USAID Funding Freeze: Implications for U.S. Farmers and Global Food Aid

February 13, 2025

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The Trump administration’s freeze on USAID funding has caused significant disruptions for U.S. farmers and global food aid programs. With over $500 million worth of food aid stranded and at risk of spoilage, American farmers face reduced demand for their crops, while international humanitarian efforts are left in limbo¹²³.

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Key Developments

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Food Aid Program Halt: The USAID “Food forPeace” program, which procures crops like wheat, soybeans, and sorghum from U.S. farmers, has been paused. This has left 31,000 tons of food stranded inHouston and over $500 million worth of food aid at risk of spoilage¹².
Research Disruptions: USAID funding cuts have forced the shutdown of agricultural research programs at universities, including projects addressing soybean diseases that threaten crop yields in the U.S. and abroad³⁴.
Economic Uncertainty: Farmers are grappling with rising costs and stagnant commodity prices. For example, soybean prices remain below the break-even point at $9 per bushel¹².

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Impact on Farmers

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Small vs. Large-Scale Farmers: Small-scale farmers are particularly vulnerable as they rely heavily on USAID purchases for income¹³. Larger farms may have more resilience but still face significant losses due to reduced export opportunities¹²⁴.
Export Market Disruptions: The freeze has stalled international shipments, affecting farmers who depend on USAID programs as a key market for their crops¹²³.
Research Losses: The cessation of research funding sets back efforts to combat crop diseases like soybean rust, which can devastate yields³⁴.

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What Farmers Need to Prepare For

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Monitor Market Volatility: Farmers should anticipate fluctuations in commodity prices due to reduced demand from USAID programs¹².
Diversify Crop Strategies: Exploring alternative markets or crop diversification may help mitigate risks from export disruptions¹⁴.
Engage Policymakers: Advocacy for the resumption of USAID programs could help restore stability in agricultural markets¹³⁴.

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As legal challenges to the funding freeze continue, the future remains uncertain for farmers and global food aid recipients alike¹²³⁴. Farmers must stay informed and adapt their strategies as developments unfold in the coming months.

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