Farmers in the US are on the verge of bankruptcy due to Trump’s suspension of USDA grants

US farmers who received grants from the Department of Agriculture (USDA) are forced to postpone planned work due to Donald Trump’s freeze on financial projects.

In particular, an organic farmer from Montana, Nate Powell-Palm, expected to receive a $648,000 grant to build a feed mill and process organic grain grown by about 150 local farmers.

Two farmers, who did not identify themselves, said that due to the USDA’s funding freeze, they are just weeks away from being forced to declare bankruptcy.

In addition, farmers and food organizations across the country are cutting staff, halting investments and losing key funding amid the USDA’s freeze on a wide range of grants, more than two dozen farmers and agricultural support groups in seven states told the publication.

The farmers and farm organizations told Reuters that some of the frozen USDA money is related to soil and water conservation, organic and local food, regional and rural food systems, and minority and women farmers.

Historically, Trump has enjoyed broad support in the US farm belt, where he won a majority of states in the November elections. But recent actions – such as freezing much of the aid and a broad federal spending review that suspended payments – have disrupted some agricultural markets and caused stress and confusion on farms.

U.S. Secretary of Agriculture Brooke Rollins said that the USDA is considering direct payments to farmers if trade wars lead to farm losses. At the same time, she noted that some of the funds have already been unfrozen, but she did not name the amount, directions, or sources of funding.

Currently, the USDA administers hundreds of programs that support the agricultural sector, either through grants and loans or direct payments and other subsidies. According to a December report by the U.S. Government Accountability Office, U.S. farmers and ranchers received $161 billion in fiscal years 2019 through 2023.

The freeze has exacerbated farmers’ problems related to low grain prices. According to the latest data from the U.S. Court, the number of farm bankruptcy filings in the U.S. jumped by 55% in 2024 compared to the previous year.

Tags: USA