEN, Tennessee STEVE KING, Iowa HENRY C. ``HANK'' JOHNSON, Jr., TRENT FRANKS, Arizona Georgia LOUIE GOHMERT, Texas PEDRO R. PIERLUISI, Puerto Rico JIM JORDAN, Ohio JUDY CHU, California TED POE, Texas TED DEUTCH, Florida JASON CHAFFETZ, Utah LUIS V. GUTIERREZ, Illinois TOM MARINO, Pennsylvania KAREN BASS, California TREY GOWDY, South Carolina CEDRIC RICHMOND, Louisiana MARK AMODEI, Nevada SUZAN DelBENE, Washington RAUL LABRADOR, Idaho JOE GARCIA, Florida BLAKE FARENTHOLD, Texas HAKEEM JEFFRIES, New York GEORGE HOLDING, North Carolina DOUG COLLINS, Georgia RON DeSANTIS, Florida KEITH ROTHFUS, Pennsylvania Shelley Husband, Chief of Staff & General Counsel Perry Apelbaum, Minority Staff Director & Chief Counsel ------ Subcommittee on Immigration and Border Security TREY GOWDY, South Carolina, Chairman TED POE, Texas, Vice-Chairman LAMAR SMITH, Texas ZOE LOFGREN, California STEVE KING, Iowa SHEILA JACKSON LEE, Texas JIM JORDAN, Ohio LUIS V. GUTIERREZ, Illinois MARK AMODEI, Nevada JOE GARCIA, Florida RAUL LABRADOR, Idaho PEDRO R. PIERLUISI, Puerto Rico GEORGE HOLDING, North Carolina George Fishman, Chief Counsel David Shahoulian, Minority Counsel C O N T E N T S ---------- FEBRUARY 26, 2013 Page OPENING STATEMENTS The Honorable Trey Gowdy, a Representative in Congress from the State of South Carolina, and Chairman, Subcommittee on Immigration and Border Security................................ 1 The Honorable John Conyers, Jr., a Representative in Congress from the State of Michigan, and Ranking Member, Committee on the Judiciary.................................................. 2 The Honorable Bob Goodlatte, a Representative in Congress from the State of Virginia, and Chairman, Committee on the Judiciary 4 The Honorable Zoe Lofgren, a Representative in Congress from the State of California, and Ranking Member, Subcommittee on Immigration and Border Security................................ 5 WITNESSES Bob Stallman, President, American Farm Bureau Federation Oral Testimony................................................. 7 Prepared Statement............................................. 10 Chalmers R. Carr, III, President, Titan Farms, Ridge Spring, SC Oral Testimony................................................. 14 Prepared Statement............................................. 17 Mike Brown, President, National Chicken Council, on behalf of the Food Manufacturers Immigration Coalition Oral Testimony................................................. 38 Prepared Statement............................................. 40 Giev Kashkooli, 3rd Vice President, United Farm Workers Oral Testimony................................................. 44 Prepared Statement............................................. 47 LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING Material submitted by the Honorable Zoe Lofgren, a Representative in Congress from the State of California, and Ranking Member, Subcommittee on Immigration and Border Security................ 54 Material submitted by the Honorable Trey Gowdy, a Representative in Congress from the State of South Carolina, and Chairman, Subcommittee on Immigration and Border Security................ 102 AGRICULTURAL LABOR: FROM H-2A TO A WORKABLE AGRICULTURAL GUESTWORKER PROGRAM ---------- TUESDAY, FEBRUARY 26, 2013 House of Representatives Subcommittee on Immigration and Border Security Committee on the Judiciary Washington, DC. The Subcommittee met, pursuant to call, at 2:02 p.m., in room 2141, Rayburn Office Building, the Honorable Trey Gowdy, (Chairman of the Subcommittee) presiding. Present: Representatives Gowdy, Goodlatte, Poe, Smith, King, Jordan, Amodei, Labrador, Lofgren, Conyers, Jackson Lee, Gutierrez, Garcia and Pierluisi. Staff present: (Majority) George Fishman, Chief Counsel; Allison Halatei, Parliamentarian & General Counsel; Graham Owens, Clerk; (Minority) Perry Apelbaum, Staff Director & Chief Counsel; and David Shahoulian, Minority Counsel. Mr. Gowdy. Good afternoon. The Subcommittee on Immigration and Border Security will come to order. Without objection, the Chair is authorized to declare recesses of the Committee at any time, and in that regard I would apologize to the four witnesses upfront. There will be votes called at some point during this hearing. I will commit to you to come back as quickly as these tired old legs will bring me back. So I apologize in advance for any inconvenience, but it is unavoidable. With that, I would like to welcome, on behalf of all of us, all of our witnesses. There are at least three things that we all remember from this year's Super Bowl: the power shortage; the assault and battery that was not called in the end zone on fourth down; and most importantly, a commercial with Paul Harvey's voice celebrating the respect that all of us have for the American farmer. Farming is more than just a means of securing a safe, reliable food source. Farming is more than just living in harmony with land and withstanding the vagaries of nature. Farming is a way of life. It is a culture, a uniquely American culture in many regards. We would do well to place ourselves in the shoes of farmers because we sometimes lose track of what it takes for growers to actually put this bounty on the world's tables. We lose track of what it takes for them to give us the safest, most efficient, most reliable agricultural system in the world. For those crops that are labor-intensive, especially at harvest time, hard labor is critical. One grower might need only one or two hired workers to help plant, tend and harvest several hundred acres of wheat. However, another might need hundreds of seasonal workers to harvest hundreds of acres of fruits or vegetables, and a dairy or a food processor might need hundreds of workers year round. It is universally agreed that at least half of our seasonal agricultural labor supply is made up of workers without legal residency status. This figure is probably much more than half, and could comprise upwards of 1 million unauthorized workers. As Congress considers yet again immigration reform, we must decide whether and under what circumstances and conditions growers can continue to rely on these workers. We all seek a future without reliance on unauthorized workers. But to accomplish that, we need a guestworker program to provide growers with the labor they need, indeed all of us need. What about the current H-2A agricultural worker program? This program is numerically capped, and initial expectations were that growers would use hundreds of thousands of H-2A workers each year. Yet, the State Department only issues about 50,000 visas a year. So why is it so under-utilized? What I am going to do today is ask the farmers, because in the eyes of many, the program itself is designed to fail. It is cumbersome. It is full of red tape. Growers have to pay wages far above the locally prevailing wage, putting themselves at a competitive disadvantage with growers who use illegal labor. Growers are subject to onerous rules, such as the 50 percent rule, which requires them to hire any domestic worker who shows up even after the H-2A worker has arrived from overseas. Growers can't get workers in time to meet needs dictated by the weather. And finally, growers are constantly subject to litigation by those who don't think the H-2A program should even exist. What growers need is a fair and workable guestworker program. They need a program that gives them access to the workers they need, when they need them, at a fair wage and with reasonable conditions, and they need a partner in the Federal Government, not what is often perceived as an adversary. A reformed guestworker program will work better for growers and for workers. If growers can't use a program because it is too cumbersome, none of its worker protections will benefit actual workers. If a program is fair to both growers and workers, it will be widely used and workers will benefit from its protections. I look forward to hearing today's witnesses and learning how they would reform our agricultural guestworker system. I now would recognize the past Chairman of the full Committee, Mr. Conyers. Mr. Conyers. Thank you, Chairman Gowdy, for your comments about our first hearing of the Immigration Subcommittee. I am glad we are here to talk about our country's agricultural labor needs, and I welcome the four distinguished witnesses that are with us today. We talk about how our agriculture industry depends on the migrant labor. Right now, half or more of the 2 million farmworkers picking our crops and harvesting our fruits and vegetables, I am sorry to say, are undocumented immigrants. I think this is unsustainable, and I think that the entire Committee is motivated to try to do something about this. I feel that we all have the common goal of solving this problem, and I believe the discussion with the witnesses before us can help bring us closer to the solution. I want to begin by talking about what we mean when we talk about our agricultural labor needs. We know that these are hard jobs. We know it is back-breaking work. In many ways, it is also skilled work. Maybe you don't need a Ph.D. in engineering, but I doubt most engineers would be very good at cutting lettuce in exactly the right way to bring it to market. We also know that there are Americans and immigrants with work authorizations who perform this work, and there are not nearly enough of them to get the job done. This is important to Members of Congress from districts that produce the hand-picked produce that we all enjoy. Their local economies are built upon a, frankly, untenable situation. They depend on the labor of undocumented immigrants, which means they depend on our willingness to tolerate that unacceptable situation. The U.S. Department of Agriculture reports that every on- the-farm job supports 3.1 upstream and downstream jobs in processing, trucking, distribution. These jobs are generally held by American workers, so the destruction of agriculture and the offshoring of all these farm jobs means the loss of millions of other jobs in communities across the country. It is important to us. So the question that we are faced with is what do we do? Last Congress, we heard over and over that the solution is to reform the H-2A program for temporary seasonal agricultural workers, or to create an entirely new program to accomplish that same goal. This Committee never considered proposals to allow all of our current undocumented workers who work year after year at the same farms, provide skilled, dependable labor that benefits us all, to earn permanent legal status. These are people who have families, have been paying taxes, are good people, and are already doing the work that benefits us all. Does it make sense to anyone that we should deport all of our current workers and replace them with half a million new temporary workers who can only stay for 10 months and must come and go back every year? It would take billions of dollars to deport the farmworkers we already have, something that we know can never happen, and we would require growers across the country to spend hundreds of millions of dollars bringing in new farmworkers. So, I conclude with these suggestions. Number one, let's find a way to provide legal status to current undocumented farmworkers. And secondly, let's see if we can collectively create a new temporary visa program to bring in new farmworkers when we need them, and this would be efficient for both the employers and give the much needed and deserved protection to the workers. And so we welcome you, gentlemen, and I thank the Chairman for his indulgence, and I yield back my time. Mr. Gowdy. I thank the gentleman. The Chair would now recognize the gentleman from the great State of Virginia, the Chairman of the full Committee, Mr. Goodlatte. Mr. Goodlatte. Thank you, Mr. Chairman. I appreciate your holding this hearing. As former Chairman of the House Agriculture Committee, I have had the opportunity to learn first-hand what farmers face in dealing with the H-2A program. It is a costly, time-consuming, and flawed program. Each year, employers have to comply with a lengthy labor certification process that is slow, bureaucratic, and frustrating. It is a process that forces them to expend a great deal of time and money each season in order to prove to the Federal Government what nearly everybody already knows is the case: that legal, dependable farm labor is very hard to find. In addition, the law forces them to pay an artificially inflated wage rate, higher than the prevailing wage in their region, and provide housing and daily transportation for their workers at their own expense. These farmers are paying an average of $10 an hour or more, and still cannot find enough Americans willing to take the jobs. Even worse, as a result of complying with these H-2A regulations, H-2A farms almost always find themselves at a competitive disadvantage in the marketplace. What all of this tells us is that farmers who participate in the H-2A program do so as a matter of last resort and conscience. They do it because they know that realistically, most of the available farm labor is illegal, and they don't want to break the law. A guestworker program should help farmers who are willing to pay a fair wage for law-abiding, dependable workers, not punish them. For this reason I support replacing the H-2A program and implementing new policies that will bring our illegal agricultural workers out of the shadows as a first step in the process of overhauling our Nation's immigration system. Addressing the complex labor issues of the relatively small agriculture sector can help us understand how we can build our broader immigration laws and enforcement mechanisms in order to enhance the U.S. economy and make our immigration laws more efficient and fair for all involved. Instead of encouraging more illegal immigration, successful guestworker reform can deter illegal immigration and help secure our borders. I believe we should enable the large population of illegal farmworkers to participate legally in American agriculture. Those eligible will provide a stable, legal agricultural workforce that employers can call upon when sufficient American labor cannot be found. In addition, a successful guestworker program will provide a legal, workable avenue for guestworkers who are trying to provide a better life for their families. It is well past the time to replace the outdated and onerous H-2A program to support those farmers who have demonstrated that they will endure substantial burdens and bureaucratic red tape just to employ a fully legal workforce and to offer a program that is amenable to even more participants in today's agricultural economy. We can do this by designing a program with practical safeguards and expanding the current universe of jobs to include dairy jobs and work in food processing plants, among other things. I thank Chairman Gowdy for holding this important hearing, and I look forward to hearing from all of our distinguished witnesses today. Mr. Gowdy. I thank the gentleman from Virginia. The Chair would now recognize the gentlelady from the great state of California, the Ranking Member of the Subcommittee, Ms. Lofgren. Ms. Lofgren. Thank you, Mr. Chairman. I want to thank both you and Chairman Goodlatte for holding this hearing. As we know from the three hearings we held on this issue in the last Congress, as well as many other hearings before that, nowhere is evidence of our broken immigration system more glaring and acute than in the ag sector, where as much as 75 to 80 percent of the workforce is undocumented. I am sure we agree that we can't begin to fix our immigration system without finding a solution to the agricultural problem. I expect that both Chairmen are committed to finding such a solution. I am committed to working with them to finding solutions in this Congress. Let's quickly look at the facts. As we know from past hearings, mechanized crops like corn, wheat and soy are not the issue here. The challenge is with seasonal, labor-intensive fruit and vegetable production, as well as year-round dairy and livestock. These areas require a migrant, flexible, and experienced workforce. While farmers do their best to plan harvests, unexpected changes in humidity or temperature can suddenly move a harvest up, giving growers just days to pick valuable crops. Failure to find experienced workers or any workers at all can lead to significant losses. These losses can ripple through our economy. Agriculture continues to be a major sector of our economy and a primary U.S. export. In fact, we export so many agricultural products, many more than we import, that this sector is regularly the largest in which we see a trade surplus. Yet, Congress has long ignored the labor needs of this sector. For decades, our country has rightfully educated our children for work in other areas. At the same time, our immigration laws have made it all but impossible to fill the resulting void with legal foreign workers. For example, despite a need for millions of workers, some on a permanent basis, our immigration laws issue only 5,000 green cards per year to people without bachelor's degrees. That is 5,000 per year to be shared not just by ag employers but also landscapers, restaurants, hotels and nannies, and many other jobs where immigrant workers fill a crucial need. The H-2A temporary worker program has not filled the gaps either. Farmers often complain that the program is too bureaucratic and slow, and surveys show that H-2A workers often arrive weeks after they are first needed. Many growers feel they cannot make the program work, and that is why the program has been used so sparingly, reaching the high water mark of 64,000 visas in 2008. In that environment, should anyone be surprised that market forces work their magic to pair up willing employers and willing workers? If we are honest, we must admit that Congress essentially left farmers with no choice but to hire undocumented workers. Let's not fool ourselves; we all knew it was happening, and we looked the other way as workers came to fill the jobs that our country desperately needed filled. Many of our constituents are still in business because those workers came here. So what do we do now? Do we accept responsibility for creating this mess, recognize that we have an experienced workforce that has been providing critical services to the country for years, and provide a way for them to attain legal status and continue to help this country succeed? Or do we, as some have previously suggested, attempt to throw out millions of agricultural workers just to force our growers to import millions of other workers through government controlled programs that have not worked in the past? I think we will all agree that the only viable solution is a balanced approach that both preserves the current workforce and makes it easier to meet future needs with new workers. If we learned anything from our many hearings on this issue, it is that a one-sided solution won't work. There was a time when we understood that. Years ago, growers and farmworkers came together to craft the ag jobs compromise. Supported by both business and labor, ag jobs also had the strong support of many Members on both sides of the aisle. We know that some growers no longer support that compromise, and that most Republicans withdrew their support in years past. But it nevertheless shows that all sides can reach a balanced, bipartisan agreement when we work together for a common purpose. Now, I am heartened by the news that the American Farm Bureau and the United Farm Workers have reengaged in talks to reach a balanced and thoughtful compromise, and I welcome those negotiations, and I commit to doing what I can to ensure their success. The country really needs that you all succeed. We must do now what America does best, be pragmatic. We must recognize that our laws have been broken for decades, failing to meet the needs of entire industries, particularly agriculture, so people took matters into their own hands. Yes, the farm workers came without obeying immigration rules, and almost every fruit and vegetable farm in the country also broke the law by hiring them, and the government essentially let it all happen. Congress can't escape our role in this. We need to recognize that and to do what is right for our country, and I have confidence actually that we will do so. Thank you, Mr. Chairman. Mr. Gowdy. I thank the gentlelady from California. The entire Committee welcomes a very distinguished panel of witnesses today. I am going to introduce you en banc, and then I will recognize you individually. Many of you have testified before, so you are familiar with the lighting system. Green means go, yellow means speed up--I hope there is no law enforcement around--and red means, if you can, go ahead and conclude. We are first delighted to have Bob Stallman. Mr. Stallman is a rising cattle farmer from Columbus, Texas. He is the President of the American Farm Bureau Federation. Mr. Stallman was first elected president in January 2000. The American Farm Bureau Federation is an independent, non-governmental, voluntary organization governed by and representing farm and ranch families. Prior to becoming President of the American Farm Bureau Federation, Mr. Stallman served as President of the Texas Farm Bureau. He became a member of AFBF's Board of Directors in 1994. Mr. Stallman graduated with honors from the University of Texas at Austin in 1974. After he testifies, it will be Mr. Chalmers Carr, who is the President and CEO of Titan Peach Farms, which is in South Carolina, its largest commercial peach operation. He is also treasurer of the South Carolina Peach Council, Chairman of the South Carolina Farm Bureau Labor Committee. Mr. Carr began his farming career in 1990 and has been with Titan Farms since 1995. He has participated in the H-2A program for 13 years. He received his Bachelor's degree from Clemson University. Mr. Michael J. Brown currently serves as the President of the National Chicken Council. The National Chicken Council is a national non-profit trade association representing the U.S. chicken industry. Prior to his joining the NCC, Mr. Brown served as Senior Vice President for Legislative Affairs of the American Meat Institute. He also served as the treasurer of AMI's political action committee, AMI PAC. Mr. Brown earned his Bachelor of Science in political science and history from the State University of New York, Brockport. And finally, we have Mr.--I'm just going to tell you right now I am going to mess this up, but I think the last name is pronounced Kashkooli. Is that fair? Okay, all right. Mr. Kashkooli is the legislative and political director and third Vice President of the United Farm Workers of America, overseeing the union's political, legislative, research and communications work. He served with the UFW for 14 years throughout California, New York, Washington and Florida, and across to California. He graduated in 1989 from Brown University in Rhode Island, where he first became active in supporting the United Farm Workers' cause. Mr. Stallman, we will begin with you. On behalf of all of us again, we welcome you and thank you for your participation. TESTIMONY OF BOB STALLMAN, PRESIDENT, AMERICAN FARM BUREAU FEDERATION Mr. Stallman. Thank you, Mr. Chairman, Members of the Subcommittee. My name is Bob Stallman. I am a rising cattle producer from Texas and serve as President of the American Farm Bureau Federation. I appreciate the opportunity to testify today regarding my organization's views on the agricultural labor challenge facing food production in the United States. America's farmers, livestock producers, fruit and vegetable growers, and dairy producers all have specific labor demands. But those demands vary by region, by commodity, by season, and by market characteristics. We desperately need--in fact, we have needed for some time--a system that is flexible, adaptable, efficient and economic for producers. This system must attract a sufficient number of competent, willing and able employees to sustain and grow production, allow the recruitment and hiring of non-resident agricultural workers when the need is demonstrated, and allow an opportunity for some current non- resident agricultural workers to apply for legal resident status. This need for change is partly driven by the failure of the current H-2A program. Farmers and ranchers have witnessed increased denials, seemingly arbitrary changes in the interpretation of longstanding agency rules, dates of need that have gone unmet. In short, the program as it is administered today is simply not doing what Congress designed it to do. A year ago, American Farm Bureau set out to identify what such a system would look like. We established a working group from around the country that considered the needs of fruit and vegetable growers from California and Florida, livestock producers and custom harvesters in the Midwest, dairy farmers in upstate New York and everywhere in between. And we didn't just talk to ourselves. We sought input from worker advocates, Members of Congress on both sides of the aisle, Committee staff, labor unions, and labor advocate groups. We also talked to other agricultural interests. This led to the founding of the Agriculture Workforce Coalition. Clearly, we wanted to identify the needs of growers, but we also wanted to be sensitive to the rights and needs of workers. To summarize briefly, our program would be a wholly new program that is market based. We envision that, over time, it would entirely replace H-2A. It would be administered by the U.S. Department of Agriculture. Further, it would eliminate unnecessary bureaucracy and expenses both for the government and employers, and it would provide workers job portability and the freedom to quit and leave for other positions if they wish, a right they currently do not have under H-2A. Importantly, it would broaden the program to all of agriculture, including year-round jobs. There is currently no program, even H-2A, which provides this opportunity to workers or employers. It would allow employers to offer a contract for certain jobs, but would not require workers to take such positions, an option they currently do not have. My written submission to the Committee goes into much greater detail about our proposal, and I will be pleased to answer questions from the Committee about any specific provision. Provided that this Committee and Congress can adopt such a program, my organization would be prepared to accept greater employer verification obligations, such as E-Verify. As you may recall in the last Congress, Farm Bureau could not support the E-Verify legislation approved by this Committee for the simple reason that we were not provided a workable program. There is an important additional provision to our program that I would like to stress. In order to provide short-term stability and an orderly, effective transition to this new guestworker program, we believe Congress should include provisions permitting certain workers who have worked in U.S. agriculture who might not otherwise qualify to obtain work authorization. Granting existing experienced agricultural workers work authorization is a crucial part of making sure that there is not economic dislocation in the agricultural sector while we transition to a new program. Last, while I am testifying today on behalf of American Farm Bureau, I want to reiterate the impact of the Agriculture Workforce Coalition. Agriculture has faced disagreements in the past. Today, the AWC represents a range of broad agricultural interests from coast to coast. The unity of this group speaks volumes for the importance of this issue for the industry. The proposal I have outlined today is aligned with the views of the AWC, and all of agriculture is united behind this common effort to break with the past and construct a model program that will work for us in the future. All of us recognize the highly contentious nature of this debate, but we urge the Committee to remember one overriding fact: U.S. agriculture needs a comprehensive, workable solution. We cannot wait, and we pledge our support to you and all Members of the Committee as you grapple with this issue. I appreciate this opportunity to testify and will be pleased to answer any questions from the Committee. [The prepared statement of Mr. Stallman follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Mr. Gowdy. Thank you, Mr. Stallman. Mr. Carr. TESTIMONY OF CHALMERS R. CARR, III, PRESIDENT, TITAN FARMS, RIDGE SPRING, SC Mr. Carr. Thank you for allowing me the opportunity to explain my experiences and my views of the deficiencies in the H-2A program and share with you the needed reforms to create a viable guestworker program. I am the farmer in the group. I am the one here that does this every day. My name is Chalmers Carr, and I own Titan Farms in Ridge Spring, South Carolina, where I grow 5,000 acres of peaches and farm 700 acres of vegetables. I have been working within the H-2A program for the last 14 years, employing 500 legal alien workers just last summer. Looking beyond the role that agriculture plays in national security, I ask you to think about food safety and the impact that the fruits and vegetables imported into this country have on our society. Due to labor shortages, domestic production of fruits and vegetables is declining, while imports are increasing. An FDA report shows that imported vegetables are three times more likely to be contaminated with foodborne pathogens and four times more likely to be treated with pesticides exceeding domestically grown produce. I ask you to ponder this one statement: A country with an abundant food supply has many issues. However, a country that cannot feed itself only has one. In order to have a vibrant and robust agriculture industry, we must have a workforce that is vibrant and robust as well. The current U.S. labor market is experiencing a negative demographic trend. The Baby Boomers are getting older, and our younger generations, who are far less in numbers, are using their brains instead of their backs. There is also an enormous misconception that our country has an abundant supply of American workers willing to work in the agriculture industry. Even in the recent recession, unemployment of domestic workers at the farm level did not increase. Furthermore, it is commonly accepted that 50 percent of the 1.2 million workers in agriculture are undocumented. I heard today it is 75 to 80 percent. Because of this large percentage of undocumented immigrants, states have felt abandoned by the Federal Government and have begun to pass their own immigration and employment verification laws. Such cavalier legislation is having a negative impact on the availability of farm labor. Currently, there is a shortage of workers regardless of their legitimacy. Demographic trends clearly show that this is an ongoing problem and that this is only going to get worse. This is why agriculture must have a viable guestworker program. The current H-2A program only supplies 4 percent of the labor force needed in agriculture. This statistic alone verifies the fact that the H-2A program is riddled with problems and is cumbersome to use, that the vast majority of agriculture employers have stayed clear of it. I would like to highlight the major problematic areas of the H-2A program, details of which are contained in my written statement before you. First and foremost, the program is limited in who can participate. The wage rate is not market- based and not realistic. The 50 percent rule for recruitment, the application process, the requirement to provide housing, the transportation and visa fees, and lastly, the litigious nature of the program, these are the key reasons why the agriculture industry has not used the H-2A program. As Mr. Stallman said, the agriculture community has been divided, and we have come together. The Agriculture Workforce Coalition, or AWC, is now speaking with a united voice, representing the diverse needs of agriculture employers from across the country. As you begin the debate on guestworker reform, I would ask you to consider the problematic nature of the current program and incorporate solutions that I have provided in my written statement which are consistent with the AWC's principles on guestworker reform. Lastly, I would address this Committee and ask you to hear just one statement very clearly. The agriculture industry cannot endure another election cycle. Whether you tackle comprehensive immigration or not, the agriculture community needs immigration reform, and we need a guestworker program now. I would like to leave you with this last question. Would you rather have the food you feed your family grown on the fertile soils under the governance of the USDA and the FDA being harvested by lawfully admitted foreign nationals, or are you willing to accept putting food on the dinner table tonight that was grown in a foreign country with unknown production practices, unknown food safety protocols, while either way that food is still going to be harvested by a foreign national? It is my hope that Congress desires to ensure that American farmers can continue to feed Americans at home, with plenty left over to feed the rest of the world. Thank you for your time and consideration. [The prepared statement of Mr. Carr follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Mr. Gowdy. Thank you, Mr. Carr. Mr. Brown. TESTIMONY OF MIKE BROWN, PRESIDENT, NATIONAL CHICKEN COUNCIL, ON BEHALF OF THE FOOD MANUFACTURERS IMMIGRATION COALITION Mr. Brown. Mr. Chairman, Chairman Gowdy and Ranking Member Lofgren, I appreciate the opportunity to testify here today on the important issue of comprehensive immigration reform. I am Mike Brown, President of the National Chicken Council. NCC's members produce and process more than 95 percent of the chicken consumed in the United States. I am testifying today on behalf of a broader Food Manufacturers Immigration Coalition. To date, much of the immigration reform discussion has focused on the need to retain highly skilled workers such as scientists and engineers, and the need for additional temporary agriculture workers. These are important objectives, but they do not meet the needs of our industry sector. We seek workers who will stay on the job to become skilled and efficient, helping us to keep our food products and employees safe. This takes investment, up to thousands of dollars spent on training and equipment for each employee. The coalition's principles are as follows. Under enforcement, while border security has improved significantly over the past decade, improvements can be made to further lower the number of illegal border crossings. One suggestion the coalition has is to provide exit or expiration data to E-Verify to aid the government in its effort to track visas and prevent overstays. Under strengthening employment verification and preventing identity fraud, unfortunately the government does not provide employers with a reliable verification method to prevent identity fraud. E-Verify is a step in the right direction, but it must be strengthened. Our industry has had nearly 20 years of experience using this program. If strengthened, this program will serve as an effective and efficient virtual border, if you will, because the electronic data will keep folks from seeking employment if they know they can't pass. Over the past decade, the government has discovered thousands of ineligible employees working for employers who have processed these employees through E-Verify. The system does not account for identity fraud. Currently, multiple people can earn wages on the same Social Security number or use the Social Security number of a deceased individual. The solution? Employers should be allowed to require an E- Verify Self Check. E-Verify Self Check is an online service that allows individuals to check their employment eligibility before beginning a new job. The Self Check entry portal helps prevent identity fraud by melding E-Verify with an automated Connect The Dots program, similar to credit background checks when we all apply for credit cards or other information. Under the current interpretation of the Office of Special Counsel for Unfair Immigration-Related Employment Practices, employers may not require anyone to use Self Check in the employment process. In fact, we may not even discuss it with a prospective employee. The Social Security Administration must be required to verify that Social Security numbers are not being used in duplicate locations or are not matched to deceased individuals. In return for participating in these aggressive screening programs, a safe harbor should be provided for employers that utilize the E-Verify Self Check and follow the automatic referral process. Under anti-discrimination, employers can often be caught between an employee verification obligation and non- discrimination enforcement. For example, the Department of Justice's Office of Special Counsel has cited employers for allegedly acting too aggressively in verifying work authorization status of new hires. Simultaneously, the same business is often targeted for worksite enforcement action for not being vigilant enough. Statistic-based discrimination penalties have been imposed on employers who recruit outside the local community or work with the State Department to hire workers with refugee status when Americans are unavailable or unwilling to fill these jobs. Immigration reform legislation should require that DHS, DOJ, DOL, and other enforcement or anti-discrimination agencies consult internally and publish rules of the road; in essence, harmonize the law throughout the Federal Government. Access to labor. An effective occupational visa system may be the most important barrier to illegal immigration. The existing temporary programs for general labor skilled workers are for seasonal labor only, which does not help manufacturers whose occupational needs are year-round and ongoing. Ag jobs legislation, as important as it is, does not benefit food manufacturers. A manufacturing visa program should include flexible annual goals or targets for immigration that emphasize economic migration, predominantly employment-based migration. These goals or targets should be flexible and adjustable to reflect changing conditions. On earned legalization, our coalition supports an earned legalization program. Our broken immigration system has resulted in up to 11 million undocumented immigrants living in the shadows. Congress must provide a fair and practical roadmap to address the status of unauthorized immigrants in the United States. Mr. Chairman and Members of the Committee, again, I appreciate the opportunity to testify before you today. [The prepared statement of Mr. Brown follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Mr. Gowdy. Thank you, Mr. Brown. Mr. Kashkooli. TESTIMONY OF GIEV KASHKOOLI, 3RD VICE PRESIDENT, UNITED FARM WORKERS Mr. Kashkooli. Thank you, Chairman Gowdy, Ranking Member Lofgren, and Members of this Subcommittee. Thank you so much for the opportunity to testify today. I know that from Florida to Idaho, you have extraordinary experience here, from Congressman Gutierrez to Chairman Goodlatte, the amount of years that you have put in, along with Congressman Gowdy and Ranking Member Lofgren. It is extraordinary what you have put in, and we really do believe we are now in a very special moment. My name is Giev Kashkooli. I am a Vice President of the United Farm Workers of America. We are honored to speak with you today, to share alongside the American Farm Bureau and Mr. Brown and Mr. Carr some of the issues that confront American agriculture for agriculture employers and for agricultural workers, for farmers and for farm workers. America's farms and ranches produce an incredible bounty that is the envy of the world. The farmers and farm workers that make up our Nation's agricultural industry are truly heroic in their willingness to work hard and take on the risk as they plant and harvest the food all of us eat every day. But our broken immigration system threatens our Nation's food supply. Thankfully, many of you have devoted many years to help fix this, and while our views have diverged in the past from those of Chairman Goodlatte, we do not question Congressman Goodlatte's commitment to improving our immigration system for agriculture, and we are very grateful for the seriousness with which you have studied these issues. The UFW and our Nation's agricultural employers have often also been at odds on many policy issues, but we have been working diligently to see if we can come to an agreement that would unify our agricultural employers and our agricultural workers in the agricultural industry, and we believe we are making progress toward that end. We really are in a unique moment to get something done. Let me speak a little bit about what is at stake for the women, men, and children who work in the fields and do some of what Congressman Goodlatte recently called the hardest, toughest, dirtiest jobs. Every day across America, about 2 million women, men and children labor on our Nation's farms and ranches, producing our fruits and vegetables and caring for our livestock. At least 600,000 of these Americans are U.S. citizens or permanent legal residents. Our migrant and seasonal farm workers are rarely recognized for bringing this rich bounty to supermarkets and our dinner tables, and I think that is why, Chairman Gowdy, so many of us were struck by the commercial that you mentioned. Most Americans cannot comprehend the difficult struggles of these new Americans who work as farm workers. Increasingly, however, American consumers are asking government and the food industry for assurances that their food is safe, healthy, and produced under fair conditions. The life of a farm worker in 2013 is not easy. Most farm workers earn very low wages. The housing in farm worker communities is often poor and overcrowded. The Federal and state laws exclude farm workers from many of the labor protections other workers enjoy, such as the right to join a union without being fired for it, overtime pay, many of the OSHA safety standards, and in many states they don't even have workers compensation for farm workers. Farm workers were excluded from these Federal laws in the 1930's, and that is one of the sadder chapters in the history of our Nation, the reasons why. Even in California, where we have won many of these protections and farm workers get many of these protections, we still have seen dozens of farm workers die over the last several years for the simple lack of water or shade working in that hot sun. Not everyone is able to work on Mr. Carr's farm, a farmer who is really following the law. Such poor conditions and discriminatory laws have resulted in substantial employee turnover in agriculture. So we also want to have a serious discussion about the future of the workforce upon which American agriculture and American consumers depend. First and foremost, we seek an end to the status quo. Our number one priority is reform of our immigration process that includes a workable legalization program for the 1 million or more farm workers who are currently working in the fields and their immediate family members, with a roadmap toward a permanent resident status, and then to citizenship. We believe that the farm workers who harvest our food and feed us deserve, at the very least, the right to apply for permanent legal status. To the extent a new path is needed to bring professional farm workers from abroad to this country, these workers should be accorded equality, job mobility, strong labor and wage protections, and an opportunity to earn immigration status leading to citizenship. We have seen Europe's failed experiment of second-class legal status, and we at the United Farm Workers, we believe that America really is exceptional, like I think all of you do. Our agricultural system is just one more example of how America is exceptional. So we should honor the new Americans who continue to build our agricultural system as the heroes that they are for our country. Now, there are agricultural employers who will need to continue to have the security of a contract with farm workers so that they can make sure to meet those needs, and we are hopeful that complaints about bureaucracy that we all understand would not justify reducing wages and job opportunities of U.S. workers, or eliminate wage, housing, and transportation protections. We thank you very much. We believe that we can come to a system that can honor our American values and our exceptional agricultural system. [The prepared statement of Mr. Kashkooli follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Mr. Gowdy. Thank you, Mr. Kashkooli. The Chair will now recognize the Chairman of the full Committee, the gentleman from Virginia, Mr. Goodlatte, for his 5 minutes of questioning. Mr. Goodlatte. Thank you, Mr. Chairman, and thank you all for your excellent testimony. Mr. Stallman, let me start with you. The fundamental basis of your guestworker proposal is a market-driven approach in which workers with portable visas could seek agricultural employment around the country. I certainly recognize and appreciate the need for that. However, doesn't the risk exist that these guestworkers will seek illegal employment outside of agriculture? And if that is the case, doesn't your proposal depend upon the existence of a mandatory E-Verify to ensure that guestworkers can't get jobs outside of agriculture? Mr. Stallman. Yes, we have readily acknowledged that there has to be a system and process for monitoring these workers to be sure they are meeting the requirements of their work status, and E-Verify is definitely a way to do that. Mr. Goodlatte. And I say this not to punish these workers. I say this because this is a balance that we are trying to find between the interests of American workers and workers that we need because there is a shortage, as Mr. Kashkooli acknowledged. If you have 2 million workers in agriculture, and 600,000 of them are United States citizens, obviously there is a big need for non-U.S. citizens. We would like to get as many U.S. citizens into this area as possible, and if it is a market-driven approach where you are paid a fair market wage, we would like to see that accomplished. But we also need to have a system where people come, and then don't go into other sectors of the economy and compete with U.S. workers in areas where they are willing to work and take the jobs and undercut the wage rate in that area. That is a separate issue from what happens to them long term, and I would argue that there will be a number of different ways where people who have this opportunity could ultimately find other opportunities. They might marry a United States citizen. They might get an education and petition for a job that requires more skill, and that is not to say that this is not skilled work, but more skill that would enable them to qualify for a different type of work with a green card. But that is a separate thing from a temporary worker program that is needed, and if you don't have a mechanism to allow them to come here, work, send money home to their families and so on, you're going to find that you have a system where you are constantly replenishing a huge number of people, over 1 million a year. If they do it for several years, it might be several hundred thousand new people a year that you would have to then be providing a green card. So we need to have, if we are going to do a broader base, some call it comprehensive immigration reform, we need to have a component here that will work for this industry that is not only heavily dependent upon these workers, but also heavily competitive with international competition. Food can be produced in lots of different countries around the world. So designing something that works for agriculture is a critical part to designing something that works for a solution to this entire problem. Let me ask you also, Mr. Stallman, do you believe that meat processors and fruit and vegetable canners, which are not in the fields--they have raised that product, they have harvested that crop and now brought it into a processing plant--do you believe they also should have access to a new guestworker program? That is directed to you, Mr. Stallman. Mr. Stallman. I am sorry. I thought that was Mr. Carr. We, in our proposal, talk about extending our program up the chain for basically unfarm packing facilities. When you get into the more advanced food processing and processing facilities, in fact, a lot of those entities, particularly in the livestock sector, have not wanted to be part of the agriculture program, and those sectors generally have a different labor need and different labor conditions than what we do on the farm because it is permanent work, for the most part it is indoor work. Mr. Goodlatte. Right, but there are certain farm works--for example, if you have a dairy farm, your work is not temporary. It can be indoors because those dairy parlors are indoors. So there is sort of a transition there between the temporary field workers that we definitely recognize, and the traditional H-2A worker program is not well-designed, but is it is designed to address, moving to farms that produce a product every day of the year, milk in this instance, to folks who take that product off the farm and further process it. If you visit those facilities around the country, you will find that there is a need for workers in that area that may be just as great as in the farming area. Mr. Stallman. We are basically using the current definitions in our proposal for what constitutes a---- Mr. Goodlatte. Would you be open to a broader definition to try to address this problem from a broader standpoint? Mr. Stallman. I think I would leave that to those particular industries and those particular entities to come up with that. Mr. Goodlatte. Okay. Well, let me ask Mr. Brown and Mr. Kashkooli. Mr. Brown. Thank you, Chairman Goodlatte. As you know, in our industry, we look for a more permanent employee. But as far as a temporary visa program to help with our labor needs, particularly in times when the economy is doing quite well and it is difficult to attract labor, we would be very open to a new visa category for employees for, say, a 24- to 36-month period. When you think of the up-front investment you have made in time and training and the thousands of dollars, we would certainly be open to that and support such a move forward. Mr. Goodlatte. Mr. Kashkooli? Mr. Kashkooli. Sure. I think in terms of dairy, it is clear there is a case to be made there. In terms of packing houses, I think we are more comfortable with the existing definitions. I think for us, there are, in fact, a lot of ways to do this. What is important is that there are certain guideposts. There are 600,000 farm workers now who are U.S. citizens and permanent legal residents we are talking about, we hope. All of us are talking about taking the existing workforce who does not have legal status and allowing them to earn legal status. So the three things in terms of just guideposts is, first, we just cannot hurt the job opportunities for those people, and that would be true if it was in packing houses as well. Second, we have got to therefore be concerned about what does recruitment look like so that those people know about the work. And third, we need to be learning about wages. I have heard that the current wage rates are artificial. We do believe they are artificial. We believe they are artificially low. The majority of the workforce doesn't have legal status, and therefore the wages have been artificially depressed in any real market. Mr. Goodlatte. Well, let me just interrupt you there. Do you believe that if we had a system where they had now legal status in the United States, whatever that might be, but they had legal status, and as Mr. Stallman describes, they have the ability to leave a job where they feel they are being treated unfairly, and they have the ability to move from farm to farm without having an H-2A petition filed for each and every farm location, if they had that, their wages might well go up, might it not, under a market-driven approach? As opposed to having a bureaucracy trying to figure out what that wage should be, which is what we do right now. Mr. Kashkooli. Right. You may be surprised to know that we believe that private citizens acting collectively can be more effective than government regulation. Mr. Goodlatte. And I am glad to hear that. I agree with that. Mr. Kashkooli. Great. I thought so. What President Stallman described, actually, sounds right. But the problem here is the written proposal that they have proposed does not do that. In their written proposal, there is an ability to tie a worker to a contract and have their visa impacted by that contract. So what we would be in favor of is two programs, one truly free market, and I want to get to that in just a second; and second, a contract program that is either H-2A or modeled after the protections of H-2A, which, after all, were a compromise originated by President Reagan. And for the employers that need the security of knowing that a worker needs to show up exactly at that date and for however long the season is, knowing the weather variations, they are probably going to continue to need to use that contract program and then connect themselves to a set of government protections for all of the historic reasons that have had to take place. On the free market, we think that makes a lot of sense. We want to make sure that it is not an artificial free market, so there should not be an endless supply of minimum-wage labor. That is not a truly free market. It should not be an unlimited supply. So there needs to be some kind of cap. There really does need to be portability. A worker really does need to be able to move. They need to have equal labor rights. There cannot be an incentive to hire that person over the other people who are working in the United States, and there needs to be some kind of roadmap to citizenship, we believe. And the reason is because, as Chairman Gowdy just mentioned in referencing that commercial, the people who are harvesting our food which we eat every day, it is a euphemism to call them guestworkers. These are the new Americans who are working our land and feeding us. That is honorable, sacred, beautiful work. And to say to the people who do that work--we believe that the people who do that work should be able to, at least at some point, if they are not in fact temporary, if they in fact are coming back year after year, at least be able to earn the right to apply for legal status. Mr. Goodlatte. Both Mr. Stallman and Mr. Kashkooli offered good contributions here to something that needs to be resolved. My time has long expired. I think we have a vote pending. Mr. Gowdy. I thank the Chairman. I would now recognize the Ranking Member, the gentlelady from California, Ms. Lofgren. Ms. Lofgren. Thank you, Mr. Chairman. Before asking my questions, I would like to ask unanimous consent to put into the record statements from the Western Growers, from Farmworker Justice, the Southern Poverty Law Center, California Rural Legal Assistance, Global Workers Alliance, and several others, if I could. Mr. Gowdy. Without objection. [The information referred to follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Mr. Gowdy. And without taking any of your time, I would ask the same for a statement from our colleague, Doc Hastings. [The information referred to follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Ms. Lofgren. I would also like to just note that a wonderful person who is leading a delegation from California is here in our hearing room, Professor Cynthia Mertens from the University of Santa Clara School of Law, my alma mater. So welcome, Professor Mertens, and the students and others that you have brought here today. It is wonderful to see you. I have a number of questions. First, our prayers are with President Rodriguez. We know that he had a death in his family and was unable to be here, but we are very pleased to have you, Mr. Kashkooli, and your terrific testimony. You have talked a little bit about the portability issue and the idea that you really would be for portability, but there is a flaw in the proposal that has been put forward. I am not sure I understand that flaw. Could you explain it clearly to us? Mr. Kashkooli. Sure. I will be sure to pass on your condolences to Arturo. In the existing written proposal that the Growers Association has put together, in the so-called free-market program, they want the ability to tie workers to a contract that the Federal Government is involved in, and their visa, it has control over that visa. Therefore, the worker would have to go home if they broke the contract. That, therefore, is not portable. That worker does not have the ability to do that. We do not object to an employer being able to tie a worker to a contract even if the Federal Government is involved. But then if that happens, we need to make sure that the set of protections that were negotiated under President Reagan or something like them, their equivalent, continue to be in place. Senator Rubio has said that if an employer has a lot of leverage over the worker, then the worker needs to have more sets of protections from the government, and we subscribe to that. Ms. Lofgren. So if I understand it correctly, you are actually not objecting to having a temporary worker program, provided that it is truly portable, there are labor protections that don't incentivize employers to hire guestworkers as compared to American citizens or legal permanent residents, and that there is cap so that you actually have a market, not a limitless supply of foreign workers. Would that be a fair summary of your position? Mr. Kashkooli. That is exactly right, with two other additions. One, equality of treatment; and second, a roadmap to citizenship for people who are not, in fact, temporary. Somebody who is temporary, but someone who is here year after year and most of the year, that is no longer temporary. Ms. Lofgren. So that is addressing people who have been here for a long time and people who might in the future come for a very long period of time. Mr. Kashkooli. Correct. Ms. Lofgren. You know, even though we don't have agreement yet, it seems to me that there are the elements for getting an agreement here, and that is a piece of good news that we can actually make progress on. I am happy that the California Farm Bureau is represented by the American Farm Bureau, I guess. We had testimony from the California Farm Bureau in the last Congress that they would oppose mandatory E-Verify without a solution for transitioning the current workforce into legal status, because just doubling down on the current situation would be a catastrophe. And they also indicated that the H-2A program simply didn't work for them. I realize that the H-2A program has worked in some locations. We had testimony to that effect. But I think for most farmers, it has not worked. Do you agree, Mr. Stallman, that it would be really impossible to replace the current undocumented workforce with just a temporary program? Are you clear about that? Mr. Stallman. So you are talking about not doing anything to craft a program for those workers that are---- Ms. Lofgren. Well, we had Dr. Richard Land from the Southern Baptist Convention who was a witness at the Committee a number of years ago. I don't want to steal his line because it was so well put, but he said that for years and years we had two signs at the southern border. One sign said ``No Trespassing,'' and the other sign said ``Help Wanted.'' In response to the latter sign, 10 or 11 million people came in. There was no legal way for them to enter and do this job. Many of those individuals have been here for many, many years, decades. So, if those skilled individuals are working in agriculture, can they all be replaced just by a temporary worker program? If they were removed, could you actually make this work? Mr. Stallman. Unlikely, at least at the level that exists today, and that's why our proposal takes into account both of those factors. Ms. Lofgren. Right. Mr. Stallman. You know, how do you handle that experienced workforce that is here? They have been referenced as undocumented. They are documented, but the documents probably are fraudulent. Ms. Lofgren. Right. Mr. Stallman. The law prevents employers from questioning the validity of the documents. Ms. Lofgren. I understand that. Mr. Stallman. Yes, they are here, and that group needs to be dealt with. Part of our proposal deals with that. In addition, though, we need that future flow capability-- -- Ms. Lofgren. I understand. But I wanted to press you, because some people have asserted in the past that we could simply eliminate the vast undocumented group of workers and just replace them with a temporary worker program, and I know your testimony was that that was not the case. But I thought it was important that that be very clear, that that is just not a workable scenario for your industry. Mr. Stallman. Because of all that experience that exists there, although it is the long-term employees that have all the experience, it would be highly disruptive if the scenario that you described occurred where we couldn't continue to use those who are currently here, not with legal status, and just try to replace those with some kind of future flow or temporary program. Ms. Lofgren. Thank you. I see my time has expired, so I will yield back. Mr. Gowdy. I think the gentlelady. They have a call for a vote, so I am going to try to squeeze in Judge Poe before we go. I would just say to my colleagues on both sides, I am coming back. I am going to go last. So if you are able to come back after votes, I promise you will not be the last one to ask your questions. With that, Judge Poe. Mr. Poe. Thank you, Mr. Chairman. Thank you for being here, gentlemen. Mr. Stallman, it is good to see you. I notice you grow rice and Columbus. I represent a lot of rice farmers in Liberty County, Texas. Many times I am asked, well, how many illegals work for the rice farmers in Liberty? Well, the answer is always none. They are too poor to hire anybody. It is all family farms. They have the sons and the daughters and the uncles and aunts all working those rice farms, and I am sure that is the same with you. Rice farming to me is the hardest farming there is. But anyway, I think the whole concept of food, Mr. Carr, is like you said. It is one thing for the United States to be dependent on foreign oil, but I think we can never get into a situation where we are dependent on some other country for what we eat. It is a national security issue. It is also a national health issue. So I operate on that premise. I do think the concept that it is working to some extent with the H-2A visas has merit, and I think that is a good place to start to fix it, and I also believe we should have a verified, expanded guestworker program in other areas, but deal with this issue first, and then, as the Chairman has said, let the market drive the whole issue of guestworkers. I commend all of you for trying to work together to find a solution that works, because you all are in the business, and I hope, as the other side has mentioned, we can come up with a solution that works, that is verifiable, but keeps that issue of national security in the forefront. Mr. Carr, I don't know who is minding the farm now that you are in Washington, D.C. I don't think this is peach season picking yet, but you had mentioned that in your experience, I want to address the issue that Americans will take the jobs that foreign nationals are taking. You have heard that since you ever started the farming business. I used to kind of subscribe to that philosophy as well. I think now we have developed a culture where, unfortunately, there are many Americans who would rather get paid not to work than will work on your farm. They just weigh the good and the bad and they decide they can get paid not to work through government programs. That is another issue we have to fix. So, if I understand you correctly, you advertised for a couple of years, 2010 to 2012, for American workers, and you had 2,000 positions available for workers, farm workers, and 483 Americans applied, and they were hired. Mr. Carr. Yes, sir. Mr. Poe. One hundred nine did not show up on the first day of work; is that right? Mr. Carr. That is correct. Mr. Poe. And then after a couple of days, 321 quit for various reasons. Mr. Carr. That is correct. Mr. Poe. And therefore you ended up with 31 Americans working the whole season; is that correct? Mr. Carr. That is correct. Mr. Poe. Is that experience--and I know that applies to your farm--is that experience that you have had typical of the industry, in your opinion? Mr. Carr. Yes, sir. That is very typical of the industry, in my opinion. Mr. Poe. And what were you paying those folks? Mr. Carr. My prevailing--I mean, my A-wage last year was $9.39 an hour, along with free housing and free transportation, although for domestic workers the base wage would have been my A-wage at $9.39. Mr. Poe. Okay. And is that typical? I am about out of time. Is that typical or not? Mr. Carr. That is very typical of the industry. If you look at the statistics, basically 6 percent, roughly 6 percent of all U.S. workers that are hired under H-2A contracts finish the job. I would say that my numbers are low compared to my neighbors to the south in Georgia, who have experienced 1,700 referrals in 1 year not to produce any that will finish a contract. Mr. Poe. And you are required to hire Americans if you can. Mr. Carr. Yes, sir. We are required to. When I advertised these 2,000 positions, this was over a 3-year seasonal period where I basically averaged about 650 visas a year, and in doing that we have to hire any willing and able U.S. worker that comes through the door, with no background check. All we can ask them is have they read the contract and can they do the work there. We take them to the field. We go through a 2-day training process. Quite frankly, most of them leave before the training process is even over with. But as you reported right there, 109 never even showed up, which is another problem within the system right now because under current regulations, pre-recruitment, we lose a visa requested for every U.S. worker that says they are going to show up. So that 109 under new regulations would have lost one- for-one. We would have lost visas to bring foreign workers over here, causing further delays in the program. Mr. Poe. Thank you, Mr. Chairman. I yield back my time. I believe we can fix this problem and be beneficial to the United States. Thank you, sir. Mr. Gowdy. Thank you, Your Honor. We will be in recess pending votes, and then we will return. Thank you. I appreciate your patience. [Recess.] Mr. Gowdy. The Committee is back in session. Again, we appreciate everyone's indulgence with that. I would recognize the gentlelady from the state of Texas, Ms. Jackson Lee. Ms. Jackson Lee. Let me thank the Chairman and the Ranking Member for the beginning of a series of very important hearings, and these witnesses, who hopefully are being part of history today as we try to look at this large question of immigration reform. I want to acknowledge the American Farm Bureau by acknowledging the Texas Farm Bureau, who I have had the pleasure of working with very often. It just shows that in Texas, you can't run away from our true roots. So I am delighted to see you here and to have the insight that you are giving to us. I want to, before I start my questioning, to just emphasize that I believe that there is a sense of urgency. It should be a sense of urgency on moving forward on comprehensive immigration reform. What we are gaining today is to understand, as I have done for over a decade now, having had witnesses such as many of you before this Committee before, that there are pieces of the immigration puzzle that have distinctive needs. But I don't believe we can ride one horse into the sunset and have the kind of approach that will help any of you, that as we fix what you need, we still need a system of a comprehensive approach because the very tradition of farming in many instances, except for family farms, is you do want workers who are consistent, skilled, but I think you all can see that maybe at some point, it may differ now in 2013, those workers may go somewhere else. Maybe they are assisting in poultry, and they may go on to some other area. And then, as in every profession or every work site, new ones come in. But you need a consistency. Your business needs to stay in place; you need a consistency. I don't think we can get there when we say we can fix this, and then we leave a whole gaping hole and leave out comprehensive immigration reform. I serve as the Ranking Member on the Border Security Subcommittee, maritime security, and we met this morning, and I said the same thing, that it must be a continuum between border security and comprehensive immigration reform, securing the border. But I also said that you can't move one without the other, because you need to have a certainty on the side of the immigration process in order to ensure that our friends at the border, the resources, the new way of approaching it, having outcomes, will be able to discern those who are here who are intending to do harm or the cartels or the drug violence versus individuals who are seeking to better their lives. So let me go to Mr. Kashkooli on, I think, a package that you gave us. I was trying to recount from your testimony what you would be interested in and having the right kind of package. Why don't you continue to expand? Could you expand on this concept? Is this your concept, tying the workers to a contract, and then the Federal Government protect their status as workers? Could you just expand on that? Mr. Kashkooli. Sure. For employers who want to have a contract and the security of a contract with workers, we want to see the protections that are in the H-2A program. We want to see the H-2A program. And those protections are wage protections to make sure that farm workers are given the average wage, housing, transportation, and that they have some kind of security that they will be getting at least 75 percent pay for the work. I want to just emphasize what that means, because we have been talking about---- Ms. Jackson Lee. And my time is short. Can I just interrupt with a question that Mr. Brown and all others can answer? Mr. Kashkooli. Absolutely. So those are the big things. And when we say wage rates, what we are looking for is the average wage rate of what is paid. In South Carolina, that is $9.78. So for someone working for 27 weeks, 40 hours a week, which is a job order, we are talking about $10,562. Ms. Jackson Lee. For that particular skill? Mr. Kashkooli. Yes. Ms. Jackson Lee. And let me just say that I view that as a skill, and I don't like the issue of high skill/low skill. But my question would be would you take the workforce from the existing undocumented individuals, and I know the H-2A, or are you leaving the pathway open for others to come as H-2A? So let me ask, because we have a population of those who are here in the United States. Mr. Kashkooli. Right. Ms. Jackson Lee. And their difficulty is when they finish, they have the protection of being on a site when they are doing their farm work, which is seasonal. Then they are left, in essence, without status, without a job, because it is seasonal. The question is do they go back? Do they stay? If they go back, because they are undocumented, they can't get back in. So let me just ask, are we talking from the existing base of workers, or are we recognizing that there may be caps on what we can bring in? Mr. Kashkooli. We want to see existing farm workers, the farm workers who have the skills, who are feeding us right now, be able to earn a roadmap and a legal path to citizenship. Ms. Jackson Lee. Mr. Brown? Mr. Brown. Our industry is uniquely different than the other industries at the table as far as the production of agriculture that is dependent on H-2A seasonal, and we are on the manufacturing side of agriculture. Ms. Jackson Lee. Meat packing. Mr. Brown. So we assume that the employees in our industry are eligible to be employed by passing through E-Verify. Now, when we are talking about a visa program from our industry's perspective, we are looking at the future for when legislation does pass that recognizes those that are in the country now undocumented as legal. Once they are recognized as legal, they can continue to be employed wherever they so choose, whether it is on a farm, whether it is in a meat plant, where have you. We also recognize the challenge that work groups do move and migrate, as all of our people have through industries. In good economic times in this country, people will gravitate toward other jobs. So we then recognize a work shortage. We want to expand the current visa category and perhaps a new category outside of the H-2A program, or if H-2A can accommodate it, then we would look at that. Ms. Jackson Lee. Mr. Carr? Mr. Gowdy. The gentlelady's time has expired. Mr. Carr, if you want to answer it---- Ms. Jackson Lee. Thank you, Mr. Chairman. Mr. Gowdy [continuing]. As quickly as you can, that would be great. We are 2 minutes over on this one. Mr. Carr. Thank you, Mr. Chairman. Yes, I would like to answer that question. First of all, agriculture is united in the fact that we do need to keep our labor force that is here presently working. So we need to put them into a lawful status that allows them to continue to work in agriculture. But by the same token, history will show you that when we did this in 1986 and we gave amnesty to 1.1 million agricultural workers, they very quickly left the farm. So any type of proposal has got to have a valid guestworker program that is going to provide us a future flow of future workers into this country legally. Ms. Jackson Lee. Thank you very much, Mr. Chairman. I think we have some challenges to respond to ahead of us, and I think we have some complexities that can be handled in the comprehensive immigration reform. I yield back. Mr. Gowdy. I thank the gentlelady from Texas. The Chair would now recognize the immediate past Chairman of the full Committee, the gentleman from Texas, Mr. Smith. Mr. Smith. Thank you, Mr. Chairman. Mr. Chairman, I have three concerns, and what I would like to do is address one concern to each of three witnesses. The first concern is this, and, Mr. Kashkooli, let me ask you to respond. In 1986, we had a special agricultural worker program. It was riddled with massive fraud. After the program went into effect, the Government Accounting Office said that two-thirds of the individuals who had been approved as guestworkers were fraudulent. About 1 million people were expected to qualify as being eligible; 3 million people were approved. How do we avoid fraud on that scale if we have another guestworker program where virtually anybody can apply for it, and how do we avoid what happened in 1986? We had hundreds of taxi drivers in New York City qualify as ag workers and obviously were allowed to stay in the country. Mr. Kashkooli. So I certainly hope we have all learned our lesson. In the ag jobs proposal, there was a pass work requirement and a future work requirement, so I think that is the first. That is important. Mr. Smith. But the problem with fraud is that nobody checks that. That is what happened in 1986. We just simply don't have the resources, the personnel, to check to make sure that that individual actually worked where they said they worked. That is why we had the New York City taxi drivers claiming to have worked on local farms, and clearly that was not the case. Mr. Kashkooli. So what we have proposed and in the past had agreed on is that there would also be a future work requirement to work in agriculture, and my understanding is that any proposal that we talk about in a comprehensive way would include E-Verify. So I think that is a basic way to make sure that we get rid of fraud. Mr. Smith. I don't know that E-Verify is going to block someone from becoming eligible for a guestworker program because E-Verify or any other biometric system that we might come up with is just going to check a single identifier. It is not going to check background or work or anything else. In other words, we recognize that we are trying not to repeat some of the same problems, whether they be with enforcement or anything else that we had in 1986, and I am just not convinced yet that we have come up with any way to avoid the massive fraud that occurred in 1986. We will have you just discuss that a little bit more, if we could. Mr. Stallman, nice to see a Texan here. A question for you, and I think you may have addressed it earlier to some extent, but I would like to follow up on it. My second concern is the endless pipeline. You have individuals admitted to work in this country, and if they can work in more than one location, you have the endless pipeline as they move on to other jobs, and meanwhile the need is still there, so they are followed by more individuals who are admitted to work who then leave that job and move on, and you end up with millions of people coming into the country not working in the jobs that they were requested. Mr. Stallman. Well, our proposal is not an open pipeline. It is restrictive and---- Mr. Smith. You limit it to the ag field, right? Mr. Stallman. Yes, yes. Mr. Smith. Okay. Mr. Stallman. It is a proposal where ag employers have to register with USDA first to be able to provide a valid job to these individuals who come in either under an 11-month portable program, that is our portability program, or under a longer- term contract program. Now, these employees have the ability to move from registered employer to registered employer, but they are time-limited, and also they can be tracked. Mr. Smith. I think you have narrowed the diameter of the pipeline there, but I still think you have a modified pipeline, because individuals who are needed to pick peaches in the hill country of Texas might leave, and then you are still going to need people to pick peaches in the hill country of Texas. Then you still have that phenomenon, I think, to some extent. Mr. Stallman. Well, if they leave the program, they would be out of status. Mr. Smith. No. But they can move from that job to another job, is the point. Mr. Stallman. To another ag job. Mr. Smith. To another ag job. So you are still leaving the original grower with a labor shortage that has to be filled. Mr. Stallman. But as long as you have the capability, if need is demonstrated and you don't have domestic workers willing to do it, as long as you have the ability to bring in those workers, I mean, there is not going to be an unlimited number of agricultural jobs. Mr. Smith. Right, right. So you hopefully hit that, and then we will see if that works. I hope it might. We will find out. Mr. Brown, my third concern is this. If individuals are admitted to this country as guestworkers and they stay here for any substantial length of time, then they are not guestworkers, they are permanent workers. But that occurs because they are not going home. If you have someone here for 3 years who doesn't have to go home until the 3 years is up but only has to go home for a very short period of time during a several-year period, I don't think they are ever going to go home, particularly if family members have been able to join them and so forth. That is why I think a true guestworker program--and I see my time is up--would be a short guestworker program. Real quickly, can you respond on that? Turn your mic switch on there, yes. Mr. Brown. I would respond in two ways. One, there are ways to track these people currently, and there are ways to improve E-Verify, with E-Verify Check. But also when we bring---- Mr. Smith. I am talking about the length of time now. Mr. Brown. But when we bring guestworkers into this country, we can establish through E-Verify electronic data for an exit visa. So the government will know when the time is up and prevent them from going to another---- Mr. Smith. But do you think they should go back every year for some period of time, or do you think they should be allowed to stay for many years? In which case, I would argue they are no longer temporary or guestworkers. Mr. Brown. I think there should be a path to legalization, and I am going to leave that judgment---- Mr. Smith. You are going in the opposite direction. Okay. But that is not a guestworker program. Thank you, Mr. Brown. Thank you, Mr. Chairman. Mr. Gowdy. I thank the gentleman from Texas. The Chair would now recognize the gentleman from Illinois, Mr. Gutierrez. Mr. Gutierrez. Thank you very much, Mr. Chairman. First of all, I have been here 20 years and I have never seen a panel put together like the one that we have before us that has been put together by the Republican majority and with invitations from the Democratic minority in which I have to say that in each and every instance, all of the witnesses, I am able to share values, I am able to share perspectives with you, I am able to sympathize, I am able to say that is how I think. Now, I think that bodes well for finding a solution to a problem. So I just want to say to all four of the witnesses-- Mr. Gowdy, I want to congratulate you. I want to say that the first set of witnesses that we had from the STEM industry was very much the same; that is, people giving their perspective so that Congress can find a solution. What an incredible thing. I think that that is exactly what is going to happen here. I think that is part of the magic of the moment in which we live in, number one. Many people question why I would leave 20 years of seniority on the Financial Institutions Committee to come here and be a junior member. I would tell you, the answer is right here, because all of the Members of the Subcommittee showed up, and all the witnesses have brought information that helps us solve a problem. So that is why I came here, because I thought that that is exactly what the men and women of this Committee were going to do independent of their political affiliation. They were going to look for a solution. I think the testimony that all of you have given today is a reflection of that. Now, I want to say to Mr. Carr, I want you to be a successful farmer, and I want you to have the workers that you need, and I want you to have the reliable workers. I want you to have happy workers. I want you to have American workers. I want you to have people who share the same bond to this country and to that land that you and your parents and your grandparents shared with that land. I want them to adopt this and make it their own, as I am sure you have made it your own, and your family has. So that is always going to be where I look at this particular issue. So I think, Mr. Stallman, as you begin to talk about a pathway to legalization--and let me just say, as Democrats, when we first introduced bipartisan comprehensive immigration reform in 2005, I did it with Congressman Flake here, and Colby, and it was Kennedy and McCain. The first of 700 pages, the first 400 were enforcement issues, with E-Verify there. So we passed that stage a long time ago. The Democrats have always been, and those who believe in comprehensive immigration reform and are looking for solutions understand that we need a verification system, because I don't want another underclass of immigrants in this country again. I want to end illegal immigration and undocumented workers once and for all in this country, and I think that that should be the solution that we are looking at. So I want to say to Mr. Brown, look, I am ready to see what we need to do with dairy and poultry and those that pick garlic and those that pick lettuce and tomatoes and peaches and see how it is we categorize them. Whatever makes the most sense for productivity and for putting food on our tables and making sure that America is independent, because I think Mr. Carr makes a great point. We talk about energy dependence and the dependence on oil. We are quickly going to become a country that is going to be dependent on the fuel that Americans need each and every day as human beings, and that is food to put into our bodies and to fuel ourselves. So I think that is the place where I am going to be at. So I want to thank the Chairman. I want to say to Zoe Lofgren, I am so excited to be working with both of you and under your leadership in this Committee. I have just one question that I want to put, because I want to be also true to who I am and the values that I bring to this. So I guess I will ask Mr. Stallman. If Mr. Kashkooli organizes workers, do the members of your association, do the farmers have the right to fire one of your workers on one of your farms for joining a union and organizing in that union? Do you think that is right, that they should be able to be fired? They are doing a great job. They are picking the peaches. They are picking the grapes. They are picking the lettuce. They are picking the tomatoes. They are a great worker. But they decide to join a union. Should that farmer be able to fire that worker for joining a union or organizing a union? Mr. Stallman. We, in our proposal, have basically indicated that we do not want an expansion of collective bargaining rights beyond where they are now. Mr. Gutierrez. But what does that--I am in the union. I am picking on Mr. Carr's farm peaches, and I am doing a good job of picking peaches. I doubt that I could do it, but just let us for a moment imagine that I did, and I wanted to join a union. Should Mr. Carr be able to fire me for joining that union even though I am doing a good job in every other respect? Mr. Stallman. If South Carolina is a right-to-work state, which I believe it is currently, they should have the ability to do that. Mr. Gutierrez. Thank you. Mr. Smith [presiding]. Thank you, Mr. Gutierrez. The gentleman from Iowa, Mr. King, is recognized for his questions. Mr. King. Thank you, Mr. Chairman. I want to thank all the witnesses. I think this is an excellent panel, and I appreciate you coming and delivering your testimony here before Congress today. I listened to the testimony that is here, and I am hearing from interests along the way that our jigsaw puzzle pieces to the broader picture of what America has become and what America will become, depending on what decisions are made in this Immigration Subcommittee and in the fuller Judiciary Committee and by the voice and the will of the American people, hopefully reflected here by the United States Congress. I usually think that we should address these problems by asking the bigger questions first. For example, there is something over 6.3 billion people on the planet. We know feeding them is a very difficult task, and that is what we are trying to get done. How many people would come to America if we adopted an open border policy? I ask that question rhetorically. I know no-one can deliver the answer to that, but we have to ask that question. We will have to answer that question, because each time that we open this up, it opens another gate, and we can't count the number of people who will come through that, but it was 1.1 million under the '86 act, and Chairman Smith said, and I agree, it is the numbers I have been dealing with, over 3 million people actually came through that gate. How many might come through a limited gate in a guestworker program? We don't know that answer, but it has always been more than has been announced. There are 11 million people here illegally. Well, some of that data holds up, and some of that I question. I think the number is larger. But those are things that we have to answer here as a panel, and I don't want to put you all on that particular spot, but I would ask this. If we do a guestworker program and the question becomes, as Mr. Smith said, they become permanent residents under anything that we can devise, one of the things I would suggest is if we go that path, why not bond those workers so that we can ensure that they do return to their home if it is going to be a guestworker? I ask first Mr. Stallman if you and your organization can support a bonding philosophy and insurance. Here is what I do in my business. I guarantee that I will perform on the contracts that I enter into. So if the employer or the agency that he hires can post a bond that says we will ensure that they will go back home at the end of this period of time and then there will be no claim on the insurance, that would guarantee that. That would be the bonding concept. I would guess from the look on your face that you have not discussed that. Is that correct? Mr. Stallman. That is correct. Our program depends on setting up a legal structure for the process to occur, and then having an enforcement mechanism with technology and biometric identifiers and all of those things. The enforcement technology is available to where you control what happens under that visa. They are not flowing into the country in an unlimited fashion or staying. Our proposal contemplates returning back for certain periods of time, returning back to their home country. Mr. King. We have seen the lack of enforcement since '86, and I would submit that since the '86 amnesty act was passed, there has been a decreasing enforcement of our immigration law in each succeeding Administration. So we are back to this question that all of this is predicated upon enforcement of the law, and I am suggesting instead that some of you have testified you would like to see the market forces take care of the migration. Why not allow the surety companies to take care of the law rather than the Administrations, that have demonstrated they will not do that? I would just ask you this. Would you be open to that kind of discussion, to nail down a better way to ensure that the law would be enforced? Mr. Stallman. We are always looking for better ways for the law to be enforced. I think the problem that would exist with a bonding requirement, as we envision this program working with portability for workers, is who is going to be responsible? Mr. King. Exactly. Mr. Stallman. We are basically allowing workers to work for multiple employers, which meets the needs of agricultural employers. Mr. King. And if you had the bonding, and then the financial services portion of this would make that insurance, and we wouldn't have to rely upon the government to enforce the law. I would pose another one here to Mr. Brown. And that is, would you agree that wages and benefits knowingly paid to people who cannot lawfully work in the United States should not be tax-deductible as a business expense? Mr. Brown. We would support any enforcement proposal that guarantees or helps to guarantee that the people we are hiring are eligible, and if that is part of the component, then we would support that. Mr. King. And if we were to amend E-Verify so that prospective employees could be utilized, and also that current employees could be checked by the employer? And when I say utilize, utilize E-Verify for prospective employees and current employees. Would you support that so that an employer could clean up their workforce if they chose? Mr. Brown. Being an industry that has used the program for over 20 years, we would find it very difficult to expand E- Verify until it is fixed. If E-Verify is fixed and we can get past the issues outlined in my testimony, then we would be for expanding E-Verify's use. But currently, Congressman, you cannot determine other than whether a name and a Social Security number matches. That is why people get through the net on the one hand, and enforcement comes our way. On the other hand, if we are too aggressive without something similar to Self Check, then we are set up for the discriminatory provisions. So we will work with every Member of this Committee to make E-Verify effective, and our industry will use it 100 percent. Mr. King. I thought your recommendations on that were solid, and I am glad that you followed through and fleshed it out. I see that I am out of time. Mr. Chairman, I thank you and I yield back. Mr. Smith. Thank you, Mr. King. The gentleman from Florida, Mr. Garcia, is recognized for questions. Mr. Garcia. How are you gentlemen doing? Let me just reiterate, I think the position on this side, we want agricultural workers. As you may or may not know, we have a densely packed agricultural area in my district. It is the most productive land. But we have some of the similar problems that Mr. Carr is talking about. I don't think anyone there would agree with the statement that we have been decreasing enforcement, right? I don't think any of you would think that that is what is going on, right? You can say it into the mic. It's all right. We can hear you over here. Mr. Stallman. Based on the reports from our members in various parts of the country, it seems like enforcement by ICE has been increasing. Mr. Garcia. Right. Mr. Carr? Mr. Carr. Not just by ICE but by the Department of Labor it has been increasing quite a bit. Mr. Garcia. Mr. Brown? Mr. Brown. ICE, Department of Labor, and Department of Justice. Mr. Garcia. That's good to hear. Mr. Kashkooli. ICE enforcement is absolutely up. All you have to do is look at how much it costs for somebody to get across the country. That market is working. Mr. Garcia. We spent $18 billion on enforcing the border. That is more than we spend on the FBI, DEA, and all other Federal law enforcement. We had negative immigration last year. So I clearly understand your position. I had a meeting with my farmers last week. We were not here working, so I was meeting with some farmers, and my farmers said--at one point I said to my farmers--I was trying to be sympathetic. I said, you know, we need to get these folks documentation. They all smiled. A few of them chuckled, and they said, well, Congressman, they all have documentation. Whether it is real or not, we have no clue. Which I think basically spoke to the truth, that they don't have documentation. Here is what I know. I know I can be in a canoe in Thailand and buy a mango for 15 cents, and the 15 cents at my home in Miami. The reality is we can figure out who they are and where they are if we really want to, and I think some of your positions on E-Verify make sense. I think these should be agricultural workers. I don't think they should be able to move to another line. The farms in my district are relatively small, the nursery business or the tropical fruit business. They work for a few months, and then they go up to Wisconsin to pick cherries, and then they come back and they work on the perennials. These folks want to work the land. You know, Mr. Carr, I tend to think of the American worker as the greatest worker in the world. They are certainly the most productive worker. Obviously, your experience is not the same. So I have to assume that these are super-humans we are importing to do our work. Why is it that these people work harder than native Americans? My grandfather was a gardener, so I worked with him, and I know what it is to do back-breaking work. So, what is the matter? Mr. Carr. In my opinion, what you are looking at is they are wanting to live the American Dream. People that have been here in this country, we are living it every day. People that are coming in on these immigrant programs, the guestworker programs, this is a pathway to a better life for them, so they are willing to work hard. I am not saying that they work harder than the Americans that we have. What I am saying is that the Americans we have here are not willing to do the jobs that we have at the farm level. Mr. Garcia. Well, these are pretty special people, so I think they deserve treatment of some sort. I know we are sympathetic. I know you guys are in a tough place. I deal with farmers all the time in my district. I know you are trying to do right by them, just like I know those who organize laborers are trying to do the right job. But we need something that gives them some ability to make you compete for their work, but obviously most of you are too small to do contracts or contracts that lock them. I know that in the dairy industry, we may have to look at a special type of relationship there. But I am sure that on your farm it is seasonal, too. So they get to work other places, too. Correct? Mr. Carr. That is correct. I am farming seasonal, which is part of the problem with the program. Mr. Garcia. Correct. Mr. Carr. Right now, the program requires employment to be seasonal in nature. What we need to do is put the seasonal nature on the worker and make the worker have a home tie to his home country, so making him temporary but not the job. Therefore, my company has progressed from 16 weeks a year harvest to 38 weeks a year harvest. I am bumping the boundaries of being able to participate in the program. This program needs to expand to all of agriculture no matter what your employment needs are, but let the worker be temporary in nature but not exclude anybody from participating just because your job is year round. Mr. Garcia. Very good. Mr. Chairman, I yield back the balance of my time. I appreciate it. Mr. Smith. Thank you, Mr. Garcia. The gentleman from Idaho, Mr. Labrador, is recognized for questions. Mr. Labrador. Thank you, Mr. Chairman. I read recently that Chamber and labor groups have come to an agreement in which they have agreed to principles regarding a new guestworker visa program, and one of the issues they agreed upon is the need to have a new government agency to analyze the market and come up with the right numbers of visas to issue. Mr. Stallman, is there currently a cap on the number of visas that are issued through the H-2A program? Mr. Stallman. The visas that are issued are subject to indicating the need. I don't know if there is---- Mr. Labrador. There is no cap, right? So even though there is no cap on the number of visas that are available, the program that I hear the most complaints about in my office is actually the H-2A program. It is quite problematic. I was an immigration lawyer for 15 years. I heard a lot of those complaints as well. It is so bureaucratic and inefficient that many employers actually prefer to work outside of the system and they are not working within the system, and I hear the same about the H-2B program, which is no better. In fact, just recently I had a constituent in my office whose livelihood depended upon receiving a piece of paper from the Department of Labor. He was waiting for the Department of Labor to approve the certification, and he flew all the way across the country. He came all the way from Idaho to Washington just so he could sit at the Department of Labor and wait for somebody to give him an approval so he could get the bureaucratic permission to proceed with his business. We need to figure out how many visas are needed, as the Chamber and labor groups are saying. But I am not sure that a new agency is the right way to do it. What are your thoughts about that, Mr. Stallman? Mr. Stallman. Well, I am not sure a new agency to determine the number of workers and putting caps is the right way to do it at all. Our program is based on the concept of demonstrating need and having a market-based presence, basically, to allow those to come in to meet whatever the market needs. Some type of artificial caps determined by an agency of the government is probably not going to work very well for agriculture because agriculture's needs are very variable, and government response to addressing those needs in terms of assessing the number of visa permits or the number of individuals that need to come in will probably fall behind the curve. Mr. Labrador. What are your thoughts about that, Mr. Carr? Mr. Carr. I do believe that a new agency needs to administer this program. First of all, it is in the Department of Labor right now, which currently has put all the regulations on the program, which prevents most employers from using it. By putting it in the USDA, an agency that is used to working with the farming industry, you can leave enforcement in the Department of Labor. But actually administering the program, I do believe it needs to move over to the USDA, who has the background of working with farmers in administering farm programs. Mr. Labrador. And do you think the Federal Government should be determining what the needs are of the farmworkers, or do you think that we should allow the market to? Mr. Carr. Currently, the H-2A program is uncapped, and I believe that any future program should be uncapped. If you create a system that has been put out there by the AWC, and you have a portable visa and a contract visa, within a certain amount of time and whatever you do with the adjustment of workers, you will fill up the workforce, and then your basis will be there. The transition and understanding what the transition is going to look like and putting an artificial cap on it could hinder business and continue to move operations outside our borders. Mr. Labrador. Mr. Kashkooli, you said in your testimony that you want the free market to work, but the free market is not an unlimited supply. I was a little bit confused by that statement. What is the free market if---- Mr. Kashkooli. Well, it shouldn't be an unlimited supply of minimum wage labor. What we are talking about is that there needs to be certain guideposts. Right now in the country, there are 600,000 U.S. citizens and legal residents who are professional farm workers. There is an additional million or so farm workers that we hope will be able to earn legal status through this program. So the Department of Labor's job should be to make sure that, at a minimum, that U.S. workers, their wages are protected, that we have some kind of opportunity for them to get the job, and let us be clear about what we are talking about here. We are talking about the farm worker who is a U.S. citizen who right now is making maybe $10 an hour. If another employer can bring in a job at $8 an hour without having to offer that job to the person who is making $10 an hour, the job at $10 an hour, of course, that person is not going to apply for that job. So that doesn't make sense. So a program that would allow an unlimited supply of people making minimum wage, that is not a market---- Mr. Labrador. So who determines the supply? Is it going to be some government agency here in Washington D.C.? Is that what you want? Mr. Kashkooli. That is not actually what the United Farm Workers have suggested. Mr. Labrador. So what are you suggesting? Mr. Kashkooli. We think there are a number of ways you can do it. In the H-2A program, that is a program that does not have a cap right now. So that program is always going to be available. We think you should take the number of people who are going to earn legal status through the new program and allow other visas to be added based on the number of those people who leave. We do think that there does need to be a basic wage test. If farm worker wages on average are going down, then by definition there is going to be an oversupply, and therefore there shouldn't be any new visas based on the average farm worker wages. And it is not, in fact, that complicated to get the average wage. The USDA does this every year. They get the average wage that farm workers are paid and, by definition, it is an average. So some employers don't like it because they have to pay a little bit more. Some farm workers don't like it because, therefore, they are getting paid less. But it is actually not that complicated. The USDA does it every year. Mr. Labrador. Thank you. Mr. Smith. Thank you, Mr. Labrador. The gentleman from Puerto Rico, Mr. Pierluisi, is recognized for questions. Mr. Pierluisi. Thank you, Chairman. I have a couple of questions for Mr. Brown. I saw from your testimony that you and your coalition of food manufacturers support an earned legalization program for undocumented immigrants living in the shadows. You specifically stated that Congress must provide a fair and practical roadmap to address the status of unauthorized immigrants. What, in your view, what would be a fair and practical roadmap? And would it include or would it bar immigrants from ever attaining citizenship? Mr. Brown. Our coalition doesn't go that far, sir. But I would say that we would begin with the thought that if we are talking about undocumented workers, that we would be talking about a pathway forward for people that are actually in the country now, working and contributing to the system. I think that would be the pool of people that we would be referencing. Mr. Pierluisi. I also notice that you discuss the many benefits that immigrant workers bring to the communities in which your coalition has its businesses, including paying taxes, preventing shrinking school enrollment, and keeping businesses alive in communities with declining populations. Can you expand on the benefits to rural and distressed communities from growing immigrant communities? Mr. Brown. Absolutely. As the son of an immigrant, there are many attributes that they bring to communities, from their cultural aspects, it could be religious aspects, working with boys and girls in the various sports programs, et cetera, working with law enforcement, the entire cultural experience, the fabric of our society is supported with these people. Mr. Pierluisi. I will address these next questions to either Mr. Stallman or Mr. Kashkooli. When I think about farm workers, I immediately think about their wages and working conditions. I just heard that the H-2A program doesn't have cap. But I know that it does have certain requirements that discourage employers from seeking more workers than they need, and that is what comes to my mind. It seems it would be in the interest of employers to bring in as many workers as possible, because under the laws of supply and demand, a large supply of workers will lead to lower wages. Yet, these lowered wages and working conditions would harm farm workers and could lead to U.S. citizens losing jobs to foreign workers from poorer countries. It sounds to me like a cap makes sense. We should have a cap on any guest farm worker program. Mr. Kashkooli. The United Farm Workers agrees with that position. There is a program right now, the H-2A program, that does not have cap. That is okay. There is a set of protections to make sure that people are not abused. They are imperfect. We would like to see the protections stronger. The employers would like to see them in a different direction. But, yes, any new program we think needs a cap. Mr. Pierluisi. Would you agree with that, Mr. Stallman? Mr. Stallman. No, we do not agree with a cap because of the variable needs of agriculture and how quickly those needs can change. That is why we are promoting a market-based program that will allow the market to make those adjustments. An ag employer can indicate that they need positions and workers who wish to come in and work for the conditions that exist, which in many cases will be wages that are above minimum wage for sure, and as we have already talked about, the average is over $9 an hour. So the question is, to establish that workflow to meet the needs that exist, if you used a market-based program, you can do that, and we don't think a cap is suitable because if someone gets the cap wrong, agriculture gets hurt. Mr. Pierluisi. I yield back. Mr. Smith. Thank you, Mr. Pierluisi. I would like to recognize myself to ask a follow-up question that came to mind as a result of Mr. Pierluisi's questions. You responded by saying you believe in a market- based approach. One concern I have and that I am sure you have as well is that oftentimes the government does not give us the statistics or the figures or the metrics for the information we need for a market-based approach until after 6 months or a year, or sometimes 2 years. So how would you be able to respond in a timely way if you are not getting those figures or statistics for a number of months or perhaps a year? Mr. Stallman. And that is the whole point in not allowing the government to set artificial wage rates, as they do in the H-2A program. What we are talking about doing is an ag employer can indicate that there is a need that cannot be filled with domestic workers, and then they will be a pool, if you will, of workers that are willing to come in. Mr. Smith. But aren't you going to be dependent to some extent on what the unemployment rate is among some of those workers, or not? Mr. Stallman. I suspect an unemployment rate among those workers or those that aren't working, particularly if they are there under the program we have envisioned and they have portability, they will be moving to where the jobs and the wages are. Mr. Smith. Okay. That is a pure market approach, and it is reliant upon, as you say, no government information whatsoever. Is that correct? Mr. Stallman. Well, the government role in this is to establish the structure of the visa program and the restrictions---- Mr. Smith. Right. No, I am talking about as far as unemployment figures or anything else. You are not going to respond to anything the government does. Mr. Stallman. Because you would have to do a correlation directly with specific agricultural jobs, because you can't do it in general. Mr. Smith. Okay. Thank you. That answers my question. No other Members are here to ask questions. Thank you all for your testimony today. It was very, very helpful, and appreciate your input. [Whereupon, at 4:40 p.m., the Subcommittee was adjourned.]