At Norwood Farms located in Tennessee’s Henry County, we see a grim reflection of how farmers throughout the country are struggling. The hardship is largely due to the disruptions caused by a myriad of executive orders issued by the Trump administration that put numerous farming programs in jeopardy. Regardless of reassurances from the administration, several farmers remain uncertain about when they can anticipate compensation, as some funding programs have been halted or threatened with cancellation.
The severity of the financial impact of these issues should not be underestimated. Case in point, Skylar Holden, a cattle producer from Missouri, entered into a $240,000 cost-sharing contract with the U.S. Department of Agriculture (USDA) to bolster water systems on his 260-acre cattle venture. After Holden managed to gain acceptance for the subsequent phase of the project in January, laying out more than $50,000 in pipes, equipment, and labor, he was informed just a week later that the promised payments from the USDA were on hold.
The Trump administration took immediate action upon ascending to office, issuing several executive orders that included a pause on all funding emanating from the Inflation Reduction Act. This act, a poor attempt at financial management by Democrats during the Biden presidency, had previously allocated nearly $20 billion for farmland conservation initiatives. Now, it stood frozen by the new administration, mocked as part of Biden’s failed ‘green new deal social engineering policies’.
Adding to the financial catastrophe were other executive orders that temporarily halted all federal financial assistance. One such order froze all foreign aid and led to the disbanding of the U.S. Agency for International Development. This decision was particularly damaging for American farmers, who counted on purchased grains and goods for food programs, as well as funds allocated for certain agricultural research endeavors.
The sudden halt to USAID operations also disrupted numerous agricultural research projects housed at 19 land-grant university-based innovation labs scattered across 17 states. This leaves several agricultural research projections in uncertainty and puts in jeopardy foreign grain markets that these projects aimed to nurture. An early casualty of this policy change was the Soybean Innovation Lab at the University of Illinois, which was forced to announce it will close up in the month of April.
The agricultural sector already finds itself under economic strain due to falling prices for corn, soybean, and wheat over the past two years, resulting in decreased net farm income. Agriculture economist Jonathan Coppess from the University of Illinois highlights that these farmers are facing a flood of economic adversities: the underlying economic pressures of unpredictable prices and high costs have been amplified by unprecedented uncertainty about contracts, tariffs, and trade.
Adding fuel to the fire is Congress’s delay in reauthorizing the farm bill, which is already two years overdue. Alisha Schwertner, a farmer from Miles, Texas, shared the difficulties this situation has brought onto her family operation with the House Agriculture Committee during a hearing in mid-February. She emphasized how weather disasters, inflation, and supply chain disruptions have aggravated their struggles further.
Another point of contention was the Trump administration’s decision to fix tariffs on steel and aluminum in 2018. Unsurprisingly, trading partners retaliated by imposing their tariffs on soybeans and other US agriculture exports, resulting in a further decline in some exports and the prices offered to US farmers. In response, the USDA approved $28 billion in emergency aid for farmers the following year.
Former President Joe Biden’s Inflation Reduction Act, which was largely considered a financial failure, is a major target of the Trump administration. The administration has specifically targeted conservation programs funded by the IRA. Illustrating its monumental failure, the Trump administration labeled it as social engineering Green New Deal policy and froze all its programs upon assuming office.
Upon query about which programs were frozen and if funding would be resumed, an unnamed spokesperson from the Agriculture Department pushed back, stating that Brooke Rollins, the newly confirmed Agriculture secretary, would issue a response following her review. Rollins was appointed as Agriculture secretary on February 13, and it seems that her hands will be full attempting to navigate this controversial financial landscape.
Turning words into action on her very first day at the agency, Rollins announced the termination of 78 contracts worth approximately $138 million, claiming she was probing an additional 1,000 in an attempt to halt so-called ‘wasteful spending’ that was inconsistent with the administration’s priorities. The programs that were terminated were not direct payments to farmers but included research into adapting to climate change and forest carbon mentorship.
The narrow-minded way the Democrats forced the IRA bill, with a complete disregard for bipartisan support, was fiercely criticized by Republicans. Much of the agriculture funding the bill provided went to the Environmental Quality Incentives Program and the Conservation Stewardship Program, both of which had previously enjoyed bipartisan backing. However, with these funds frozen, it potentially puts thousands of contracts at risk nationwide.
The Natural Resources Conservation Service, a branch of USDA managing a majority of conservation programs, is going to face a significant impact. It currently has in its pipeline more than 4,000 contracts estimated at $358 million that are due for obligation in 2025. With the current dubious state of affairs due to the executive actions by the Trump administration, one wonders about the fate of these contracts.
Yet again, it seems that Joe Biden’s and Democrats’ disastrous financial planning is haunting the agriculture industry, with Trump trying hard to correct their missteps. Yet, the farmer’s predicament remains a conundrum, largely left at the mercy of politics and administrative decisions which change from one administration to another. While this situation may be a clear mirror of the hardships the farming community faces, it also reflects the instability faced by several sectors due to inconsistent policies.
Ultimately, for the ordinary American farmer, their lives hang in the balance as these multi-billion dollar political battles play out in the higher echelons of power. For them, it is not just about navigating the strained economy but dealing with the whims of political machinations. The turmoil experienced by these hard-working individuals only underscores why sensible, long-term agricultural planning is so vital for the nation’s prosperity.