Trump’s USAID and IRA funding freezes are expected to cost American farmers billions of dollars

Just weeks on the job, Trump is already costing American farmers their livelihoods. Trump’s freeze of President Biden’s Inflation Reduction Act programs is “creating chaos” and causing significant “financial distress” to farmers. Seventy-eight percent of the $346 billion worth of economic benefits from the IRA has gone to primarily rural congressional districts, creating 43,570 jobs in rural communities across 31 states. Now, Trump’s freeze on these projects has led to delays, terminations, and economic uncertainty in rural communities – including for projects already underway.

On top of that, Trump’s ending of the USAID “Food Aid for Peace” program is costing American farmers hundreds of millions of dollars in income and will soon hit billions of dollars in lost income. Already, $500 million worth of food is at-risk for spoilage because of Trump’s reckless freeze and farmers across the country, from Wisconsin to Texas to Missouri, are worried about their production and livelihoods. 

In response to the Trump administration’s moves that hurt American farmers, DNC Chair Ken Martin released the following statement: 

“My father-in-law is a farmer in southern Minnesota, where he grows corn, and soybeans, and produces cattle. I think a lot of farmers like him would say even a handshake counts as an agreement – and that your word is your bond – so imagine what they’re feeling now. Rural voters didn’t send Trump to the White House to back out of their contractual agreements with farmers – costing them thousands of dollars and threatening their lands and livelihoods – but that’s exactly what Trump did the first chance he got. Rural Americans continue to suffer the most while Trump and Musk strip our government for parts.”

Here’s a look at how Trump’s disastrous Project 2025 USAID food production and IRA project funding freezes will devastate farmers and rural Americans: 

Washington Post: Farmers on the hook for millions after Trump freezes USDA funds

“The White House repeatedly said the freeze of agriculture funding and other federal financial assistance would not affect benefits that go directly to individuals, such as farmers. The administration rescinded the pause after a federal judge temporarily halted its implementation.

“But over the weekend, farmers reported that their funding remained frozen — another blow to farmers who are also facing threats of tariffs and freezes to foreign-aid spending that involved food purchased from American producers.”

Farm Progress: Farmers demand answers on funding freeze

“Standing out amongst the suits and ties at Tuesday’s House Agriculture Committee meeting were approximately a dozen farmers dressed in decidedly less formal attire. 

“The farmers, who all live within driving distance of Washington, D.C. were there to highlight how President Trump’s sudden funding freeze has left them dire straits.

“Shortly after President Trump returned to the White House, he announced a freeze on government funding. Despite previously promising the freeze would not affect funding for individuals, farmers across the country report losing out on money they had been promised in writing to pay for numerous projects.”

Houston Chronicle: 30,000 tons of food stuck in Houston port after Trump halts foreign aid

“The halt of the aid program presents a likely loss of revenue for farmers in Texas and other rural states who relied on USAID to buy crops including rice, wheat and sorghum.

“The food stuck in Houston totaled more than 31,000 tons and was part of more than 500,000 tons of food valued at $450 million now at risk of going to waste, according to the email from the international agency, which was reviewed by Hearst Newspapers. USAID food shipments are also being held up at seven other U.S. ports, including Boston, New York and Miami.”

Missouri Independent: Missouri soybean research project shuts down as Trump cuts off funding

“A major soybean research project, which collaborates with the University of Missouri, will shut down April 15 due to President Donald Trump’s dismantling of funding to the U.S. Agency for International Development.

“The land grant system will lose 19 innovation labs across 17 states, including Missouri.

“As part of the project, Missouri has been doing research on African soybean diseases that would help Missouri farmers combat a disease that can decimate soybean crops. The research found diseases in African soybean crops that could be prevented in Missouri and abroad, Clark said.

“‘(The cease in funding and the end of the project) puts us many years behind now in trying to combat soybean rust, which is a disease that can take out soybean crops entirely,’ Clark said.”

Reuters: USDA freezes farmer funding for some programs, conservation contracts

“The U.S. Department of Agriculture has frozen some funding for farmers as it goes through a sweeping review, despite assurances from the Trump administration that programs helping farmers would not be affected in the government overhaul.

“The freeze adds more economic uncertainty for farmers already struggling after several consecutive years of incomes dragged down by low crop prices.

“It also comes as a surprise to a community that voted overwhelmingly for Trump in the past three presidential elections.

“Rob Larew, president of the National Farmers Union, told the Senate Agriculture Committee on Wednesday that the group was hearing from farmers across the country who were not receiving expected payments from USDA conservation programs.

“‘Having USDA delayed with a lot of uncertainty about whether or not it will actually come through is adding to that economic pressure in the countryside,’ he said.”

Civil Eats: Trump’s Funding Freeze Creates Chaos and Financial Distress for Farmers

“On inauguration day, President Trump signed a series of executive orders that included directives to roll back Biden-era climate policies and projects. A subsequent broad pause in funding was stopped by a judge and later rescinded, and a judge ruled yesterday that the administration had failed to comply with the court order.

“Farmers who received Renewable Energy Assistance Program (REAP) grants to install solar arrays on their land are left in limbo; so are those with conservation grants through popular programs including the Environmental Quality Incentives Program, which got an infusion of cash through the IRA.

“It’s typical for new administrations to throw out the policies of the old; it’s not typical to stop funding for contracts that have already been legally executed.”