South Dakota farmers face mounting financial uncertainty as a January executive order froze federal agricultural funding, leaving many with investments they cannot recoup and promised support that hasn’t materialized.
With tomorrow’s April 15 deadline for enrolling in USDA’s key commodity safety net programs looming, the freeze affecting programs funded through the Inflation Reduction Act has hit rural communities at a critical time for spring planting decisions.
Small Producers and Food Systems
The funding freeze has impacted small producers like Stephanie Peterson, owner of Fruit of the Coop, a 7-acre farm near Brandon, South Dakota. Peterson’s farm focuses on pasture-raised chickens that produce eggs with higher nutritional value.
“I’ve always been interested in homesteading, and the local food movement has been something I’ve been passionate about – trying to get back to where we all came from,” Peterson states on her farm’s website.
Her operation supplies eggs to local restaurants and markets, supporting a local food ecosystem now threatened by funding uncertainties. Peterson received a $36,000 USDA grant over two years through the Regional Food Business Center’s Business Builder program, with approximately $4,000 designated for egg distribution equipment and the remainder for hiring a part-time employee, according to Sioux Falls Business. While she received her first payment last fall, the second payment is now in jeopardy due to the funding freeze, forcing her to scale back planned expansion and potentially let go of staff hired specifically with this funding.
Regional Impact
This uncertainty extends beyond South Dakota’s borders. In Iowa, farmers stand to lose up to $356 million in future conservation funding through 2031, according to an analysis published by the Iowa Soybean Association. The association, in a letter to lawmakers dated February 8, reported that Iowa and Midwest farmers are owed $11 million for conservation work completed last year.
Reservation Ranchers Lose Cultural Lifelines
The funding freeze has also affected Native American farmers and ranchers, creating unique challenges for tribal communities. Virgil Two Eagle Sr., who manages the Black Feather Buffalo Project on the Pine Ridge Reservation, tends to over 70 buffalo on more than 3,600 acres of reservation land. Two Eagle took over his uncle’s ranch in 2017 and has been working with the Tanka Fund, a nonprofit that helps Native buffalo ranchers receive funding and secure bison, according to the Tanka Fund website.
The USDA grant funding allowed producers like Two Eagle to sell their products to a commodity program that would distribute them to people on the Pine Ridge Reservation. The program meant tribal members could access buffalo meat raised on their own reservation—a significant cultural and nutritional benefit now threatened by the funding uncertainty.
Administration Perspective
USDA Secretary Brooke Rollins has framed the funding freeze as part of the administration’s effort to ensure that USDA programs support farmers directly rather than programs that do not align with priorities. According to USDA press releases, Rollins has prioritized “expediting up to $10 billion directly to agricultural producers” through the Emergency Commodity Assistance Program while implementing a review of Inflation Reduction Act funding.
On February 20, Secretary Rollins announced the release of approximately $20 million in contracts for key conservation programs while emphasizing future funding would focus on “supporting farmers and ranchers, not DEIA programs or far-left climate programs.”
“American farmers and ranchers are the backbone of our nation. They feed, fuel, and clothe our nation—and millions of people around the world,” Rollins stated in the official USDA release.
Rollins has specifically criticized the Inflation Reduction Act, stating it “delivered more bureaucracy than benefits for rural families” and describing the administration’s actions as a “course correction” to support “President Trump’s vision for energy independence.”
South Dakota Congressional Response
South Dakota’s congressional delegation has offered mixed responses to the funding freeze. Rep. Dusty Johnson has supported the administration’s efficiency initiatives, writing in his December 2024 column that he backs the Department of Government Efficiency’s review of agricultural spending. In January 2025, he expressed enthusiasm for “cut[ting] spending, reform[ing] welfare, cut[ting] regulations, and streamlin[ing] government programs.”
Senate Majority Leader John Thune has taken a more nuanced position, supporting Secretary Rollins while also advocating for “ensuring that our farmers and ranchers have the tools they need to operate their businesses” and the “certainty that farmers and ranchers desperately need.”
Conservation Impact
Beyond individual farmers, the funding pause is affecting key conservation programs throughout the state. According to USDA’s Natural Resources Conservation Service, South Dakota projects received $61 million in funding in 2023 through the Regional Conservation Partnership Program, with funds coming from both the Inflation Reduction Act and the Farm Bill. This investment in conservation practices now faces significant disruption.
Looking Ahead
According to official NRCS documentation, the Inflation Reduction Act provided approximately $19.5 billion over five years for climate-smart agriculture through several USDA conservation programs. Despite a federal judge ruling the funding freeze “ill-conceived” in February, most agricultural stakeholders report that significant funding remains frozen.
As spring planting season gets underway, agricultural communities across the Midwest continue to navigate immediate operational challenges and longer-term questions about program stability. Tomorrow’s enrollment deadline adds urgency to an already difficult situation.
