The US Department of Agriculture released $20 million in payments to farmers for grants through the Inflation Reduction Act, but it’s only “a drop in the bucket” when it comes to contracts that have been approved, according to one agriculture coalition.
A freeze on federal funding was initiated shortly after President Donald Trump’s barrage of executive orders after his inauguration in January.
Farmers were in shock wondering if they would be reimbursed for work on their farms.
Augusta County farmer Howard Wilson was told in early February that a USDA Natural Resource Conservation Service payment he was expecting for a watering system was paused. He had been told Jan. 29 that the funds would be in his account in seven to 10 days.
The good news for Wilson is that his payment may have been late, but it did come. The NRCS deposit was in his bank account on March 1, he told AFP.
US Secretary of Agriculture Brooke Rollins announced on Feb. 21 that funding from the environmental quality incentives program, the conservation stewardship program and the agricultural conservation easement program would be released.
The American Farm Bureau Federation was quick to issue a statement thanking Rollins for honoring the conservation contracts.
“The freezing of funds created uncertainty for farm families who had already invested in improvements to their land after receiving a financial commitment from the federal government,” said AFBF President Zippy Duvall, after meeting with Rollins and sharing concerns over the issue.
“We’re thankful the administration recognized the importance of making good on the first tranche of agreements,” he said. “We look forward to future announcements about fulfilling previously signed contracts.”
NSAC: Less than 1% of IRA funding released for farmers
The National Sustainable Agriculture Coalition said the funds released represent less than 1% of IRA funding originally promised to farmers through reimbursement and cost-share models. Some programs required five-year contracts so many farmers have likely already spent money to meet their contract obligations.
“As farmers make decisions for next season’s planting and rural businesses operate in a challenging economic climate, this announcement fails to address the sheer scale of the promises broken. The nation’s farmers, and rural America as a whole, deserve the certainty that the USDA will honor its commitments and immediately release funds on all signed contracts,” said the statement from NSAC.
“Through lawfully signed contracts, the USDA has promised critical funding to farmers, ranchers, and rural businesses in every state – funds that stand to strengthen conservation efforts and advance rural energy independence. By reneging on these promises, the USDA is not only cutting off vital resources but also breaking commitments to farmers and rural communities that have acted in good faith and moved forward spending their hard-earned money to honor their contractual obligations.
“The $20 million released on February 21 is only a drop in the bucket compared to the full extent of the financial support promised to America’s farmers.”
The NSAC supports small and mid-size family farms and advocates for federal policy reform to advance the sustainability of agriculture, food systems, natural resources and rural communities.
“USDA must honor all existing contracts and agreements now and communicate its commitment to do so to farmers with a unified voice at all levels of government. To do anything else is to tarnish the full faith and credit of the department and force unneeded fear and hardship on rural America writ large.”
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For related stories, search “farmer” or “agriculture” on AFP.
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Crystal Graham
