Concerns Mount for Farmers as USDA Funding Package Faces Cuts

Concerns Mount for Farmers as USDA Funding Package Faces Cuts

The Biden administration’s recent $19.5 billion funding package, intended to enhance evidence-based conservation practices, will not honor most of its allocated funds. This decision has raised alarm bells among farmers and agricultural advocates. To that effect, they say the cuts put vital conservation programs—which help agricultural producers improve soil health and air quality while reducing the need for expensive fertilizers and pesticides—at risk. To put it mildly, the Institute for Agriculture and Trade Policy (IATP) is alarmed. They warn that producers who are already struggling to survive in a challenging, volatile market may see even harsher impacts.

This funding package was intended to further solidify the connection between sustainable agricultural practices with rewards for producers and positive impacts for consumers. Elimination of important programs — the Local Food Purchase Assistance (LFPA) program, for one — and the termination of the Local Food for Schools Cooperative Agreement Program have left the agricultural community reeling. As a consequence, many of them feel alone and underserved. The LFPA program did a wonderful job of facilitating those connections between producers and food banks. Simultaneously, the Local Food for Schools program allowed public schools to feature healthy, locally-grown fruits and vegetables on their lunch menus.

USDA stands ready to assist producers as they recover from recent disasters. Their diverse programs are intentionally tailored to uplift all who have felt the effects of these disappointments. In fact, it is currently developing a framework to allocate over $20 billion in congressionally appropriated funds to those who have experienced losses during the 2023/2024 crop year.

“The USDA has a variety of programs available to producers who have been impacted by recent disasters … is currently building a framework to deliver over $20bn in congressionally appropriated funds to producers who suffered losses during the 2023/2024 crop year.”

We know that the USDA cares deeply about food security. It runs 16 other robust nutrition programs that help support agricultural markets while ensuring millions of Americans have equitable access to nutritious food. Critics say that a simultaneously instituted freeze on at least 15 agricultural department programs is sabotaging these efforts. This freeze jeopardizes billions of dollars that help American farmers and rural communities prosper.

The USDA’s Natural Resources Conservation Service (NRCS) is deeply committed to rural, local, equitable development. It deeply engages in delivering customized, hands-on, technical assistance to farmers. The Farm Service Agency (FSA) and NRCS offer guidance on pest control, planting practices, conservation programs, loans, and disaster assistance programs. Over 10% of USDA employees have taken voluntary buyouts. Experts have repeatedly warned that if this continues unchecked, it won’t be long before we feel the impacts on basic services.

“The US reputation has taken a huge hit. We can no longer be considered a reliable trading partner which is terrible for farmers,” – Ben Lilliston, director of rural strategies and climate change at the Institute for Agriculture and Trade Policy (IAPT)

The demise of the Biden administration’s PCSC program – Partnerships for Climate-Smart Commodities – has been roundly condemned. This five-year initiative, funded at $3.2 billion, focused on developing the most effective and efficient conservation practices. During a recent event at the Arkansas State Capitol, farmers such as Adam Chappell lamented their long-term ability to maintain their businesses under continued economic duress.

“We were already in a precarious situation but now, unless there’s a bailout or this trade war is resolved by harvest time, it will be disastrous and a critical mass of farmers could go out of business,” – Adam Chappell, 46, a commodities farmer

Chappell’s sentiments echo a larger fear that’s begun to grip the agricultural community. Sadly, too many farmers are still battling unprecedented weather extremes and newly volatile markets. Travis Johnson, another farmer facing mounting pressures, stated:

“There’s a lot of uncertainty around and I hate to be used as a bargaining chip. I am definitely worried.”

Given recent debates over tariffs and our overall trade relations, the uncertainty of these policies due to their volatility makes things even more complicated. Even Sid Miller, Texas’ tea party agriculture commissioner, accepted the sacrifices farmers will be required to make for an uncertain long-term benefit. He insists that tariffs are not a long term solution.

“Tariffs are a temporary tool, they won’t be permanent; China needs our grains, they are prideful but will come around like last time,” – Sid Miller

We’ve heard from farmers who are bracing for a growing season that could get really treacherous really quickly. Many are focused on demanding action before we lose millions irrevocably. As our friend Ben Lilliston from IATP puts it, without a rapid and robust response the impacts to the agricultural sector will be catastrophic.

“Another bailout seems inevitable but there are serious questions about how quickly it could be implemented with such a dysfunctional Congress, local USDA offices shuttered and fewer staff. It’s a very messy situation and farmers are already experiencing harm,” – Ben Lilliston

The one-two punch of dangerous funding cuts and long-term tariff fights cast deep doubts on the future of American agriculture. Agricultural producers such as Travis Johnson share the pain of two years of falling prices and crazy weather fighting for control over this vital land asset.

“We’ve already had two years of absolute disaster with falling prices and weather patterns … no farmer wants this but without a bailout this could be devastating and a lot more people could go under,” – Travis Johnson

The agricultural community is at a tipping point, facing pressing economic concerns as well as questions about the future of agricultural sustainability. Discussions around proposed funding cuts and new trade policies continue as well. American farmers—especially these days, during such turbulent economic times—need quick, meaningful reforms and everyone is anxious to see them start and operating.

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