Conservation Contracts Included in the Funding Freeze

10 February 2025

3 minute read

In a significant development, the U.S. Department of Agriculture (USDA) has announced a freeze on certain funding programs for farmers, amidst a comprehensive review of its operations. This decision comes despite prior assurances from the Trump administration that initiatives aimed at supporting farmers would remain unaffected during the government overhaul, as reported by Reuters.

The immediate ramifications of this funding freeze have been felt across various agricultural sectors. Farmers are experiencing disruptions in cash assistance programs designed to address essential needs, such as repairing cattle watering systems and providing support for corn growers seeking to implement cover crops that mitigate wind erosion.

Notably, a portion of the frozen funds is linked 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.

While the White House had stated in its January 27 proposal that the freeze would not impact programs for farmers, the situation has evolved. The proposal has since been rescinded and is currently subject to a temporary court block. As of the latest updates, the White House has not provided any comments regarding the ongoing situation.

This funding freeze adds further economic uncertainty for farmers who have already been grappling with several years of diminished income due to low crop prices. The unexpected nature of this decision has left many in the agricultural community, which has historically supported Trump in the past three presidential elections, feeling blindsided. During his first term, farmers received unprecedented financial support, amounting to approximately $217 billion in various forms of aid, including crop support and disaster relief programs.

Rob Larew, the president of the National Farmers Union, voiced concerns to the Senate Agriculture Committee, noting that farmers from across the nation have reported delays in receiving payments from USDA’s conservation programs. He emphasized that the uncertainty surrounding USDA’s operations is intensifying the economic pressures faced by rural communities.

Skylar Holden, a cattle producer from Missouri, highlighted his predicament via a series of TikTok videos. He revealed that he had entered into a contract with the USDA’s Natural Resources Conservation Service (NRCS) for $240,000 to upgrade water lines, fences, and install a well. However, he was informed by USDA officials that his contract under the Environmental Quality Incentives Program (EQIP) had been frozen. Holden expressed his frustration, stating that he had already incurred costs for materials and labor, putting his farm at risk should the NRCS not honor its contract.

The EQIP program is designed to assist farmers in maintaining or enhancing agricultural productivity while simultaneously conserving vital natural resources. A spokesperson for the USDA confirmed that all federal agencies have been directed to conduct reviews of their programs. The department has indicated its willingness to provide further details once Brooke Rollins, Trump’s nominee for the agency’s leadership, receives Senate confirmation. Rollins has recently been advanced by the Senate Agriculture Committee but has yet to undergo a full Senate vote.

According to a document reviewed by Reuters, the U.S. Office of Management and Budget (OMB) has requested information from the USDA regarding 409 programs, which includes details about the political appointees overseeing each program and any funding obligations that extend through March 15.

It is important to note that the funding pause extends beyond initiatives funded through Biden’s climate law. A letter sent to the USDA on Thursday by three Democratic lawmakers expressed concerns about the negative implications of this funding freeze on economic development in rural America. The letter criticized the abrupt withdrawal of support for recipients, arguing that it undermines the USDA’s mission and threatens rural communities’ economic viability.

Among the programs affected by this funding pause is the Partnership for Climate-Smart Commodities, through which the USDA has committed to investing $3.1 billion in 141 projects aimed at encouraging farmers to participate in conservation efforts. This initiative includes projects designed to assist Midwestern farmers in cultivating organic grains and enhancing potato farming operations in states like Idaho, Washington, and Oregon.

The financial resources for these contracts originate from the Commodity Credit Corporation, an institution established during the Great Depression to support agricultural financing. The current freeze on funding represents a critical juncture for many farmers who depend on these programs to sustain their operations and promote environmentally sustainable practices.