By Jamie Martin
Farmers and rural businesses are feeling the effects of the government's decision to halt key agricultural funding. The freeze affects federal conservation, energy, and international aid programs, leaving thousands of farmers in financial limbo says the Governors Biofuel Coalition.
Skylar Holden, a Missouri cattle rancher, had signed a $240,000 contract with the Agriculture Department to upgrade his farm’s infrastructure. With funding now on hold, Holden risks financial instability. “Whenever my farm payment comes due, there’s a good chance that I’m not going to be able to pay it,” he said.
The funding halt impacts over 25,000 conservation contracts worth $1.8 billion under the Inflation Reduction Act. These agreements, which provide cost-sharing for projects that protect soil and water, are now uncertain, leaving many farmers struggling.
“This isn’t just hippie-dippy stuff,” said Aaron Pape, a farmer from Wisconsin. “This is affecting mainstream farmers.” Pape, who expected $30,000 in funding for water management, now faces debt as he tries to cover costs himself.
Another major concern is the Commodity Credit Corporation, which provides financial relief to farmers affected by trade disruptions. The freeze has also delayed payments for crop insurance and disaster relief, increasing financial uncertainty in rural areas.
The decision to halt international food aid has further complicated matters. Over $489 million worth of food shipments remain stuck at ports, affecting farmers who supply grains for these programs. Wheat and rice farmers, who rely on these international markets, are left wondering how long the delays will continue.
Farmers using rural energy grants are also impacted. Adam Greene, a sheep farmer in Washington, secured grants to install solar panels but had to take a loan to cover upfront costs. Now, with the funding paused, his expansion plans are on hold.
Many farmers are now skeptical about working with federal agencies in the future. “These are commitments that the federal government has made to farmers that we’re depending on,” Greene said. “If you want to change policy, change policy, but just don’t go and blow stuff up.”
With uncertainty surrounding the funding freeze, farmers are left struggling to plan for the future, facing financial setbacks and operational disruptions in an already challenging agricultural landscape.
Photo Credit: usda
Categories: National