USDA Freezes Conservation, Other Direct Farmer Funding

By Ryan Hanrahan

Reuters’ P.J. Huffstutter and Leah Douglas reported Saturday that “the U.S. Department of Agriculture 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,” Huffstutter and Douglas reported. “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 The administration rescinded its proposal and it has been temporarily blocked in court.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,” Huffstutter and Douglas reported. “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.”

Ag Groups & Farmers Expressing Concern

Bloomberg’s Michael Hirtzer reported Friday that “the American Soybean Association said it had been notified by growers that payments associated with the Partnerships for Climate-Smart Commodities Program have been suspended, according to a statement on Friday. The pause comes as the administration reviews various grants.”

“President Joe Biden’s plan was expected to invest $3.1 billion in in 141 selected projects to reduce greenhouse gas emissions on the farm. Growers of crops such as corn and soybeans would receive grants for implementing practices that would reduce emissions such as no tilling and cover crops,” Hirtzer reported. “‘Under the grants, farmers have implemented practices to make their operations more resilient and improve environmental outcomes,’ said ASA President Caleb Ragland. ‘These projects are integral to the continued success of the agriculture industry by advancing efficiencies.'”

“The ASA stressed that the US Department of Agriculture should honor the contractual agreement it made with farmers,” Hirtzer reported.

Reuters’ Huffstutter and Douglas reported that “Rob Larew, president of the National Farmers Union, told the Senate Agriculture Committee (this past) 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.”

Progressive Farmer’s Chris Clayton reported that “at least one Missouri producer posted videos on TikTok worried he could lose his farm because USDA ‘reneged’ on his cost-share contract with NRCS under the Environmental Quality Incentives Program (EQIP).”

“Over the past two days Skylar Holden, a 27-year-old, first-generation cattle producer in eastern Missouri, has posted multiple videos detailing how he signed a contract with NRCS,” Clayton reported. “He signed a contract with NRCS for $240,000 and now has $80,000 in material purchased and signed contracts to install water lines. Holden said he was told the contract was frozen and nobody knows when the money could be released.”

“In an interview with DTN, Holden expressed frustration because he was initially cautious about signing up for a government program,” Clayton reported. “Once he got started, however, Holden said he was excited about the prospects and what the EQIP improvements could do on his land. He touted NRCS programs on his TikTok account @cattlemenfamilyfarms.”

“He added, ‘I don’t understand how you can sign a contract and just renege on that contract. If something doesn’t change, we are going to lose this farm and I am extremely stressed about it,'” Clayton reported.

Ag Committee Democrats Seeking Answers

Clayton reported that “every Democrat on the Senate Agriculture Committee joined Ranking Member Amy Klobuchar, D-Minn., to send a letter to USDA Acting Secretary Gary Washington. The senators are requesting information on actions the department has taken to pause payments or terminate obligations ‘as well as the legal basis for pausing or terminating any funding that has been appropriated by Congress.‘”

“The senators stated, ‘Over the past week, farmers, ranchers, schools, and state governments have contacted our offices in search of clarity on programs, websites, offices, and activities impacted by these orders. Conflicting information from the administration has added to the uncertainty, costing those who depend on the Department time and money. The farmers, rural families, and businesses that depend on the Department need certainty to plan ahead for this growing season,'” according to Clayton’s reporting.