Funding freeze leaves Kansas farmers in limbo

Many Kansas farmers are in limbo and waiting for promised payments under contracts they signed with the federal government. It comes after a federal directive from the Trump administration paused payments at the U.S. Department of Agriculture.

By

State News

February 28, 2025 - 3:19 PM

A wind farm in Grant County stands tall among grain crops in southwest Kansas. Current rural renewable energy projects have come to a halt after the federal funding freeze. Photo by David Condos/Kansas News Service

Farming in Kansas can be clouded with uncertainty, like harsh weather and limited natural resources. But current funding freezes have added a new variable and left some of them with empty hands.

Some farmers have not been paid out for work they already completed under contracts signed last year. At least millions of dollars are left in limbo.

After the administration of President Donald Trump ordered a funding freeze of the Inflation Reduction Act from the Biden administration, waves of federal funding have ceased. The U.S. Department of Agriculture had funding tied up under that act. Some programs were put on pause, leaving Kansas farmers and rural communities looking for answers.

Rural renewable energy projects and conservation funding have also been stalled on the High Plains.

Bill Shaw, owner of Shaw Feedyard in Ashland, has a contract worth $600,000 for rural energy development. He said he never thought twice about the government holding up its end of a contract, until now.

“Now the USDA is telling me I may not get paid and I don’t understand how that’s possible,” Shaw said. “If I have a contract with the government they hold me to it. I’m doing the same.”

The freeze has paused payments from the Rural Energy for America Program, or REAP. The program was meant to help ag workers become more energy efficient and produce renewable energy. This would cut their energy costs while offsetting some of the negative environmental impacts farming can produce.

Shaw was one of many rural Kansans who saw the opportunity to go green and save money. He installed solar panels on his feedyard operation to cut down on his electric bill and offset the carbon emissions produced by his operation.

The program requires the work be done upfront. Farmers pay for the project, like installing renewable energy or planting cover crops with their own money, and the government reimburses them up to 50%.

“If Trump doesn’t want to have a solar energy program in the future, that’s his business. But this is a deal that was already done long before he ever came into office,” Shaw said.

The USDA wouldn’t confirm how many REAP grants are paused in Kansas.

The funding freeze impacts programs that incentivize farming practices that could help the environment and reduce climate change. But Kansans will likely need those new options as drought becomes more frequent and water more scarce.

The USDA has since released the first wave of funds from the $20 million that were being held for the Environmental Quality Incentive Program, the Conservation Stewardship Program and the Agricultural Conservation Easement Program.

Kansas had 46 contracts worth $480,000 with the Natural Resources Conservation Service which deliver conservation solutions to agricultural producers and improve the quality of air, water, soil and habitat.

Some of those funds may have been resolved with the release of funds. But rural renewable energy projects are still paused.

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