The US Department of Agriculture (USDA) has temporarily frozen funding for certain farmer assistance programs as it undergoes a comprehensive review, despite earlier assurances from the Trump administration that agricultural programs would remain unaffected by government restructuring efforts.
The freeze has had an immediate and widespread impact, affecting initiatives such as financial aid for ranchers repairing cattle watering systems and support for corn growers implementing cover crops to prevent wind erosion. Some of the frozen funds are tied to environmental conservation programs funded by the 2022 Inflation Reduction Act, President Joe Biden’s landmark climate law, which allocated approximately $19.5 billion for farm programs over a decade.
Although the White House initially proposed a freeze on federal loans and grants on January 27, it clarified that farmer assistance programs would not be impacted. The proposal was later rescinded and temporarily blocked by a court. The White House did not comment on the situation when approached on Friday.
This funding pause adds to the economic uncertainty faced by farmers, who have already endured several years of declining incomes due to low crop prices. The move has also surprised the farming community, which has strongly supported former President Trump in the past three elections. During Trump’s first term, farmers received record payments totaling around $217 billion, including crop support, disaster relief, and other aid programs.
Rob Larew, president of the National Farmers Union, testified before the Senate Agriculture Committee on Wednesday, highlighting concerns from farmers nationwide who are experiencing delays in expected payments from USDA conservation programs. “The uncertainty surrounding USDA’s actions is exacerbating the economic pressures felt in rural areas,” he stated.
Missouri cattle producer Skylar Holden shared his experience on TikTok, revealing that he had signed a $240,000 contract with USDA’s Natural Resources Conservation Service (NRCS) to improve water lines, fences, and a well. However, USDA officials recently informed him that his contract under the Environmental Quality Incentives Program (EQIP) was frozen, leaving him unsure when the funds would be released. Holden expressed frustration, stating that he had already invested in materials and labor and now faces the risk of losing his farm if the contract is not honored.
The EQIP program is designed to help farmers enhance productivity while conserving natural resources. A USDA spokesperson explained that all federal agencies have been instructed to conduct program reviews and that the department would provide updates once Brooke Rollins, Trump’s nominee to lead the agency, is confirmed by the Senate. Rollins was advanced by the Senate Agriculture Committee this week but has yet to receive a full Senate vote.
According to a document reviewed by Reuters, the US Office of Management and Budget (OMB) has requested detailed information from USDA on 409 programs, including the names of political appointees overseeing them and their funding obligations through March 15.
The funding freeze extends beyond programs supported by Biden’s climate law, as noted in a letter sent to USDA by three Democratic lawmakers on Thursday. They warned that halting these programs would undermine USDA’s mission and severely harm economic development in rural America.
One affected initiative is the Partnership for Climate-Smart Commodities, which aims to invest $3.1 billion in 141 projects to help farmers participate in conservation programs. These projects include supporting Midwestern farmers in growing organic grains and improving potato farm operations in Idaho, Washington, and Oregon. Funding for these contracts comes from the Commodity Credit Corporation, a financial institution established during the Great Depression.
The freeze has raised concerns about the future of critical agricultural and conservation programs, leaving farmers in limbo as they await clarity on when funding will resume.
