USDA Releases Some Conservation Funds

OMAHA (DTN) -- Agriculture Secretary Brooke Rollins announced late Thursday that USDA is releasing approximately $20 million in conservation contracts -- a small share of the dollars from contracts that farmers have signed in the past two years, as the Biden administration boosted conservation funding tied to climate-smart agriculture.

The Trump administration has not provided details on how or when it will release more than $30 billion in economic and disaster aid passed by Congress in December. The $10 billion set aside for economic aid is expected to go out to farmers by mid-March.

Just over a week into the job, Rollins is starting to face some of the pressures that come with one of the federal government's biggest departments. After a whirlwind tour of visits to Kentucky, Kansas, Missouri and Texas, Rollins is now hearing from more groups and members of Congress who are complaining about frozen funds to farmers and staffing cuts at USDA agencies.

Rollins said last week farmers are facing their "worst economic straits in nearly a century." However, the department has focused more attention on cutting staff across agencies and announcing contracts that have been terminated, especially those tied to diversity, equity, inclusion and accessibility (DEIA).

Georgia senators this week wrote Rollins calling for disaster funds, and the New York Times wrote an article about North Carolina farmers struggling to recover from Hurricane Helene.

In December, Congress passed $10 billion in economic aid to make up for the failure to pass a farm bill and included $20.78 billion to help with losses from an array of natural disasters in 2023 and 2024.

Asked about the status of those funds, a USDA spokesperson stated to DTN, "Secretary Rollins is working with her team to quickly distribute the $30 billion in disaster aid that Congress recently authorized. She understands that the past four years have been particularly difficult for farmers due in part to Biden's disastrous economic policies, and she is committed to ensuring that farmers receive the aid they have been promised in a timely manner."

The American Farm Bureau Federation on Thursday, Feb. 20, highlighted that Chapter 12 bankruptcies nationally hit 216 farms, up 55% from 2023, but still lower than the all-time high of 599 in 2019.

CONSERVATION DOLLARS RELEASED

The department issued a news release Thursday evening highlighting the $20 million in conservation contracts that have been reinstated for farmers.

The administration had initially said last month that contracts with individuals such as farmers would not be affected by the funding freeze.

At that pace, it's going to take a while for the new administration at USDA to release all the funds farmers have contracted.

In 2023, the Biden administration spent $850 million in IRA funds to sign up farmers under the Environmental Quality Incentives Program (EQIP), the Conservation Stewardship Program (CSP), the Agricultural Conservation Easement Program (ACEP) and the Regional Conservation Partnership Program (RCPP).

The Natural Resources Conservation Service (NRCS) announced in early October that it had planned to spend $5.7 billion for conservation contracts in FY 2025 through the Inflation Reduction Act (IRA). At the time, the Biden administration herald the funding as the "most conservation assistance made available in a single year." It's unclear how much of that funding was contracted to farmers before the change in administration.

USDA received 156,485 applications for conservation programs from farmers in FY 2024. The IRA dollars were set to make up the bulk of spending for those contracts.

In a statement Thursday, USDA said, "In alignment with White House directives, Secretary Rollins will honor contracts that were already made directly to farmers. Specifically, USDA is releasing approximately $20 million in contracts for the Environmental Quality Incentive Program, the Conservation Stewardship Program, and the Agricultural Conservation Easement Program."

USDA did not mention any funding was released under the Regional Conservation Partnership Program. USDA had announced 92 RCPP contracts last year worth $1.5 billion. RCPP generally funds projects that include multiple partners and agencies to scale up conservation practices in areas such as a large watershed.

Rollins leveled criticism at the volume of conservation dollars the Biden administration "rushed out" under the IRA. Rollins also said some of the funding "had nothing to do with agriculture" as well.

"American farmers and ranchers are the backbone of our nation," Rollins said. "They feed, fuel, and clothe our nation and millions of people around the world. The past four years have been among the most difficult for American Agriculture, due in no small measure to Biden's disastrous policies of over-regulation, extreme environmental programs, and crippling inflation. Unfortunately, the Biden administration rushed out hundreds of millions of dollars of IRA funding that was supposed to be distributed over eight years. After careful review, it is clear that some of this funding went to programs that had nothing to do with agriculture -- that is why we are still reviewing -- whereas other funding was directed to farmers and ranchers who have since made investments in these programs. We will honor our commitments to American farmers and ranchers, and we will ensure they have the support they need to be the most competitive in the world."

USDA added, "This is the first tranche of released funding, and additional announcements are forthcoming as soon as USDA continues to review IRA funding to ensure that we honor our sacred obligation to American taxpayers -- and to ensure that programs are focused on supporting farmers and ranchers, not DEIA programs or far-left climate programs."

A federal judge last week in the U.S. District Court for D.C. ordered federal agencies to release all frozen funds tied to the IRA and the Bipartisan Infrastructure Law. The White House Office of Management and Budget then issued a memo to departments that they could pause funding at their own discretion.

GROUPS CALL FOR FUNDING RELEASES

Meanwhile, farm and conservation groups are calling on USDA to release the funds and account for the number of conservation staff whose jobs have been terminated.

The National Association of Conservation Districts (NACD) on Thursday said the group is "deeply concerned about the severe impacts recent federal layoffs are having on our nation's ability to conserve the natural resources that sustain us all." NACD is normally considered a group that doesn't get into controversial subjects. The group expressed concern about the loss of more than 1,000 federal conservation employees and the impacts of the funding freeze on producers. The loss of workers will also exacerbate backlogs of service at USDA, the group warned.

"These actions erode producers' trust and confidence in our nation's locally led, voluntary conservation delivery system," said NACD President Gary Blair. "The loss of these employees is a considerable setback. It takes years to recruit, hire, and train dedicated individuals with a passion for public service and the specialized skills needed to provide high quality technical assistance to producers. NACD calls on USDA and Congress to take immediate action to mitigate the long-term effects on vital farm bill conservation programs and ensure that critical support continues for America's producers."

The National Farmers Union (NFU) issued an "action alert" this week, calling on farmers to take a survey and share their stories about frozen funds or lost contracts, especially if "you or someone you know are in financial distress after funding was frozen," NFU stated.

NFU on Friday welcomed Rollins releasing the "first tranche of IRA funding" under review but called for the release of the remaining funds.

"Secretary Rollins' action yesterday is a welcome first step in ensuring USDA honors its commitments to farmers and rural communities. America's family farmers and ranchers are facing a year of economic uncertainty, exacerbated by the uncertainty of the administration's pause on federal funding and staff dismissals," said Rob Larew, president of NFU. "Farmers are now making business decisions for the coming year and can't wait much longer. We urge USDA to quickly complete its review, release all remaining funds, and ensure continuity in these essential programs."

The U.S. Senate Agriculture Committee on Wednesday, Feb. 26, has a hearing set with farm groups and state agriculture directors that likely will provide fodder for senators to ask about not only economic challenges but funding freezes.

See, "USDA Cuts Stretch Across Nation's Top Research Labs to Small, Urban Farmers Markets," https://www.dtnpf.com/…

Also see, "Forest Service, NRCS Among Agencies Hit by Mass Firings as USDA Cuts Jobs," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

(c) Copyright 2025 DTN, LLC. All rights reserved.