By P.J. Huffstutter and Leah Douglas

CHICAGO/WASHINGTON DC (Reuters)

The U.S. Department of Agriculture has frozen some funding for farmers as it conducts a sweeping review, despite assurances from the Trump administration that programs helping farmers would remain unaffected in the government overhaul.

Immediate Impact

The impact has been immediate and wide-ranging, affecting cash assistance for ranchers and support for corn growers aiming to plant cover crops to combat wind erosion.

Some frozen funds are linked to environmental conservation programs funded by former President Joe Biden’s climate law, the 2022 Inflation Reduction Act, which allocated around $19.5 billion for farm initiatives over ten years.

White House Position

The White House stated its January 27 proposal to freeze federal loans and grants would not impact farmers. However, this proposal was rescinded and temporarily blocked in court. The White House has not responded to requests for comments.

This freeze adds to economic uncertainty for farmers who have already faced several years of low crop prices squeezing incomes.

Farmers’ Reactions

This unexpected funding freeze surprises a community that strongly supported Trump in the last three presidential elections. During his first term, farmers received record cash, totaling about $217 billion in various payments, including crop support and disaster aid.

Rob Larew, president of the National Farmers Union, informed the Senate Agriculture Committee that farmers nationwide are failing to receive 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 stated.

Individual Cases

Missouri cattle producer Skylar Holden shared on TikTok that he signed a contract with USDA’s Natural Resources Conservation Service for $240,000 for upgrades to water lines and fences. However, USDA informed him that his contract was frozen, leaving him uncertain about fund release. He expressed concerns over potentially losing his farm due to the financial strain.

The program aims to assist farmers in maintaining or improving production while conserving natural resources.

Administrative Review

A USDA spokesperson mentioned that all federal agencies are undergoing such program reviews. The Department of Agriculture will provide feedback once Brooke Rollins, Trump’s appointee to lead the agency, is confirmed. Rollins has advanced past the Senate Agriculture Committee but awaits a full Senate vote.

The U.S. Office of Management and Budget requested information on 409 programs from USDA, as per an OMB document reviewed by Reuters. This includes details about political appointees overseeing each program and their funding commitments through March 15.

Funding Pause Impact

The funding pause affects programs beyond those associated with Biden’s climate law, as shared in a letter sent to USDA by three Democratic lawmakers. “Pulling the rug out from these recipients runs counter to the mission of the USDA and will quickly and significantly cripple economic development in rural America,” the letter stated.

One impacted initiative was the Partnership for Climate-Smart Commodities, where USDA is investing $3.1 billion across 141 projects aimed at encouraging farmers to enroll in conservation programs. Projects include assistance for Midwestern farmers growing organic grains and support for potato farms in Idaho, Washington, and Oregon.

Funding for these contracts comes from the Commodity Credit Corporation, established during the Great Depression.