by Lynn S. Caldwell

Late on the evening of Feb. 10, the Trump administration announced a cross-agency freeze on all federal financial assistance. This sweeping directive affected every federal agency — including many programs that support local food, small farms, and underserved communities. 

Farmers across the Carolinas and most of the United States are finding themselves in precarious economic positions with the unexpected suspension of funding for programs that support their established practices and plans that are underway, putting them in limbo. 

The way many of these funding programs typically work is that the landowner/farmer pays for the improvements through loans or out of their own pockets, and then they submit documentation for the government to pay out its contracted cost-share. 

“Like any small business, a farm runs on slim margins. Most of us are week to week through the season,” says James Swofford of Old North 40 Farm. “Any financial event can close your business. When funds are available, we apply, but if we ‘win’ help from the government and then they don’t pay, where should our allegiance be?”

Swofford articulated how this pause on federal funding affects his operations. Even as courts attempt to halt many of the orders, communities are reeling from the effects, triggering fear and uncertainty.

Suspensions include loans for farmers; conservation incentives; cooperative extension services; and value-added producer grants. Those grants include established programs like the Local Agriculture Market Program (LAMP), the Senior Farmers Market Nutrition Program (SFNMP), and Marketing Assistance for Specialty Crops (MASC) — all programs authorized and funded through bipartisan agreements in Congress over many years. They are now at a standstill.

Most of our local farmers have experienced challenges in getting approved for a MASC grant or are in the midst of the process of getting paid for one that is already under contract. Hiram Ramirez, who is well known in the Charlotte area for his mushroom business Urban Gourmet Farms Mushrooms, got approved for a $9,000 grant to expand his operations, but currently that funding is on hold.

“The thing that is really getting to me about the freeze is that these funds have already been precured, budgeted, and allocated by Congress, but some folks in the government just want to play politics with our lives and livelihoods,” Ramirez says. “If grants are removed altogether, most small farms will not have the resources to grow without taking on uncontrollable debt. We barely break even on a good day and really rely on grants for big ticket items. We can only sell our produce for so much without being shut out of the market.”

Ramirez continues, “The lists of things that I am worried about is too long to mention. Regarding my little world of farming, I feel small farmers will be left with zero recourse and be forced to shut down. Our local food network is in danger for sure.”

USDA funding has been transformative for the regenerative agriculture movement. It’s a critical source of support. Mike Hansen and Sue Meyer of Ozark Azerk Farm have been outspoken proponents for this funding on behalf of their farm and other farmers incorporating regenerative practices.

“We were awaiting payment for a USDA grant awarded to us in 2024 when the Administration froze all payments on January 27th. Initially we were hopeful that the judge’s ruling would lift the freeze, but the Administration has kept the freeze in place,” Hansen says. “The grant would have allowed us to expand our regenerative farming approach. My wife and I took money out of retirement savings to pay for work completed in October 2024 with the expectation that the USDA would uphold their end of the bargain. Other farmers have done similar.”

Em Joy, who owns Fair Share Farm in Pfafftown, NC turned in her application, which was approved, and she should have gotten her first payment at the beginning of February. The $10,000 in funding would tremendously offset the cost of doing business for her boutique operation. 

“I would expect that anyone with power or authority should stand up for their farmers and work to get the funds that have been promised. These are not programs that are being cut before applications, these are programs that are being ripped out from under hard working people and businesses that spend their days growing the food we need,” Joy says. “There is a reason agriculture is subsidized: it is hard work with low profit margins and every bit helps us to keep going. We do not run our business based on grants, but they make a huge difference to our family and our bottom line. Simply put, we would have a lower standard of living without them even if we are determined to carry on.”

These are just a few of the stories emerging as local farmers assess the threat of major disruptions in sustainable and regenerative agriculture. The current administration continues to signal its intention to slash Congressionally approved programs, including those for sustainable agriculture.

In addition to programs that support specific farmers and populations, food hubs across the state and the country have been locked out of receiving disbursements through the Local Food Purchase Assistance Cooperative Program (LFPA) and the Local Food Promotions Program (LFPP), despite having signed and executed contracts with the USDA. These programs operate on a reimbursement basis, meaning food hubs like Freshlist must cover the costs of purchases upfront and rely on scheduled disbursements to maintain cash flow. 

“The sudden halt in funding has created immediate financial uncertainty — not just for us as a food hub, but for the farmers we support and the customers who depend on us,” says Erin Bradley, Freshlist. “The complete lack of communication from USDA on this matter has also been incredibly frustrating as groups worry about paying their staff and farmers and paying for equipment and other infrastructure that was required to fulfill their grant activities.” Freshlist has had to cut back on some of their purchases — a direct loss to farmers — because the food hub can’t depend on the financial reimbursements.

“These programs have been instrumental in expanding market access for farmers, reducing food waste, and keeping food dollars in our communities,” Bradley wrote in a letter to Congressional Representative Alma Adams. “These programs play a vital role ensuring stability and growth for small farms. They allow us to commit to crop purchases before planting, provide reliable market access, and respond quickly to crises. For example, during Hurricane Helene, we helped farmers who lost access to their usual markets by selling their products until their supply chains recovered.”

North Carolina’s Local Food Purchase Agreement program has historically been a resounding success for the small farmers and residents of North Carolina. 

• 253 farmers participated in this program in 2024. 
• 18 food hubs packed 92,671 prepacked food boxes for distribution by 138 community-based distribution partners 
• 1,033,654 pounds of food was purchased at prices set by participating farmers 
• 94 percent of farmers surveyed stated that participating in the program was worth their extra time and effort 
• A $2.8 million investment by the USDA has netted $9.04 million in economic impact across North Carolina 

That funding has also been suspended.

USDA grant programs are critical for supporting the regional food economy, and delays like this undermine the trust and planning that farmers, food hubs, and nonprofits rely on to succeed. The Carolina Farm Stewardship Association (CFSA) sent a newsletter on February 19 with this update. 

“As of this writing, CFSA is still waiting on hundreds of thousands of dollars in reimbursements for grant work completed in 2024,” Policy Director Matt Kneese says. “Carolina producers continue to tell us that they are owed thousands in existing conservation grants, value-added producer grants, and more, with little to no communication from USDA as to why funds are frozen or for how long. “

The interruption in funding raises concerns about whether USDA will disburse already obligated funds to farmers who have existing agreements with the department — and how those farmers will make do if it doesn’t. Many advocates are reporting that calls and emails are changing opinions internally in Congress. The best action you can take is to contact your representatives and make your voice heard. 

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