AGRICULTURAL LMIA | FARM WORKERS LMIA

The Agricultural Labour Market Impact Assessment (LMIA) is a specific stream that Canadian agricultural facilities typically use when they wish to hire general labour workers or managers in agriculture and horticulture for their establishments.

Farming operations have specific requirements for hiring foreign workers due to the particularities of the industry and trends in labour shortages. As such, they typically make use of the Agricultural or Seasonal Agricultural Stream LMIA. 

In most cases, Canadian employers eligible to use Agricultural Streams can benefit from some exemptions and a streamlined process compared to other LMIA types. Below, we describe the requirements, obligations, validity, and processing times related to hiring temporary foreign workers in Canadian farming operations.

The primary factors determining whether a business can utilize the Agricultural LMIA to hire foreign workers are the types of products produced and the nature of the work. The farming operation must produce specific types of products, and all activities should be directly connected to the main farming tasks carried out on the premises. If an operation meets all the following criteria, it may be eligible to use the Agricultural LMIA to hire foreign workers:

Employers who meet the above requirements and are looking for seasonal farm workers can instead use the Seasonal Agricultural LMIA Stream if:

• duration of requested employment is 8 months or less; and
• minimum of 240 hours of work within a period of 6 weeks or less; and
• the requested employment is between January 1 and December 15; and
• they are hiring citizens of particular countries - Mexico, Anguilla, Antigua and Barbuda, Barbados, Dominica, Grenada, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago

Businesses wishing to hire temporary foreign workers to work in their farming operations need to arrange the following:

1. Transportation. Pay for round-trip transportation for the foreign worker. Provide no-cost daily transportation between housing and work location.
2. Housing. Provide suitable housing for temporary foreign workers. Housing could be on-farm or off-site. Employers can deduct up to $30 per week from worker's wage for certain housing situations. For certain job categories, rent should not exceed 30% of the worker's gross monthly earnings. If multiple workers live in an employer-owned dwelling, divide the rent equally among them. Employers must provide proof of housing inspection by an authorized body.
3. Health and Workplace Safety. Pay for private health insurance for the period worker isn’t covered by provincial health insurance. Coverage should begin on the worker's first day in Canada. Ensure workers are covered by workplace safety insurance from the first day of work. If using pesticides or other hazardous chemicals, follow provincial rules, notify workers, and provide free protective equipment, training, and supervision where required.

Generally, the maximum duration of requested employment under the Agricultural LMIA stream is up to 2 years. However, if a business offers a wage that is equal to or above the provincial median wage, they can hire farm workers for a 3-year contract.

Under the Seasonal Agricultural LMIA Stream, the maximum duration is 8 months, between January 1 and December 15.

The processing time for an Agricultural LMIA application by the Employment and Social Development Canada (ESDC)/Service Canada is approximately 2 to 4 weeks. This is considered expedited processing as general labour workers or managers in agriculture and horticulture are in high demand and are considered essential occupations.

Currently, there are a few exemptions for employers applying to hire foreign workers under the Agricultural LMIA stream:

1. They don’t need to pay LMIA processing fees, which would typically be required for other LMIA streams.
2. Until June 30, 2024, employers are not required to conduct recruitment for primary agriculture positions.

The Canadian government has facilitated the transition of foreign farm workers to permanent residency. Businesses that have employed temporary agricultural foreign workers through the respective LMIA streams can extend a permanent job offer. This offer can support these workers in securing their permanent residency through the Agri-Food Pilot program.

The Agricultural and Seasonal Agricultural LMIA streams are the most suitable for hiring farm workers. However, if not eligible for these streams, high-wage or low-wage streams are other types of LMIA applications that Canadian employers can use as alternatives.

In this article, we exclusively described the rules and additional obligations associated with the Agricultural LMIA. Like with any other LMIA stream, employers intending to hire foreign workers must be operational and demonstrate sound financial standing. They need to fulfill the basic LMIA eligibility requirements and adhere to the LMIA process.