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Unemployment Insurance Possible for,Big Farms
An extensive study has shown coverge can be feasibly extended
unemployment insurance to workers on large farms.
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Secretary of Labor Peter J.
Brennan has informed
Congressional leaders.
“The costs of providing
unemployment insurance
protection to farm workers are
not prohibitive to farm em
ployers or to the Unemployment
Insurance (UI) system as a
whole,” the Secretary said in a
letter to House Speaker Carl
Albert; Vice President Spiro T.
Agnew; Rep. Wilbur D. Mills,
chairman of the Committee on
Ways and Means; and Sen.
Russell B. Long, chairman of the
Senate Finance Committee.
The study was specifically
mandated by Congress in the
Employment Security Amend
ments of 1970 after an Ad
ministration effort to bring farm
workers under UI was defeated.
President Nixon expressed
disappointment about the failure
to include farm workers and
indicated an intention to
resubmit such legislation.
To determine whether farm
worker coverage would be
feasible, the study was un
dertaken by the Manpower
Administration of the Labor
Department in collaboration with
agricultural research experts
from 12 land-grant universities.
Data were gathered in 18 states
covering:
+ 53 percent (404,000) of the
770,000 farm workers who would
have been brought under UI had
the legislation been in effect in
1969.
+ 57 percent (31,420) of the
55,000 employers who would have
been subject to such legislation at
that time.
Given the prevailing trend
toward consolidation of farms
and a corresponding reduction of
workforce, the Labor Depart
ment estimates 65,000 employers
and 635,000 workers will be af
fected in 1975 if an enabling law is
approved by Congress. In Penn
sylvania, some 1,400 farms and
over 13,000 farm workers would
be affected.
Right now about 65 million jobs
are protected by the Federal
state unemployment insurance
program. Farm jobs are among
the few remaining kinds of jobs
still not protected.
Lancaster Farming, Saturday. April 7,1973-
The system is financed by a tax
on the employer. For purposes of
the study and suggested
legislation, a large farm em
ployer is defined as having four
or more employees in 20 weeks of
a calendar year, or a quarterly
payroll of $5,000 or more.
Conclusions derived from the
study are:
1. Relatively few large-farm
employers 125 percent) account
for most (77 percent) of the farm
workforce in the 18 states .studied
2. The cost of providing
unemployment insurance
protection to farm workers would
be reasonable under existing
state laws. In most states the
farm industry would be self
supporting. that is, contributions
from farm employers would, on
the average, be sufficient to pay
benefits to involuntarily
unemployed farmworkers
3. Non-farm employers
currently subject to the UI lax
would be only slightly affected in
16 of the 18 states studied, and not
greatly affected in California and
Florida, the exceptions In
California, it is estimated that
benefit costs as a percentage of
taxable wages would have in
creased in 1969 from 1 96 percent
to 215 percent, in Florida, from
43 percent to .55 percent
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Extension of U 1 to farm em
ployment would bring financial
aid to many migratory and
minority workers excluded from
existing social programs, the
study's authors state. Data from
14 of the 18 states reveal that 90
percent of the migratory workers
are either black. Puerto-Rican,
Mexican or members of other
minority groups About four
fifths of all farm workers arc
men. and approximately 50
percent are married.
The studies of 15 states were
primarily the work of a research
consortium of agricultural
economists Irom 12 land-grant
universities. The results from
those states are summarized in
one volume In the other three
states. California, Minnesota and
Washington, (he studies were
conducted by the State Em
ployment Security Agencies, and
each agency has issued its own
report
The participating land-grant
universities were the Univer
sities of Connecticut, Delaware.
Florida, Maryland,
Massachusetts. New Hampshire
and Vermont, as well as Rutgers
University (of New Jersey),
Cornell (New York), Ohio Stale.
Pennsylv; aa Stale and Texas A
& M
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