Since January, farmers and ranchers have been left in limbo as certain grant and cooperative agreement programs have come under fire, their intentions mischaracterized in unprecedented ways. Enacted through the “Unleashing American Energy” Executive Order, the funding freeze is a direct violation of the government’s contractual commitments to agricultural producers, and the organizations that serve them, across the country. Tens of thousands of farmers, ranchers, fishing people, and foresters across the country have been forced to struggle through the beginning of farm season, anxiously waiting for money legally owed to them. This politically motivated action damages farmers’ confidence in government and punishes them for unfounded wrongdoing, all while they work to support their families and communities.

USDA cooperative agreements fund partnerships between the department and non-federal entities (such as nonprofits, universities, state governments, etc) that benefit the public. Cooperative agreements differ from grants in that they specify that federal agencies have substantial staff involvement in the project , and differ from federal contracts which are used to procure goods/services. Cooperative agreements have a lengthy history within the US government, but the USDA was formally authorized to utilize them in the 1985 Farm Bill (The Food Security Act of 1985). 

The majority of frozen funds come from cooperative agreement programs funded by the Inflation Reduction Act (IRA), and the bipartisan Infrastructure Investment and Jobs Act (IIJA), both signed into law in 2022. Although the USDA is contractually obligated to fulfill these programs, the department has, to date, disbursed a mere fraction of the funds owed to organizations and food producers  By March, only $20 million, or 0.8%, of the more than $20 billion funded through the IRA was actually disbursed. Compounding the problem, unprecedented layoffs at federal agencies — including an estimated 20,000 workers at USDA — threaten the government’s ability to fulfill even the agreements that remain in force. 

The IIJA and IRA funded important programs needed to prepare for natural disasters, help farmers gain access to farmland and market opportunities, and protect important resources like clean water and healthy soils. Whether directly or indirectly, these programs benefit us all – they are not fringe initiatives of any political agenda. Farmers across the political spectrum and from all backgrounds support and rely on these programs meant to sustain their long-term economic and ecological success, especially those who are financially vulnerable and historically marginalized.

In addition to threatening the well being of individual farms, the funding freeze is a major betrayal to the farm advocacy organizations that applied for these programs. They invested significant time and resources to submit proposals, based on priorities established by Congress and terms defined by the USDA, designed to directly benefit the farmers they serve. The freeze pulls the rug abruptly and unjustifiably from beneath these groups and the farmers they support. Anticipating reimbursement as their agreements stated, they have already incurred expenses and completed their work for these projects, only to find themselves without compensation. Many are now saddled with debt they cannot repay.  

According to information provided by the Senate Agriculture Committee Ranking Member Amy Klobuchar’s office, fifteen specific programs are at risk. One crucial program in jeopardy is the Increasing Land, Capital, and Market Access (ILCMA) Program, established through the IRA to fund creative projects that address the farmland crisis challenging farmers nationwide, especially aspiring farmers looking to enter the field. The ILCMA Program includes $300 million in funding for fifty innovative projects across the US — including those by NFFC members. 

The Increasing Land, Capital, and Market Access (ILCMA) Program is a welcome step towards addressing the nationwide farmland crisis. The National Young Farmers Coalition reports that accessing affordable farmland is the top challenge for young and beginning farmers. In 2024, the average value of farmland per acre was $4,170 and continues to climb well past historic records. 

In April, NFFC and many of our members joined more than 160 food and farm groups across the country in a letter urging Secretary Rollins to immediately restore the ILCMA program. NFFC has heard from some of our members participating in ILCMA that some reimbursements are beginning to be processed from 2024 – a step forward that we applaud and that gives us hope that more reimbursements are coming soon.

Over the past few months, multiple lawsuits have been filed to restore all contracted funding. These cases remain in litigation, with few updates. On April 15, US District Judge Mary McElroy ruled that the funding freeze was “arbitrary and capricious,” and issued a nationwide injunction ordering the administration to release the funds while the lawsuit proceeds. This was followed with another preliminary injunction ordered in a separate case on May 20 by US District Judge Richard Gergel, restoring the processing of 32 federal grants. However, on June 5 this injunction was stayed pending appeal by the administration. The back-and-forth orders to thaw and re-freeze funding exacerbates persistent uncertainty. Agreement holders continue to be kept in the dark by the USDA, receiving few to no updates on when they can expect reimbursement for costs already paid.  

An additional concern is that, even if funding is released, recipients may be required to revise their plans in order to align with the new administration’s goals – this happened most recently with the USDA’s REAP program. The stipulation has troubling implications that recipients will be forced to alter already-approved projects in order to comply – or risk losing their funding in retaliation. 

Independent farmers already contend with razor-thin profit margins, and the funding freeze continues to add unnecessary stress on the already strained US food system. Farmers are not asking for special treatment—they are asking the government to honor its legal commitments. Our coalition calls on the administration to make farmers whole by holding up their end of the deal and swiftly releasing all remaining funds.  Every organization and farmer who signed a contract must receive the support they are owed.