USDA Cancels Climate Smart Funds Impacting Local Farm Programs
The USDA has abruptly ended its $3.1 billion Climate-Smart Commodities program, significantly affecting farm and environmental organizations across Wisconsin. A total of 29 projects in the state, involving $1 billion in funding, have been halted.
USDA Secretary Brooke Rollins stated that the program was discontinued due to “sky-high administration fees” and limited direct benefit to farmers. The agency has rebranded the effort as the Advancing Markets for Producers program, requiring that 65% of all funds go directly to producers.
Among the affected groups is the Fox-Wolf Watershed Alliance, which had secured nearly $5 million. Agriculture project manager Katie Woodrow shared that the group was working with about 40 farmers through multi-year contracts.
“Farms had made plans to do no-till plantings because they were under contract… But we’re a pass through for that funding. So if the federal funding isn’t available, we don’t have reserves on hand to be able to pay our farmers,” said Woodrow.
Their project was part of a $50 million collaboration led by the Edge Dairy Farmer Cooperative, which is still evaluating the situation.
Spring Valley-based Marbleseed also saw its $4.5 million organic farming project stalled. Executive Director Lori Stern said they had paused onboarding new farms after the initial funding freeze and had to rely on private donors to pay the 12 farmers already signed on.
“The fact that this project had ‘climate-smart’ in the title, I had a feeling that without some major kind of re-spinning of the narrative, that it was probably not going to be funded,” Stern explained.
Both groups intend to reapply under the new guidelines, but staffing and support services may be scaled back due to funding restrictions. Rebuilding farmer trust and project continuity remain key concerns.