Agriculture Secretary Brooke Rollins on Thursday announced that USDA will release the first tranche of funding that was paused due to the review of funding provided by the Inflation Reduction Act in President Biden’s administration, but farm groups said more funds should be released as soon as possible. 

USDA said in a news release, “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,” the news release said. All three are Natural Resources Conservation Service programs.

“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,” Rollins said.

“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,” Rollins said.

National Farmers Union President Rob Larew said in a news release today, “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,” Larew said.

“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.”

American Farm Bureau President Zippy Duvall said today, “Farm Bureau appreciates the decision by Agriculture Secretary Brooke Rollins to release funds for conservation program contracts that USDA entered into with farmers and ranchers. The freezing of funds created uncertainty for farm families who had already invested in improvements to their land after receiving a financial commitment from the federal government.”

“I met with Secretary Rollins yesterday and conveyed concerns over this issue and others, along with priorities on the minds of rural Americans,” Duvall said.

“I was glad to hear this news as well as her strong commitment to continue to champion the issues of America’s farmers and ranchers. We’re thankful the administration recognized the importance of making good on the first tranche of agreements. We look forward to future announcements about fulfilling previously signed contracts. We stand ready to work with her to address the growing list of challenges facing agriculture,” Duvall said.

Mike Lavender, the policy director of the National Sustainable Agriculture Coalition, said, “While USDA fires its staff and deliberates whether or not to honor its own legal contracts, tens of thousands of farmers are being left in limbo.”

“The ‘first tranche’ released this week represents roughly 1% of the IRA funding USDA guaranteed farmers through signed contracts from CSP and EQIP alone beginning in FY2023 — meaning that from coast to coast, countless farmers are waking up today still uncertain of how they’ll make ends meet or whether USDA will honor its word.”

“We urge USDA to urgently provide specificity and clarity for how it will release frozen funds, fully reopen conservation program enrollment, and swiftly honor its legal obligations to farmers and organizations by immediately releasing funding on all signed contracts,” Lavender said.

National Association of Conservation Districts President Gary Blair said, “NACD supports this important first step. We strongly encourage Secretary Rollins to expand USDA’s commitments to producers and provide long-term security in conservation programs.”

“Producers plan for conservation and make land management decisions well in advance of planting season. Funding uncertainty has multi-year impacts on agricultural production and the security of our food chain. NACD encourages the administration to fund future contracts, to include full commitment to disbursing financial assistance provided through IRA farm bill programs and the Partnerships for Climate Smart Commodities,” Blair said. 

NACD added that the group “recognizes each administration’s right to assess obligations under contracts and financial assistance vehicles.”

“However, the current pause in funding has widespread impacts on the partners in conservation and agriculture who work side-by-side with USDA across the nation. Livelihoods are at stake and there have already been rounds of layoffs, exacerbating the impact of USDA terminations.

“This has an even greater impact on the quality and timeliness of services that USDA and its partners provide to producers and landowners across the country. NACD encourages the expedited release of funds owed to partners, in concurrence with a review of these contracts and financial assistance vehicles,” Blair said.