I-1433 and Farmers Pt 1

With today's Fruit Grower Report, I'm Bob Larson. Voters are deciding next week on raising the state's minimum wage to $13.50 by 2020, and for the first time require all employers to give up to one hour of sick time for every 40 hours worked.

But what will the impact of initiative 1433 be on farmers? ...

MADI CLARK ... "From an agricultural perspective, 1433 creates this huge wage jump all at once. We've always had a state minimum wage that was higher than the federal minimum wage. It's increased based off of the CPI. And that increase has always averaged about 3% per year, but when it comes to 1433 it jumps up significantly."

The Washington Policy Center's Madi Clark says that and the sick time requirement would be yet another increase in regulations that almost always hit the small farmers hardest ...

MADI CLARK ... "When I ran the numbers, of course the small to mid-sized farms are the ones that have a disproportionate cost. They will average about a 25% expense of labor. If you average all the farms, it's only 16%. So I know that's diving in deep into the numbers, but small farms already have a higher portion than other farms. So when we increase it by a 40% increase in labor costs, you're going to hurt them more."

Clark says the added financial burdens would likely force some small farmers out of business.

Listen tomorrow when we talk about how 1433 could cost an additional $2.4 billion in labor costs alone and force some crops out of Washington state.