Trump’s USDA Fund Freeze Costs Farmers Millions
TL/DR –
Farmers in the US are claiming that they are missing millions of dollars in funding that was promised to them by the U.S. Department of Agriculture, despite the Trump administration’s assurance that a funding freeze would not impact projects directly benefiting individuals. President Trump ordered the USDA to freeze funds for several programs, including the Environmental Quality Incentives Program and the Rural Energy for America Program, causing farmers who had signed contracts and paid upfront for projects to be left without their expected financial aid. The USDA has also halted funding for other programs, such as scientific research grants in agriculture and producing climate-smart crops, and grants worth $32 billion authorized under the 2022 Inflation Reduction Act remain susceptible to being frozen.
Federal Funding Freeze Leaves Farmers in Financial Limbo
Farmers across the United States report that millions of dollars in promised funding from the U.S. Department of Agriculture (USDA) remain on hold. Despite assurances from the Trump administration, a federal funding freeze has disrupted projects directly benefiting farmers.
On his first day in office, President Donald Trump ordered the USDA to halt funds for several programs underlined in President Joe Biden’s signature clean-energy and health care law, the 2022 Inflation Reduction Act. This pause affected funding for programs such as the Environmental Quality Incentives Program and the Rural Energy for America Program which facilitate farmers in natural resource concerns and infrastructure upgrades, respectively.
Many farmers had entered contracts with the USDA under these programs, fronting costs for renewable energy systems, new crops, and fencing, under the assurance of federal grants and loan guarantees covering part of their expenses. With this funding now suspended, farmers face financial uncertainty.
Maryland flower farmer Laura Beth Resnick reported that her $36,450 reimbursement for a solar panel installation was denied due to the executive order. She, like many farmers, is in a predicament, unsure of how to proceed without the expected funding.
The USDA’s funding freeze has also impacted other agricultural programs, including scientific research grants and initiatives to develop climate-smart crops. A letter from House Democrats on the Agriculture and Appropriations committees asserts that such actions could severely hinder economic development in rural America.
Despite the pause being rescinded following a federal judge’s intervention, farmers report their funding remains frozen. This compounds the financial pressures they face due to potential tariffs and freezes to foreign-aid spending on American food products.
The funding disruption threatens Biden’s Inflation Reduction Act, with $32 billion worth of grants potentially at risk of being frozen. The USDA had made $3.1 billion available in the 2024 fiscal year for climate-smart agriculture activities under this act.
Rob Larew, National Farmers Union President, testified before the Senate Agriculture Committee, voicing concern over the funding uncertainty faced by farmers nationwide. Similarly, cattle farmer Skylar Holden from Missouri, who signed a contract under the Environmental Quality Incentives Program, finds himself in a financial bind due to the funding freeze.
The funding freeze has not only brought individual projects to a standstill but has also halted large-scale initiatives. The suspension of USDA payments impacted a five-year Midwest Climate Smart Commodity grant secured by the Iowa Soybean Association in 2022. Worth $95 million, the grant benefits over 1,000 farms in 12 Midwestern states and encourages conservation-oriented farming practices.
Resnick, along with hundreds of other farmers, is left uncertain about the future. The financial stress and lack of trust in governmental promises have led her to question the future of farming.
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