Farmworkers pick cucumbers. An Oregon producer of cucumbers, radishes, leeks and other vegetable row crops has prevailed in lawsuit that claimed the farm unlawfully favored foreign guestworkers.

Oregon’s $10 million loan program for agricultural employers paying higher overtime wages appears to have stalled, with just over 6% of its funds disbursed as of Sept. 17.

There have been just 37 applicants for state funds, 26 of which have been successful, according to Amber Nabors, a public relations coordinator for Business Oregon, the state agency overseeing the loan program.

“Since September of 2023, we have only received three successful applications, the most recent in May of 2024,” Nabors said in an email.

Farmers are facing higher costs after legislators ended the agricultural overtime exemption in 2022, requiring them to pay employees time-and-a-half for work exceeding 55 hours a week.

The overtime threshold will decrease to 48 hours on Jan. 1.

House Bill 2058, passed last year, created a program allowing farmers making under $3 million annually to apply for loans of up to $40,000 to assist with overtime costs. The loans must be repaid within two years.

The program has disbursed just over $630,000 of the allotted $10 million since it began accepting applications in April 2023, Nabors said. The loan serves as a “bridge” until the state tax credit for overtime pay is received.

Jenny Dresler, a representative of the Oregon Farm Bureau, said she wasn’t surprised by the lack of interest.

“Our members already know that they’re going to face pressures related to the cost of labor,” Dresler said. “So that program is essentially taking a loan out on an uncertain future.”

Dresler also said that 2023 — a poor year for many crop yields — may have produced less demand for labor, which would have driven down some overtime costs.

Dresler said the Farm Bureau initially advocated for a grant program, providing “bridge relief” funds for employers.

“We did bring forward concerns that a loan program would not be used because of that uncertainty,” Dresler said. “Ultimately (a grant program) was not the policy decision that was made.”

Applications for the loan program will remain open through June 30, according to Business Oregon’s website.