Slim margins, climate disasters, and Trump’s funding freeze: Life or death for many US farms todayheadline

When the Trump administration first announced a freeze on all federal funding in January, farmers across the country were thrust into an uncertain limbo. 

More than a month later, fourth-generation farmer Adam Chappell continues to wait on the U.S. Department of Agriculture to reimburse him for the $25,000 he paid out of pocket to implement conservation practices like cover cropping. Until he knows the fate of the federal programs that keep his small rice farm in Arkansas afloat, Chappell’s unable to prepare for his next crop. Things have gotten so bad, the 45-year-old is even considering leaving the only job he’s ever known. “I just don’t know who we can count on and if we can count on them as a whole to get it done,” said Chappell. “That’s what I’m scared of.” 

In Virginia, the funding freeze has forced a sustainable farming network that supports small farmers throughout the state to suspend operations. Brent Wills, a livestock producer and program manager at the Virginia Association for Biological Farming, said that nearly all of the organization’s funding comes from USDA programs that have been frozen or rescinded. The team of three is now scrambling to come up with a contingency plan while trying not to panic over whether the nearly $50,000 in grants they are owed will be reimbursed. 

“It’s pretty devastating,” said Wills. “The short-term effects of this are bad enough, but the long-term effects? We can’t even tally that up right now.” 

In North Carolina, a beekeeping operation hasn’t yet received the $14,500 in emergency funding from the USDA to rebuild after Hurricane Helene washed away 60 beehives. Ang Roell, who runs They Keep Bees, an apiary that also has operations in Florida and Massachusetts, said they have more than $45,000 in USDA grants that are frozen. The delay has put them behind in production, leading to an additional $15,000 in losses. They are also unsure of the future of an additional $100,000 in grants that they’ve applied for. “I have to rethink my entire business plan,” Roell said. “I feel shell-shocked.”

Within the USDA’s purview, the funding freeze has targeted two main categories of funding: grant applications that link agricultural work to diversity, equity, and inclusion initiatives and those enacted under the Inflation Reduction Act, which earmarked more than $19.5 billion to be paid out over several years. Added to the uncertainty of the funding freeze, among the tens of thousands of federal employees who have lost their jobs in recent weeks were officials who manage various USDA programs.

Following the initial freeze, courts have repeatedly ordered the administration to grant access to all funds, but agencies have taken a piecemeal approach, releasing funding in “tranches.” Even as the Environmental Protection Agency and the Department of Interior have released significant chunks of funding, the USDA has moved slowly, citing the need to review programs with IRA funding. In some cases, though, it has terminated contracts altogether, including those with ties to the agency’s largest-ever investment in climate-smart agriculture. 

In late February, the USDA announced that it was releasing $20 million to farmers who had already been awarded grants — the agency’s first tranche. 

According to Mike Lavender, policy director with the National Sustainable Agriculture Coalition, that $20 million amounts to “less than one percent” of money owed. His team estimates that three IRA-funded programs have legally promised roughly $2.3 billion through 30,715 conservation contracts for ranchers, farmers, and foresters. Those contracts have been through the Environmental Quality Incentives Program, Conservation Stewardship Program, and Agricultural Conservation Easement Program. “In some respects, it’s a positive sign that some of it’s been released,” said Lavender. “But I think, more broadly, it’s so insignificant. For the vast majority, [this] does absolutely nothing.”

A week later, USDA secretary Brooke Rollins announced that the agency would be able to meet a March 21 deadline imposed by Congress to distribute an additional $10 billion in emergency relief payments.

Then, on Sunday, March 2, Rollins made an announcement that offered hope for some farmers, but very little specifics. In a press statement, the USDA stated that the agency’s review of IRA funds had been completed and funds associated with EQIP, CSP, and ACEP would be released, but it did not clarify how much would be unfrozen. The statement also announced a commitment to distribute an additional $20 billion in disaster assistance. 

Lavender called Rollins’ statement a “borderline nothingburger” for its degree of “ambiguity.” It’s not clear, he continued, if Rollins is referring to the first tranche of funding or if the statement was announcing a second tranche — nor, if it’s the latter, how much is being released. “Uncertainty still seems to reign supreme. We need more clarity.” 

The USDA did not respond to Grist’s request for clarification. 

Farmers who identify as women, queer, or people of color are especially apprehensive about the status of their contracts. Roell, the beekeeper, said their applications for funding celebrated their operations’ diverse workforce development program. Now, Roell, who uses they/them pronouns, fears that their existing contracts and pending applications will be targeted for the same reason. (Federal agencies have been following an executive order taking aim at “Ending Radical And Wasteful Government DEI Programs.”) 

“This feels like an outright assault on sustainable agriculture, on small businesses, queer people, BIPOC, and women farmers,” said Roell. “Because at this point, all of our projects are getting flagged as DEI. We don’t know if we’re allowed to make corrections to those submissions or if they’re just going to get outright denied due to the language in the projects being for women or for queer folks.”

The knock-on effects of this funding gridlock on America’s already fractured agricultural economy has Rebecca Wolf, senior food policy analyst at Food & Water Watch, deeply concerned. With the strain of an agricultural recession looming over regions like the Midwest, and the number of U.S. farms already in steady decline, she sees the freeze and ongoing mass layoffs of federal employees as “ultimately leading down the road to further consolidation.” Given that the administration is “intentionally dismantling the programs that help underpin our small and medium-sized farmers,” Wolf said this could lead to “the loss of those farms, and then the loss of land ownership.”  

Other consequences might be more subtle, but no less significant. According to Omanjana Goswami, a soil scientist with the advocacy nonprofit Union of Concerned Scientists, the funding freeze, layoffs, and the Trump administration’s hostility toward climate action is altogether likely to position America’s agricultural sector to contribute even more than it does to carbon emissions. 

Agriculture accounted for about 10.6 percent of U.S. carbon emissions in 2021. When farmers implement conservation practices on their farms, it can lead to improved air and water quality and increase soil’s ability to store carbon. Such tactics can not only reduce agricultural emissions, but are incentivized by many of the programs now under review. “When we look at the scale of this, it’s massive,” said Goswami. “If this funding is scaled back, or even completely removed, it means that the impact and contribution of agriculture on climate change is going to increase.”

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The Trump administration’s attack on farmers comes at a time when the agriculture industry faces multiple existential crises. For one, times are tight for farmers. In 2023, the median household income from farming was negative $900. That means, at least half of all households that drew income from farming didn’t turn a profit. 

Additionally, in 2023, natural disasters caused nearly $22 billion in agricultural losses. Rising temperatures are slowing plant growth, frequent floods and droughts are decimating harvests, and wildfires are burning through fields. With insurance paying for only a subset of these losses, farmers are increasingly paying out of pocket. Last year, extreme weather impacts, rising labor and production costs, imbalances in global supply and demand, and increased price volatility all resulted in what some economists designated the industry’s worst financial year in almost two decades. 

Elliott Smith, whose Washington state-based business Kitchen Sync Strategies helps small farmers supply institutions like schools with fresh food, says this situation has totally changed how he looks at the federal government. As the freeze hampers key grants for the farmers and food businesses he works with across at least 10 different states, halting emerging contracts and stalling a slate of ongoing projects, Smith said the experience has made him now consider federal funding “unstable.” 

All told, the freeze isn’t just threatening the future of Smith’s business, but also the future of farmers and the local food systems they work within nationwide. “The entire food ecosystem is stuck in place. The USDA feels like a troll that saw the sun. They are frozen. They can’t move,” he said. “The rest of us are in the fields and trenches, and we’re looking back at the government and saying, ‘Where the hell are you?’”