10 February 2025

3 minute read

The U.S. Department of Agriculture (USDA) has recently implemented a freeze on certain funding programs for farmers as part of a comprehensive review process. This move comes despite previous assurances from the Trump administration that agricultural aid programs would remain intact during the government restructuring. According to a report by Reuters, the freeze affects a wide range of financial assistance, including cash for ranchers to upgrade cattle watering systems and support for corn growers aiming to plant cover crops to mitigate wind erosion.

Among the funding being put on hold are allocations related to environmental conservation initiatives established under former President Joe Biden’s landmark climate legislation, the 2022 Inflation Reduction Act. This act allocated approximately $19.5 billion for agricultural programs over a decade, emphasizing the importance of sustainable farming practices.

In a proposal issued on January 27, the White House stated that the freeze on federal loans and grants would not impact agricultural programs. However, that proposal has since been retracted and is currently facing a temporary court block. As of now, the White House has not issued any comments regarding the matter.

The funding freeze introduces additional economic uncertainty for farmers, who are already grappling with several years of reduced incomes due to persistently low crop prices. This unexpected financial strain is particularly disheartening for a community that has historically supported Trump in the last three presidential elections. During his first term, farmers received unprecedented financial aid totaling around $217 billion, encompassing crop support, disaster relief, and various aid programs.

Rob Larew, the president of the National Farmers Union, expressed his concerns during a Senate Agriculture Committee meeting, noting that farmers across the nation are reporting delays in payments from USDA conservation programs. He stated, “The uncertainty surrounding USDA’s disbursement of funds is compounding the economic pressure on rural communities.” This sentiment echoes the growing frustrations of many in the agricultural sector who rely on timely assistance to sustain their operations.

Skylar Holden, a cattle producer from Missouri, recently took to TikTok to share his experience with the USDA’s Natural Resources Conservation Service (NRCS). Having signed a contract worth $240,000 for improvements to water lines, fencing, and well construction, Holden was informed that his funding through the Environmental Quality Incentives Program (EQIP) had been frozen. He expressed his distress in a video, revealing that he had already incurred costs for materials and labor and faces the potential loss of his farm if the NRCS fails to uphold its contract.

The EQIP program is designed to assist farmers in enhancing productivity while simultaneously conserving natural resources. A spokesperson for the USDA indicated that all federal agencies have been requested to undergo reviews of their programs. The department has pledged to provide updates once Brooke Rollins, Trump’s nominee to manage the agency, is confirmed. Rollins has recently advanced through the Senate Agriculture Committee but awaits a full Senate vote for confirmation.

The U.S. Office of Management and Budget (OMB) has directed the USDA to furnish information on 409 programs, including details about political appointees overseeing each initiative and any funding obligations due by March 15. This extensive list of programs under scrutiny signifies a broad-based approach to the funding pause, impacting more than just those initiatives funded through Biden’s climate legislation.

In a letter sent to the USDA on Thursday, three Democratic lawmakers criticized the funding freeze, stating that it undermines the agency’s mission and could significantly hinder economic development in rural America. The letter emphasized the detrimental impact of abruptly halting financial assistance to farmers and ranchers who depend on these resources.

One notable program affected by the funding freeze is the Partnership for Climate-Smart Commodities, which is set to invest $3.1 billion in 141 projects aimed at encouraging farmers to adopt conservation practices. These projects range from supporting Midwestern farmers in growing organic grains to enhancing potato farming operations in Idaho, Washington, and Oregon. The funding for these initiatives originates from the Commodity Credit Corporation, a financial institution established during the Great Depression to support agricultural endeavors.