USDA freezes farmer funding for some programs

The US Department of Agriculture (USDA) has frozen some funding for farmers as it goes through a sweeping review, despite assurances from the Trump administration that programs helping farmers would not be affected in the government overhaul.

The impact has been immediate and wide-ranging, from cash assistance for ranchers to fix cattle watering systems to help for corn growers wanting to plant cover crops that curb wind erosion.

Some of the money that has been frozen is tied to environmental conservation programs that were funded by former President Joe Biden’s signature climate law, the 2022 Inflation Reduction Act, which included about $19.5 billion for farm programs over 10 years.

The White House said its January 27 proposal to freeze federal loans and grants would not affect programs for farmers. The administration rescinded its proposal and it has been temporarily blocked in court. The White House did not respond to a request for comment on Friday.

The freeze adds more economic uncertainty for farmers already struggling after several consecutive years of incomes dragged down by low crop prices.

It also comes as a surprise to a community that voted overwhelmingly for Trump in the past three presidential elections. His first term brought farmers record cash: about $217 billion in farm payments, including crop support, disaster and aid programs.

Rob Larew, president of the National Farmers Union, told the Senate Agriculture Committee on Wednesday that the group was hearing from farmers across the country who were not receiving expected payments from USDA conservation programs.

“Having USDA delayed with a lot of uncertainty about whether or not it will actually come through is adding to that economic pressure in the countryside,” he said.

Missouri cattle producer Skylar Holden posted a series of videos on TikTok this week, saying he had signed a contract with USDA’s Natural Resources Conservation Service for $240,000 for improved water lines, fences and a well.

But USDA officials called him recently to tell him his contract with NRCS’s Environmental Quality Incentives Program, or EQIP, was frozen, he said. It’s not clear when the funds will be released, Holden said in his video.

“I’ve already done a bunch of the work, already paid for the material and the labor, so I’m out all that cost,” Holden said in one video, adding, “We are possibly going to lose our farm if NRCS doesn’t hold up their contract with us.”

The program aims to help farmers maintain or improve production while conserving natural resources.

A USDA spokesperson said all federal agencies have been asked for such program reviews.

“The Department of Agriculture will be happy to provide a response to interested parties once Brooke Rollins is confirmed,” and has analyzed them.

Rollins, Trump’s pick to run the farm agency, was advanced by the Senate Agriculture Committee this week but has not yet received a full Senate confirmation vote.

The US Office of Management and Budget has asked USDA for information on 409 programs, according to an OMB document reviewed by Reuters, including the names of political appointees that oversee each program and any funding obligations the programs have through March 15.

USDA’s funding pause extended to programs beyond those supported through Biden’s signature climate law, according to a letter sent to USDA on Thursday by three Democratic Party lawmakers.

“Pulling the rug out from these recipients runs counter to the mission of the USDA and will quickly and significantly cripple economic development in rural America,” the letter said.

One program targeted in the funding pause was the Partnership for Climate-Smart Commodities, where USDA said it is investing $3.1 billionin 141 projects to help farmers enroll in conservation programs.

One project provided assistance to Midwestern farmers to grow organic grains, while another focused on bolstering potato farm operations in Idaho, Washington and Oregon.

The funding for the contracts came from the Commodity Credit Corporation, a financing institution established during the Great Depression.