USDA cuts and freezes 'ripple' through rural communities, leaving farmers and states scrambling to manage losses

USDA cuts 'are being keenly felt' in Appalachia.
(Adobe Stock photo)

U.S. Department of Agriculture funding cuts and freezes have left farmers and states struggling with supply issues, financial losses and budget shortages. "Along the winding back roads and Appalachian hollers of West Virginia, in a state where Trump won 70% of the votes cast, his administration's vow to cut back on government spending is being keenly felt," reports P.J. Huffstutter of Reuters. Some states may be forced to shutter programs because there isn't enough money to cover gaping budget shortfalls.

In one of its first major cuts, the USDA canceled the "Local Food Purchase Assistance Cooperative Agreement Program, which was due to provide about $500 million this year to food banks," Huffstutter explains. "Trump's administration also rolled out cuts to other federal funding that has kept small agriculture businesses open."

For decades, Washington has used "an intricate web of economic support. . . to pump money into rural America," Huffstutter writes. "Much of it has now been frozen, cut back or eliminated – including at least $1.5 billion in USDA funds for schools and food banks."

To help contain the damage, states are "forced to come up with funding from their own budgets – or shutter programs altogether," Huffstutter adds. "States like West Virginia – where more than half the $19.2 billion annual budget for fiscal 2025 relies on federal funds – are particularly hard-hit. . . . Federal funds on average comprise about one-third of states' annual spending."

Meanwhile, some farmers have excess production that was planned for a Local Food for Schools contract. Kentucky farmer Andre Faul's 1,300-pound problem serves as an example. "His farm had a contract with Oldham County Schools to provide chicken and pork for school lunches," reports Beth Musgrave of the Lexington Herald-Leader. "But Faul and 130 Kentucky farmers who were paid through a federal program were notified the USDA nixed the grant. . . . How was Faul going to pay for the 1,300 pounds of chicken Oldham County had already ordered and he had already paid for and fed?"

Madison Pergrem, a spokeswoman for the Kentucky Department of Agriculture, told Musgrave, "The LFPA program has significantly supported Kentucky agriculture and delivered fresh, local products to our communities in need. . . .KDA will actively pursue and develop new opportunities to advance these efforts.”

Musgrave adds, "Kentucky food programs were started to help local food production and expand markets for smaller growers."